Chesapeake Energy Profile
Chesapeake Energy Corporation (Chesapeake) operates as an independent exploration and production company.
The company engages in the acquisition, exploration and development of properties to produce natural gas, oil and NGL from underground reservoirs. The company owns a large portfolio of onshore U.S. unconventional natural gas assets, including interests in natural gas wells.
Business Strategy
The company’s business strategy is to create shareholder value through the responsible development of the company’s significant resource plays, while continuing to be a leading provider of affordable, reliable, lower carbon energy to markets in need.
Operating Areas
The company focuses its acquisition, exploration, development and production efforts in the geographic operating areas described below.
Marcellus - Northern Appalachian Basin in Pennsylvania.
Haynesville - Haynesville/Bossier Shales in Northwestern Louisiana.
Marketing
The principal function of the company’s marketing operations is to provide natural gas, oil and NGL marketing services, including commodity price structuring, securing and negotiating of gathering, hauling, processing and transportation services, contract administration and nomination services for the company and other interest owners in Chesapeake-operated wells. The marketing operations also provide other services for the company’s exploration and production activities, including services to enhance the value of natural gas and oil production by aggregating volumes sold to various intermediary markets, end markets and pipelines.
The company has entered into long-term gathering, processing, and transportation contracts with various parties that require the company to deliver fixed, determinable quantities of production over specified periods of time.
As of December 31, 2023, the company had delivery commitments for a total of approximately 3,100 billion cubic feet over the next 10 years. These delivery commitments vary each year, and the company expects to fulfill these commitments primarily with production from the company’s proved developed reserves.
Major Customers
For the year ended December 31, 2023, sales to Valero Energy Corporation and Shell Energy North America accounted for approximately 17% and 10%, respectively, of total revenues.
Government Regulation
All of the company’s operations are conducted onshore in the United States. Certain of the company’s U.S. natural gas and oil leases are granted or approved by the federal government and administered by the U.S. Department of the Interior.
History
Chesapeake Energy Corporation was founded in 1989. The company was incorporated in 1996.
