Chesapeake Energy Corporation (NYSE:CHK) today announced a listing of major topics that will be addressed at its 2008 Investor and Analyst Meeting that will be held in Oklahoma City, OK on October 15 and 16, 2008.

Financial Topics

Sale of Leasehold and Producing Properties: Chesapeake continues to make progress in its previously announced plans to sell certain leasehold and producing properties to build its cash reserves during the ongoing financial market crisis. The company is planning to generate cash proceeds of $2.5-3.0 billion in the 2008 fourth quarter from the sale of a 25% interest in the Marcellus Shale, the sale of leasehold and associated production in three other areas and the sale of its fourth volumetric production payment (VPP), all of which are currently underway. In addition, the company is also engaged in active discussion with multiple parties about an investment in its midstream operations. Raising additional funds from asset sales in this environment will provide the company with more financial flexibility and the ability to either reduce debt more than previously planned or to potentially repurchase common stock.

Capital Spending: In response to lower natural gas prices, the company intends to further reduce its capital expenditures budget by approximately $1.5 billion in 2009 and 2010 through a combination of reduced drilling and lower leasehold expenditures. These amounts are incremental to the $3.2 billion reduction in capital expenditures the company announced on September 22, 2008 and further cuts for the 2008 fourth quarter are underway.

Corporate Liquidity: To ensure that its revolving credit facility could be fully utilized in these turbulent economic times, the company borrowed the remaining capacity under its facility at the end of the 2008 third quarter and invested the cash proceeds in short-term U.S. Treasury and other highly liquid securities. As a result, on September 30, 2008, the company had cash and cash equivalents on hand of approximately $1.5 billion. All 36 lenders that participate in Chesapeake’s revolving credit facility fully funded their commitment, with the exception of Lehman Brothers, which has filed for bankruptcy protection and did not fund its $11 million share of the advance. The company’s revolving credit facility matures in November 2012 and its first maturity of senior unsecured notes is in July 2013.

Assuming the successful completion of the planned asset sales and as a result of the additional capital expenditure reductions discussed above, Chesapeake anticipates generating excess cash of approximately $1.5-2.0 billion in the 2008 fourth quarter and approximately $1.0-1.5 billion in each of 2009 and 2010. The company’s goal is to end 2008 with approximately $2.5-3.0 billion of cash on hand.

Debt Covenants: Chesapeake is in compliance with all of its debt covenants. The covenants under the company’s revolving bank credit facility require that the company maintain a “Consolidated Indebtedness to Consolidated Total Capitalization Ratio” (debt to cap ratio) of less than 0.70:1 and a “Consolidated Indebtedness to EBITDA Ratio” (debt to EBITDA ratio) of less than 3.75:1. At June 30, 2008 the company’s debt to cap ratio was 0.57:1 and its debt to EBITDA ratio was 2.05:1. The ratios for these metrics at September 30, 2008 were similar to or better than levels at June 30, 2008.

Hedging: For the 2008 fourth quarter and for the full years 2009 and 2010, Chesapeake has hedged through swaps and collars approximately 81%, 72% and 46% of its expected natural gas and oil production at average prices of $9.50, $9.63 and $9.89 per thousand cubic feet of natural gas equivalent (mcfe), respectively. In addition, Chesapeake has collected approximately $375 million in premiums for written calls with strike prices above current market prices for its natural gas and oil production in the 2008 fourth quarter and for the full years 2009 and 2010.