Chesapeake Energy (CHK)

Burn Rate

For 2006 through 2008, the Company’s three-year average annual stock usage rate or “burn rate” was 1.56%, excluding the one-time awards of restricted stock to employees (other than our CEO and CFO) under our 2006 Long Term Incentive Program, and was 2.56% when such awards are included in the burn rate calculation. Burn rate is defined generally by RiskMetrics Group (formerly Institutional Shareholder Services) as the total number of equity awards granted in a given year divided by the number of common shares outstanding. Our burn rate in 2008 was 1.68%. We calculate our burn rate by applying a factor of one and a half (1.5) to restricted stock awards and base the calculation on the total number of common shares outstanding at the end of each year as reported in our year-end financial statements. RiskMetrics may apply a higher factor to our restricted stock awards in calculating our burn rate based on its assessment of our annual stock price volatility.

Burn Rate

For 2005 through 2007, the Company’s three-year average annual stock usage rate or “burn rate” was 2.06%, excluding the awards under the 2006 Program and was 3.40% when such awards are included in the burn rate calculation. Burn rate is defined generally by RiskMetrics Group (formerly Institutional Shareholder Services) as the total number of equity awards granted in a given year divided by the number of common shares outstanding. Our burn rate in 2007, excluding the 2006 program awards, was 2.10%. We calculate our burn rate by applying a factor of two (2) to restricted stock awards and base the calculation on the total number of common shares outstanding at the end of each year as reported in our year-end financial statements. RiskMetrics may apply a higher factor to our restricted stock awards in calculating our burn rate based on its assessment of our annual stock price volatility.

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