EX-99.2 3 chk-ex_992x20210331x8kxpr.htm EX-99.2

Exhibit 99.2

CHESAPEAKE ENERGY CORPORATION - SUPPLEMENTAL TABLES

Table of Contents:			Page
Condensed Consolidated Statements of Operations			2
Condensed Consolidated Balance Sheets			3
Condensed Consolidated Statements of Cash Flows			4
Oil, Natural Gas and NGL Production and Average Sales Prices			5
Gross Margin			6
Capital Expenditures Accrued			7
Oil and Natural Gas Hedging Positions			8
Non-GAAP Financial Measures			10
Reconciliation of Net Income (Loss) Attributable to Chesapeake			11
Reconciliation of Adjusted EBITDAX			12
Free Cash Flow			13
Net Debt			13

1

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

						Successor									Predecessor
						Period from February 10, 2021 through March 31, 2021									Period from January 1, 2021 through February 9, 2021						Three Months Ended March 31, 2020
($ in millions except per share data)
Revenues and other:
Oil, natural gas and NGL						$	553								$	398					$	894
Marketing						277									239						724
Oil and natural gas derivatives						46									(382)						907
Gains on sales of assets						4									5						—
Total revenues and other						880									260						2,525
Operating expenses:
Production						40									32						122
Gathering, processing and transportation						111									102						285
Severance and ad valorem taxes						24									18						54
Exploration						1									2						282
Marketing						280									237						746
General and administrative						15									21						65
Separation and other termination costs						—									22						5
Depreciation, depletion and amortization						122									72						603
Impairments						—									—						8,522
Other operating expense (income), net						2									(12)						68
Total operating expenses						595									494						10,752
Income (loss) from operations						285									(234)						(8,227)
Other income (expense):
Interest expense						(12)									(11)						(145)
Gains on purchases or exchanges of debt						—									—						63
Other income (expense)						22									2						(17)
Reorganization items, net						—									5,569						—
Total other income (expense)						10									5,560						(99)
Income (loss) before income taxes						295									5,326						(8,326)
Income tax benefit						—									(57)						(13)
Net income (loss)						295									5,383						(8,313)
Net loss attributable to noncontrolling interests						—									—						16
Net income (loss) attributable to Chesapeake						295									5,383						(8,297)
Preferred stock dividends						—									—						(22)
Net income (loss) available to common stockholders						$	295								$	5,383					$	(8,319)
Earnings (loss) per common share:
Basic						$	3.01								$	550.35					$	(852.97)
Diluted						$	2.75								$	534.51					$	(852.97)
Weighted average common shares outstanding (in thousands):
Basic						97,907									9,781						9,753
Diluted						107,159									10,071						9,753

2

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CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

						Successor									Predecessor
($ in millions)						March 31, 2021									December 31, 2020
Assets
Current assets:
Cash and cash equivalents						$	340								$	279
Restricted cash						68									—
Accounts receivable, net						704									746
Short-term derivative assets						4									19
Other current assets						74									64
Total current assets						1,190									1,108
Property and equipment:
Oil and natural gas properties, successful efforts method
Proved oil and natural gas properties						4,748									25,734
Unproved properties						483									1,550
Other property and equipment						491									1,754
Total property and equipment						5,722									29,038
Less: accumulated depreciation, depletion and amortization						(120)									(23,806)
Property and equipment held for sale, net						2									10
Total property and equipment, net						5,604									5,242
Long-term derivative assets						2									—
Other long-term assets						108									234
Total assets						$	6,904								$	6,584
Liabilities and stockholders' equity (deficit)
Current liabilities:
Accounts payable						$	346								$	346
Current maturities of long-term debt, net						—									1,929
Accrued interest						11									3
Short-term derivative liabilities						305									93
Other current liabilities						781									723
Total current liabilities						1,443									3,094
Long-term debt, net						1,262									—
Long-term derivative liabilities						76									44
Asset retirement obligations, net of current portion						237									139
Other long-term liabilities						5									5
Liabilities subject to compromise						—									8,643
Total liabilities						3,023									11,925
Contingencies and commitments
Stockholders’ equity (deficit):
Predecessor preferred stock, $0.01 par value, 20,000,000 shares authorized: 0 and 5,563,458 shares outstanding						—									1,631
Predecessor common stock, $0.01 par value, 22,500,000 shares authorized: 0 and 9,780,547 shares issued						—									—
Predecessor additional paid-in capital						—									16,937
Predecessor accumulated other comprehensive income						—									45
Successor common stock, $0.01 par value, 450,000,000 shares authorized: 97,907,081 and 0 shares issued						1									—
Successor additional paid-in capital						3,585									—
Retained earnings (accumulated deficit)						295									(23,954)
Total stockholders’ equity (deficit)						3,881									(5,341)
Total liabilities and stockholders’ equity (deficit)						$	6,904								$	6,584

3

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

						Successor									Predecessor
						Period from February 10, 2021 through March 31, 2021									Period from January 1, 2021 through February 9, 2021						Three Months Ended March 31, 2020
($ in millions)
Cash flows from operating activities:
Net income (loss)						$	295								$	5,383					$	(8,313)
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation, depletion and amortization						122									72						603
Deferred income tax benefit						—									(57)						(10)
Derivative (gains) losses, net						(46)									382						(907)
Cash receipts (payments) on derivative settlements, net						(32)									(17)						89
Stock-based compensation						—									3						5
Gains on sales of assets						(4)									(5)						—
Impairments						—									—						8,522
Non-cash reorganization items, net						—									(6,680)						—
Exploration						—									2						279
Gains on purchases or exchanges of debt						—									—						(63)
Other						4									45						31
Changes in assets and liabilities						70									851						161
Net cash provided by (used in) operating activities						409									(21)						397
Cash flows from investing activities:
Capital expenditures						(77)									(66)						(518)
Proceeds from divestitures of property and equipment						4									—						7
Net cash used in investing activities						(73)									(66)						(511)
Cash flows from financing activities:
Proceeds from Exit Credit Facility - Tranche A Loans						30									—						—
Payments on Exit Credit Facility - Tranche A Loans						(80)									(479)						—
Proceeds from pre-petition revolving credit facility borrowings						—									—						2,331
Payments on pre-petition revolving credit facility borrowings						—									—						(2,021)
Payments on DIP Facility borrowings						—									(1,179)						—
Proceeds from issuance of senior notes, net						—									1,000						—
Proceeds from issuance of common stock						—									600						—
Debt issuance and other financing costs						(3)									(8)						—
Cash paid to purchase debt						—									—						(93)
Cash paid for preferred stock dividends						—									—						(22)
Other						—									(1)						(5)
Net cash provided by (used in) financing activities						(53)									(67)						190
Net increase (decrease) in cash, cash equivalents and restricted cash						283									(154)						76
Cash, cash equivalents and restricted cash, beginning of period						125									279						6
Cash, cash equivalents and restricted cash, end of period						$	408								$	125					$	82
Cash and cash equivalents						$	340								$	39					$	82
Restricted cash						68									86						—
Total cash, cash equivalents and restricted cash						$	408								$	125					$	82

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OIL, NATURAL GAS AND NGL PRODUCTION AND AVERAGE SALES PRICES (unaudited)

						Successor
						Period from February 10, 2021 through March 31, 2021
						Oil												Natural Gas												NGL												Total
						MBbl per day						$/Bbl						MMcf per day						$/Mcf						MBbl per day						$/Bbl						MBoe per day						$/Boe
Appalachia						—						—						1,283						2.53						—						—						214						15.21
Gulf Coast						—						—						524						2.68						—						—						87						16.09
South Texas						37						62.10						109						5.12						14						28.51						69						47.24
Brazos Valley						29						60.76						34						8.99						4						16.49						38						55.09
Powder River Basin						10						58.95						57						4.82						3						34.75						23						42.57
Total						76						61.19						2,007						2.89						21						27.20						431						25.57
						Predecessor
						Period from January 1, 2021 through February 9, 2021
						Oil												Natural Gas												NGL												Total
						MBbl per day						$/Bbl						MMcf per day						$/Mcf						MBbl per day						$/Bbl						MBoe per day						$/Boe
Appalachia						—						—						1,233						2.42						—						—						206						14.49
Gulf Coast						—						—						543						2.44						—						—						90						14.62
South Texas						42						54.12						127						3.00						14						26.04						78						39.20
Brazos Valley						32						52.37						38						1.14						4						16.09						42						42.23
Powder River Basin						10						51.96						61						2.92						4						34.31						24						34.25
Total						84						53.21						2,002						2.45						22						25.92						440						22.63
						Non-GAAP Combined
						Three Months Ended March 31, 2021
						Oil												Natural Gas												NGL												Total
						MBbl per day						$/Bbl						MMcf per day						$/Mcf						MBbl per day						$/Bbl						MBoe per day						$/Boe
Appalachia						—						—						1,261						2.48						—						—						210						14.90
Gulf Coast						—						—						532						2.57						—						—						89						15.42
South Texas						40						58.30						117						4.09						14						27.39						73						43.44
Brazos Valley						30						56.84						36						5.27						4						16.32						41						49.13
Powder River Basin						10						55.84						59						3.94						4						34.54						23						38.75
Total						80						57.45						2,005						2.69						22						26.62						436						24.25
Average Realized Price												46.23												2.70												26.62												22.20
						Predecessor
						Three Months Ended March 31, 2020
						Oil												Natural Gas												NGL												Total
						MBbl per day						$/Bbl						MMcf per day						$/Mcf						MBbl per day						$/Bbl						MBoe per day						$/Boe
Appalachia						—						—						976						1.97						—						—						163						11.85
Gulf Coast						—						—						556						1.68						—						—						93						10.10
South Texas						63						48.53						159						2.18						19						11.71						108						33.38
Brazos Valley						41						46.30						69						0.60						9						5.26						61						32.55
Powder River Basin						17						43.23						89						1.84						6						13.30						38						26.01
Retained assets						121						46.93						1,849						1.86						34						10.71						463						20.53
Mid-Continent						5						44.75						49						2.24						3						14.06						16						23.38
Total						126						46.93						1,898						1.86						37						10.71						479						20.53
Average Realized Price												57.99												2.15												10.71												24.60

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GROSS MARGIN (unaudited)

						Successor															Predecessor												Non-GAAP Combined												Predecessor
						Period from February 10, 2021 through March 31,															Period from January 1, 2021 through February 9,												Three Months Ended March 31,												Three Months Ended March 31,
						2021															2021												2021												2020
($ in millions, except per unit)						$						$/Boe									$						$/Boe						$						$/Boe						$						$/Boe
Appalachia
Oil, natural gas and NGL sales						$	163					$	15.21								$	119					$	14.49					$	282					$	14.90					$	175					$	11.85
Production expenses						5						$	0.50								4						$	0.50					9						$	0.50					9						$	0.58
Gathering, processing and transportation expenses						42						$	3.94								34						$	4.17					76						$	4.04					71						$	4.83
Severance and ad valorem taxes						1						$	0.09								1						$	0.07					2						$	0.08					2						$	0.12
Gross margin						$	115					$	10.68								$	80					$	9.75					$	195					$	10.28					$	93					$	6.32
Gulf Coast
Oil, natural gas and NGL sales						$	70					$	16.09								$	53					$	14.62					$	123					$	15.42					$	85					$	10.10
Production expenses						6						$	1.50								4						$	1.12					10						$	1.32					11						$	1.30
Gathering, processing and transportation expenses						11						$	2.45								11						$	2.93					22						$	2.67					51						$	6.10
Severance and ad valorem taxes						2						$	0.56								2						$	0.54					4						$	0.55					6						$	0.66
Gross margin						$	51					$	11.58								$	36					$	10.03					$	87					$	10.88					$	17					$	2.04
South Texas
Oil, natural gas and NGL sales						$	164					$	47.24								$	122					$	39.20					$	286					$	43.44					$	328					$	33.38
Production expenses						14						$	4.07								12						$	3.90					26						$	3.99					36						$	3.62
Gathering, processing and transportation expenses						42						$	11.99								42						$	13.35					84						$	12.63					109						$	11.11
Severance and ad valorem taxes						9						$	2.61								8						$	2.53					17						$	2.57					19						$	1.94
Gross margin						$	99					$	28.57								$	60					$	19.42					$	159					$	24.25					$	164					$	16.71
Brazos Valley
Oil, natural gas and NGL sales						$	108					$	55.09								$	71					$	42.23					$	179					$	49.13					$	180					$	32.55
Production expenses						10						$	4.99								9						$	4.85					19						$	4.93					27						$	4.98
Gathering, processing and transportation expenses						2						$	1.05								3						$	1.92					5						$	1.45					9						$	1.56
Severance and ad valorem taxes						7						$	3.71								5						$	2.99					12						$	3.38					16						$	2.99
Gross margin						$	89					$	45.34								$	54					$	32.47					$	143					$	39.37					$	128					$	23.02
Powder River Basin
Oil, natural gas and NGL sales						$	48					$	42.57								$	33					$	34.25					$	81					$	38.75					$	90					$	26.01
Production expenses						5						$	4.37								3						$	3.37					8						$	3.91					18						$	5.28
Gathering, processing and transportation expenses						14						$	12.65								12						$	12.53					26						$	12.59					35						$	10.02
Severance and ad valorem taxes						5						$	3.92								2						$	2.88					7						$	3.44					9						$	2.76
Gross margin						$	24					$	21.63								$	16					$	15.47					$	40					$	18.81					$	28					$	7.95
Mid-Continent
Oil, natural gas and NGL sales						$	—					$	—								$	—					$	—					$	—					$	—					$	36					$	23.38
Production expenses						—						$	—								—						$	—					—						$	—					21						$	13.95
Gathering, processing and transportation expenses						—						$	—								—						$	—					—						$	—					10						$	6.45
Severance and ad valorem taxes						—						$	—								—						$	—					—						$	—					2						$	1.01
Gross margin						$	—					$	—								$	—					$	—					$	—					$	—					$	3					$	1.97

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CAPITAL EXPENDITURES ACCRUED (unaudited)

						Successor									Predecessor						Non-GAAP Combined						Predecessor
						Period from February 10, 2021 through March 31, 2021									Period from January 1, 2021 through February 9, 2021						Three Months Ended March 31, 2021						Three Months Ended March 31, 2020
($ in millions)
Drilling and completion capital expenditures:
Appalachia						$	39								$	30					$	69					$	63
Gulf Coast						11									22						33						29
South Texas						4									4						8						134
Brazos Valley						4									5						9						154
Powder River Basin						1									—						1						83
Retained assets						59									61						120						463
Mid-Continent						—									—						—						2
Total drilling and completion capital expenditures						59									61						120						465
Leasehold and additions to other PP&E						1									—						1						13
Capitalized interest						1									1						2						6
Total capital expenditures						$	61								$	62					$	123					$	484

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OIL AND NATURAL GAS HEDGING POSITIONS AS OF APRIL 30, 2021

Crude Oil Swaps
			Volume (MMBbls)						Avg. NYMEX Price of Swaps
Q2 2021(a)			4.8						$	42.62
Q3 2021			4.6						$	42.62
Q4 2021			4.3						$	42.62
Total 2021			13.7						$	42.62
Total 2022			11.2						$	44.30
Total 2023			1.9						$	47.17

Oil Basis Protection Swaps
			Volume (MMBbls)						Avg. NYMEX plus/(minus)
Q2 2021(a)			0.6						$	1.10
Q3 2021			1.7						$	0.45
Q4 2021			1.7						$	0.45
Total 2021			4.0						$	0.54
Total 2022			2.0						$	0.09

Natural Gas Swaps
			Volume (Bcf)						Avg. NYMEX Price of Swaps
Q2 2021(a)			135						$	2.66
Q3 2021			127						$	2.66
Q4 2021			115						$	2.67
Total 2021			377						$	2.66
Total 2022			249						$	2.55
Total 2023			45						$	2.75

Natural Gas Two-Way Collars
			Volume (Bcf)						Avg. NYMEX Bought Put Price						Avg. NYMEX Sold Call Price
Q2 2021(a)			8						$	2.80					$	3.29
Q3 2021			8						$	2.80					$	3.29
Q4 2021			8						$	2.80					$	3.29
Total 2021			24						$	2.80					$	3.29
Total 2022			96						$	2.45					$	2.88

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Natural Gas Basis Protection Swaps
			Volume (Bcf)						Avg. NYMEX plus/(minus)
Q2 2021(a)			50						$	(0.66)
Q3 2021			50						$	(0.78)
Q4 2021			34						$	(0.33)
Total 2021			134						$	(0.62)
Total 2022			65						$	(0.44)
Total 2023			23						$	0.76

____________________________________________

(a)Includes amounts settled in April and May 2021.

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NON-GAAP FINANCIAL MEASURES

As a supplement to the financial results prepared in accordance with U.S. GAAP, Chesapeake’s quarterly earnings releases contain certain financial measures that are not prepared or presented in accordance with U.S. GAAP. These non-GAAP financial measures include Adjusted Net Income (Loss) Attributable to Chesapeake, Adjusted EBITDAX, Free Cash Flow and Net Debt. A reconciliation of each financial measure to its most directly comparable GAAP financial measure is included in the tables below.

These financial measures are non-GAAP and should not be considered as an alternative to, or more meaningful than, net income (loss), earnings (loss) per common share or cash flow provided by operating activities prepared in accordance with GAAP.

Chesapeake believes that the non-GAAP measures presented, when viewed in combination with its financial measures prepared in accordance with GAAP, provide useful information as they exclude certain items management believes affects the comparability of operating results. Management believes these adjusted financial measures are a meaningful adjunct to earnings and cash flows calculated in accordance with GAAP because (a) management uses these financial measures to evaluate the company’s trends and performance relative to other oil and natural gas producing companies, (b) these financial measures are comparable to estimates provided by securities analysts, and (c) items excluded generally are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provide by the company generally excludes information regarding these types of items.

Because not all companies use identical calculations, Chesapeake’s non-GAAP measures may not be comparable to similar titled measures of other companies.

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RECONCILIATION OF ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE (unaudited)

						Successor															Predecessor
						Period from February 10, 2021 through March 31, 2021															Period from January 1, 2021 through February 9, 2021												Three Months Ended March 31, 2020
						$						$/Share									$						$/Share						$						$/Share
($ in millions, except per share data)
Net income (loss) available to common stockholders (GAAP)						$	295					$	3.01								$	5,383					$	550.35					$	(8,319)					$	(852.97)
Effect of dilutive securities						—						(0.26)									—						(14.84)						—						—
Diluted income (loss) available to common stockholders (GAAP)						$	295					$	2.75								$	5,383					$	534.51					$	(8,319)					$	(852.97)
Adjustments:
Unrealized (gains) losses on oil, natural gas and NGL derivatives						(113)						(1.05)									369						36.64						(729)						(74.75)
Separation and other termination costs						—						—									22						2.18						5						0.51
Gains on sales of assets						(4)						(0.04)									(5)						(0.50)						—						—
Other operating expense (income)						2						0.02									(12)						(1.19)						68						6.97
Impairments						—						—									—						—						8,522						873.78
Exploration expense - impairment of unproved properties						—						—									—						—						272						27.89
Noncontrolling interests - impairment of unproved properties						—						—									—						—						(16)						(1.64)
Gains on purchases or exchanges of debt						—						—									—						—						(63)						(6.46)
Reorganization items, net						—						—									(5,569)						(552.97)						—						—
Other						(21)						(0.20)									—						—						23						2.36
Tax effect of adjustments(a)						—						—									(57)						(5.66)						(11)						(1.13)
Adjusted net income (loss) available to common stockholders (Non-GAAP)						159						1.48									131						13.01						(248)						(25.44)
Preferred stock dividends						—						—									—						—						22						2.26
Total adjusted net income (loss) attributable to Chesapeake (Non-GAAP)						$	159					$	1.48								$	131					$	13.01					$	(226)					$	(23.18)

(a)			2021 Predecessor Period includes an income tax benefit of $57 million attributed to deferred income tax effects associated with predecessor accumulated other comprehensive income, eliminated in fresh start accounting. 2020 Predecessor Period includes a deferred tax benefit attributed to the reconciling adjustments using a 0.14% effective tax rate.

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RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDAX (unaudited)

						Successor									Predecessor						Non-GAAP Combined						Predecessor
						Period from February 10, 2021 through March 31, 2021									Period from January 1, 2021 through February 9, 2021						Three Months Ended March 31, 2021						Three Months Ended March 31, 2020
($ in millions)
Net income (loss) (GAAP)						$	295								$	5,383					$	5,678					$	(8,313)
Adjustments:
Interest expense						12									11						23						145
Income tax benefit						—									(57)						(57)						(13)
Depreciation, depletion and amortization						122									72						194						603
Exploration						1									2						3						282
Unrealized (gains) losses on oil, natural gas and NGL derivatives						(113)									369						256						(729)
Separation and other termination costs						—									22						22						5
Gains on sales of assets						(4)									(5)						(9)						—
Other operating expense (income)						2									(12)						(10)						68
Impairments						—									—						—						8,522
Gains on purchases or exchanges of debt						—									—						—						(63)
Reorganization items, net						—									(5,569)						(5,569)						—
Other						(21)									—						(21)						23
Adjusted EBITDAX (Non-GAAP)						$	294								$	216					$	510					$	530

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FREE CASH FLOW

						Successor									Predecessor						Non-GAAP Combined						Predecessor
						Period from February 10, 2021 through March 31, 2021									Period from January 1, 2021 through February 9, 2021						Three Months Ended March 31, 2021						Three Months Ended March 31, 2020
($ in millions)
Net cash provided by (used in) operating activities (GAAP)						$	409								$	(21)					$	388					$	397
Cash paid for reorganization items, net						18									66						84						—
Capital expenditures						(77)									(66)						(143)						(518)
Free cash flow (Non-GAAP)						$	350								$	(21)					$	329					$	(121)

NET DEBT

						Successor
						March 31, 2021
($ in millions)
Total debt (GAAP)						$	1,262
Premiums and issuance costs on debt						(41)
Principal amount of debt						1,221
Cash and cash equivalents						(340)
Net debt (Non-GAAP)						$	881

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