Chesapeake Energy (CHK)

Average Prices Realized, Hedging Results and Hedging Positions Detailed

Average prices realized during the 2006 second quarter (including realized gains or losses from oil and natural gas derivatives, but excluding unrealized gains or losses on such derivatives) were $58.80 per bbl and $8.04 per mcf, for a realized natural gas equivalent price of $8.20 per mcfe. Chesapeake’s average realized pricing differentials to NYMEX during the second quarter were a negative $6.19 per bbl and a negative $0.84 per mcf. Realized gains and losses from oil and natural gas hedging activities during the quarter generated a $5.71 loss per bbl and a $2.08 gain per mcf, for a 2006 second quarter realized hedging gain of $257.4 million, or $1.80 per mcfe. Chesapeake’s total realized hedging gains in the first half of 2006 were $505.6 million, or $1.81 per mcfe.

Chesapeake has hedged a substantial level of its production through 2008 in order to capture attractive returns from recent acquisitions and to help secure strong margins and profitability on the company’s drilling program. The following tables compare Chesapeake’s hedged production volumes (including only swaps and also including the hedges assumed in the CNR acquisition) as of July 27, 2006 to those as of June 5, 2006.

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Average Prices Realized, Hedging Results and Hedging Positions Detailed

Average prices realized during the 2006 first quarter (including realized gains or losses from oil and natural gas derivatives, but excluding unrealized gains or losses on such derivatives) were $57.12 per bbl and $9.61 per thousand cubic feet (mcf), for a realized natural gas equivalent price of $9.60 per thousand cubic feet of natural gas equivalent (mcfe). Chesapeake’s average realized pricing differentials to NYMEX during the first quarter were a negative $5.04 per bbl and a negative $1.61 per mcf. Realized gains and losses from oil and natural gas hedging activities during the quarter generated a $1.80 loss per bbl and a $2.03 gain per mcf, for a 2006 first quarter realized hedging gain of $248 million, or $1.82 per mcfe.

During the past few weeks, Chesapeake has significantly added to its 2006, 2007 and 2008 oil and natural gas hedging positions previously announced on February 23, 2006. The following tables compare Chesapeake’s hedged production volumes (including only swaps and excluding CNR’s swaps) as of May 1, 2006 to those as of February 23, 2006.

Average Prices Realized and Hedging Results and Hedging Positions Detailed

Average prices realized during the 2005 fourth quarter (including realized gains or losses from oil and gas derivatives, but excluding unrealized gains or losses on such derivatives) were $52.65 per bbl and $8.08 per mcf, for a realized gas equivalent price of $8.14 per mcfe. Chesapeake’s average realized pricing differentials to NYMEX during the fourth quarter were a negative $4.59 per bbl and a negative $2.86 per mcf. Realized losses from oil and natural gas hedging activities during the quarter generated a $2.72 loss per bbl and a $2.28 loss per mcf, for a 2005 fourth quarter realized hedging loss of $275.1 million, or $2.11 per mcfe.

Average prices realized during the full-year 2005 (including realized gains or losses from oil and gas derivatives, but excluding unrealized gains or losses on such derivatives) were $47.77 per bbl and $6.78 per mcf, for a realized gas equivalent price of $6.90 per mcfe. Chesapeake’s average realized pricing differentials to NYMEX during 2005 were a negative $4.29 per bbl and a negative $1.26 per mcf. Realized losses from oil and natural gas hedging activities during the year generated a $4.43 loss per bbl and a $0.87 loss per mcf, for a full-year 2005 realized hedging loss of $401.7 million, or $0.86 per mcfe. This compares to oil and gas hedging gains of $29.1 million realized from 2001-04 and a current mark-to-market gain of approximately $440 million for the company’s oil and gas hedging positions for 2006-09. Chesapeake’s first quarter 2006 realized hedging gain is expected to exceed $215 million based on NYMEX prices as of February 17, 2006.

For investors’ convenience, the following tables compare Chesapeake’s hedged production volumes (through swaps) as of February 23, 2006 to those as of January 17, 2006.