OKLAHOMA CITY, June 22, 2022 /PRNewswire/ — Chesapeake Energy Corporation (NASDAQ:CHK) today announced that its board of directors has doubled its previously announced buyback program authorization from $1 billion until $2 billion in aggregate value of its common stock and/or warrants through the end of 2023. To date, under its previously authorized program, Chesapeake has repurchased approximately 5.4 million shares ordinary at an average price of around $89 per share.

Nick Dell‘Osso, Chairman and Chief Executive Officer of Chesapeake, said, “We strongly believe that our stock is undervalued and we are pleased to announce today significant progress in our buyback program. Double our redemption authorization to a total of $2 billion, in conjunction with our commitment to our base and variable dividend program, underscores our confidence in our ability to generate sustainable free cash flow and our commitment to shareholder returns. Our disciplined capital allocation strategy generates best-in-class cash-per-share returns and highlights the attractive value of our stocks.”

The redemption authorization allows Chesapeake to make redemptions on a discretionary basis as determined by management. Acquisitions under this repurchase authorization may be made through open market transactions or negotiated over-the-counter. This redemption authorization does not obligate Chesapeake to acquire any particular amount of common stock or warrants, and may be modified, extended, suspended or discontinued at any time without notice.

Based at Oklahoma CityChesapeake Energy Corporation’s (NASDAQ:CHK) operations are focused on the discovery and responsible development of its vast and geographically diverse resource base of onshore unconventional oil and gas assets in United States.

Forward-looking statements

This press release and the accompanying outlook include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements other than statements of historical facts. They include statements that give our current expectations, management’s outlook or expectations of future events, expected base and variable dividends, share buybacks, the expected growth trajectory of natural gas and oil, projected cash flow and liquidity, our ability to improve our cash flow and flexibility, dividend plans, future production and commodity mix, plans and targets for future operations, ESG initiatives, ability of our people, portfolio strength and operational leadership to create long-term value, and the assumptions on which these statements are based. Although we believe that the expectations and forecasts reflected in the forward-looking statements are reasonable, we cannot guarantee that they will prove to be correct. They may be affected by inaccurate or changed assumptions or by known or unknown risks and uncertainties.

Factors that could cause actual results to differ materially from expected results include those described under “Risk Factors” in Item 1A of our Annual Report on Form 10-K and any updates to such factors in Chesapeake’s subsequent quarterly reports on Form 10-Q. or current reports on Form 8-K (available at https://www.chk.com/investors/sec-filings). These risk factors include: the impact of the COVID-19 pandemic and its effects on the company’s business, financial condition, employees, contractors and suppliers, and global oil demand and natural gas and in the US and global financial markets; volatility in oil, natural gas and NGL prices; the limits that our level of indebtedness may have on our financial flexibility; our inability to access capital markets on favorable terms; the availability of cash flow from operations and other funds to fund cash dividends, fund reserve replacement costs or meet our debt obligations; write-downs in the carrying value of our oil and gas assets due to low commodity prices; our ability to replace reserves and maintain production; the uncertainties inherent in estimating quantities of oil, natural gas and NGL reserves and projecting future production rates and the amount and timing of development expenditures; our ability to generate profits or achieve targeted results in drilling and well operations; lease terms expiring before production can be established; commodity derivatives activities resulting in lower realized prices on oil, natural gas and NGL sales; the need to secure derivative liabilities and the inability of counterparties to honor their obligations; adverse developments or losses resulting from pending or future litigation and regulatory proceedings, including royalty claims; costs incurred in response to market conditions; drilling and operating risks and resulting liabilities; the effects of environmental laws and regulations on our business; legislative and regulatory initiatives further regulating hydraulic fracturing; our need to ensure an adequate supply of water for our drilling operations and to dispose of or recycle used water; the impacts of potential legislative and regulatory measures relating to climate change; federal and state tax proposals affecting our industry; potential regulation of over-the-counter derivatives limiting our ability to hedge against fluctuations in commodity prices; competition in the oil and gas exploration and production industry; deterioration in general economic, business or industry conditions; negative public perceptions of our industry; limited control over properties that we do not operate; pipeline and gathering system capacity constraints and transportation disruptions; terrorist activities and cyberattacks negatively impacting our operations; and a disruption of operations at our head office due to a catastrophic event.

In addition, disclosures regarding the estimated contribution of derivative contracts to our future operating results are based on market information as of a specific date. These market prices are subject to significant volatility. Our production forecast also depends on numerous assumptions, including estimates of the rates of decline in production from existing wells and the results of future drilling activities. We caution you not to place undue reliance on our forward-looking statements, which speak only as of the date of this press release, and we undertake no obligation to update the information provided in this press release, except as required by law. applicable so requires. Additionally, this press release contains urgent information that reflects management’s best judgment only as of the date of this press release.

Brad Sylvester, CFA (405) 935-8870 [email protected] Gordon Pennoyer (405) 935-8878 [email protected]

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SOURCE Chesapeake Energy Corporation