Chesapeake Energy Corporation Further Curtails Natural Gas Production in Current Low Price Environment

OKLAHOMA CITY--(Business Wire)--
Chesapeake Energy Corporation (NYSE:CHK) today announced it has elected to
curtail approximately 400 million cubic feet (mmcf) per day of its gross natural
gas production due to continued low wellhead prices. The reduction includes the
200 mmcf per day curtailment of natural gas production previously announced on
March 2, 2009. Chesapeake has resumed 7,000 barrels per day of oil production
from previously curtailed oil wells.

The company`s 400 mmcf per day curtailment represents approximately 13% of
Chesapeake`s current gross operated natural gas production capacity. The wells
that have been curtailed are primarily located in the Mid-Continent and Barnett
Shale regions. Until natural gas prices strengthen, the company plans to limit
production from most newly completed wells in the Barnett and Fayetteville
shales to 2 mmcf per day and in the Marcellus and Haynesville shales to 5 and 10
mmcf per day, respectively, in addition to the approximate 400 mmcf per day
curtailment.

The company is able to make this decision because of its strong financial
condition and extensive natural gas hedging positions. In addition, because of
the steeply declining production profile of new natural gas wells and the upward
trending slope of the NYMEX natural gas futures curve, Chesapeake believes
deferring production and revenue to future periods with higher natural gas
prices creates greater shareholder value than selling production into the
current unusually low priced natural gas market.

The following tables and graphs illustrate the company`s analytical support for
deferring production in the two areas where it has focused its curtailments to
date, the Mid-Continent and Barnett Shale regions. Each analysis compares an
estimated base case production and cash flow profile to a deferred case
production and cash flow profile assuming full curtailment for two months based
on NYMEX forward strip natural gas prices and regional forward basis estimates
as of April 14, 2009.

Mid-Continent: 2 Month Deferral Economics
Deferred Volume (bcf) 11.8
Incremental Pre-tax PV0 (millions) (1) $31.5
Incremental Pre-tax PV10 (millions) (2) $10.2
Rate of Return (3) 23%
Payout (months) (4) 36
Discounted Payout (months) (5) 47

See Graph 1: Mid-Continent Curtailment Production Profiles
See Graph 2: Mid-Continent Forward Price Estimates
See Graph 3: Mid-Continent Estimated Incremental Cash Flow Profile

Barnett: 2 Month Deferral Economics
Deferred Volume (bcf) 11.1
Incremental Pre-tax PV0 (millions) (1) $19.3
Incremental Pre-tax PV10 (millions) (2) $7.7
Rate of Return (3) 29%
Payout (months) (4) 24
Discounted Payout (months) (5) 30

See Graph 4: Barnett Curtailment Production Profiles
See Graph 5: Barnett Forward Price Estimates
See Graph 6: Barnett Estimated Incremental Cash Flow Profile

Management Comments

Aubrey K. McClendon, Chesapeake`s Chief Executive Officer, commented, "As a
result of recession-related reduced demand and abundant U.S. production, natural
gas prices have remained soft in recent months. However, we believe
substantially lower drilling activity and natural reservoir depletion will work
to rebalance U.S. natural gas markets by late 2009 or in early 2010. This
recovery is already partially reflected in the NYMEX natural gas forward strip,
but we believe it will become much more pronounced in the months to come as U.S.
natural gas production declines begin to accelerate and the economy begins to
recover. Our analysis indicates that the incremental returns for deferring
revenue to future periods are very attractive and may in fact become exceptional
once demand recovers and the NYMEX curve increases.

"We believe that Chesapeake`s strong financial condition and extensive hedges
provide us with the operational and financial flexibility to make prudent
natural gas revenue maximization choices. We will continue to work to protect
and enhance shareholder value, particularly in the current challenging economic
environment. Additionally, Chesapeake and other producers remain well positioned
to readily meet increased market demand for natural gas as the economy recovers
and as power generation and transportation markets further expand their use of
natural gas in the years to come."

(1) Estimated pre-tax undiscounted future cash flow

(2) Estimated pre-tax future cash flow discounted at 10%

(3) Estimated rate of return from investment of forgone near-term cash flow in
exchange for incremental longer-term cash flow

(4) Number of months to recoup deferred revenue using pre-tax undiscounted
future cash flow

(5) Number of months to recoup deferred revenue using pre-tax future cash flow
discounted at 10%

Chesapeake Energy Corporation is the largest independent producer of natural gas
in the U.S.Headquartered in Oklahoma City, the company's operations are focused
on exploratory and developmental drilling and corporate and property
acquisitions in the Barnett Shale, Haynesville Shale, Fayetteville Shale,
Marcellus Shale, Anadarko Basin, Arkoma Basin, Appalachian Basin, Permian Basin,
Delaware Basin, South Texas, Texas Gulf Coast and East Texas regions of the
United States.Further information is available at www.chk.com.

This press release includes "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 give our current expectations
or forecasts of future events, including future natural gas and oil market
conditions and prices and the recovery of curtailed volumes after resumption of
production at the times and in the amounts projected. Although we believe the
expectations and forecasts reflected in these and other forward-looking
statements are reasonable, we can give no assurance they will prove to have been
correct. They can be affected by inaccurate assumptions or by known or unknown
risks and uncertainties. Factors that could cause the company's actual results
to differ materially from expected results are described in "Risk Factors" in
Item 1A of its 2008 annual report on Form 10-K filed with the U.S. Securities
and Exchange Commission on March 2, 2009.These risk factors include the
volatility of natural gas and oil prices and the impacts that global financial
conditions may have on the business and financial condition of Chesapeake and on
the natural gas and oil industry.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 this information.

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Chesapeake Energy Corporation
Investor Contact:
Jeffrey L. Mobley, CFA, 405-767-4763
Senior Vice President - Investor Relations and Research
jeff.mobley@chk.com
or
Media Contact:
Jim Gipson, 405-935-1310
Director - Media Relations
jim.gipson@chk.com

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