Chesapeake Energy 2005 Annual Report Download - page 5

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•Was one of the top financial and
operating performers among
exploration and production
companies;
•Increased average daily produc-
tion 30% to 1,284 mmcfe and
delivered 12% organic produc-
tion growth;
•Increased proved reserves
by 53% to 7.5 tcfe through both
acquisitions and the drillbit;
•Replaced 659% of its produc-
tion, with a drillbit finding and
development cost of $1.74 per
mcfe and a total reserve replace-
ment cost of $2.40 per mcfe;
•Was the most active driller of
new wells in the U.S., drilling
902 operated wells and partici-
pating in another 1,066 non-
operated wells, utilizing an
average rig count of 73 operated
rigs and 66 non-operated rigs;
•Was one of the most active
consolidators in the industry,
investing $4.9 billion in acquisi-
tions of oil and gas properties
for the year and $10.3 billion
since 1998;
•Increased its industry leading
inventories of U.S. onshore
acreage and 3-D seismic data
to 7.9 million net acres and 11.6
million acres, respectively;
•More than doubled its market
capitalization and enterprise
value to $14 billion and $20
billion, respectively; and
•Generated a 94% total return
to common shareholders and
increased the total return to
common shareholders since its
IPO in 1993 to nearly 2,300%.
IN 2005, CHESAPEAKE:
$2.38
153%
$10.12
325% $6.61
-35%
$7.74
17%
$13.58
75%
$16.50
22%
$31.73
92%
$0.94
-87%
$7.50
-73%
$27.41
151%
$10.92
217%
$3.45
563%*
1376/93
142 3%*6/94
243 71%6/95
425 75%6/96
403 -5%6/97
448 11%12/97
1,091 143%12/98
1,206 10%12/99
1,355 12%12/00
1,780 31%12/01
2,205 24%12/02
3,169 44%
12/03
4,902 55%12/04
7,521 53%12/05
126/93
28 134%*6/94
88 215%6/95
164 88%6/96
215 31%6/97
209 -3%12/97
357 71%12/98
366 2%12/99
367 0%12/00
442 21%12/01
497 12%12/02
735 48%12/03
991 35%12/04
1,284 30%12/05
2.066/93
2.13 3%*6/94
1.63 -23%6/95
2.18 34%6/96
2.65 5%12/97
2.11 -20%12/98
2.27 8%12/99
3.88 71%12/00
4.26 10%12/01
3.22 -24%12/02
5.38 67%12/03
6.13 14%12/04
8.64 41%12/05
2.53 16%6/97
* % change compared to prior period.
PRODUCTION GROWTH IN MMCFE PER DAY
PROVED RESERVES GROWTH IN BCFE
AVERAGE NYMEX NATURAL GAS PRICES $ PER MMBTU
05040302010099989796959493
CHESAPEAKE’S STOCK PRICE DECEMBER 31, SPLIT ADJUSTED
$0.52