Chesapeake Energy 2006 Annual Report Download - page 8

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6
Chesapeake Energy Corporation 2006 Annual Report
Growing concern about climate change will create many opportunities
for Chesapeake to promote the substantial environmental benefits of
clean-burning natural gas, thereby enhancing the future value of the
company’s vast natural gas reserves.
Throughout the year, Chesapeake delivered consistently superior operational and financial results and steadily increased the
company’s net asset value per share. Unfortunately, our stock price decreased 8% during the year after having increased 92% in
2005. Against the backdrop of extreme volatility in natural gas markets that saw prices decline from near $11 per mmbtu at the
beginning of the year to a low of just above $4 per mmbtu in the fall, the equity markets were unwilling to reward Chesapeake’s
strong operational and financial achievements in 2006.
Over time, however, the stock market has kept pace with the company’s financial and operational performance (Chesapeake’s
stock price is up 2,100% in our 14 years as a public company) and we look forward to improved stock price performance in 2007
and the years ahead. We expect another terrific year of value creation this year through the continued execution of our simple
and focused business strategy, the safe location of our assets onshore in the U.S. and the predictable base of production we generate