Chesapeake Energy (CHK)

Investing Activities

Cash used in investing activities decreased to $2.367 billion during the Current Quarter, compared to $2.692 billion during the Prior Quarter. We have been reducing our drilling program since the third quarter of 2008 and our leasehold and property acquisitions expenditures in the Current Quarter were 72% lower than in the Prior Quarter. The following table shows our cash used in (provided by) investing activities during these periods:

Due to current general economic conditions, decreases in natural gas prices and concerns about an oversupply of natural gas in the U.S. market, we and other exploration and production companies have significantly decreased budgets for natural gas and oil investing activities in 2009. In connection with our reduced budget for acquisitions, we are using our common stock for some or all of the consideration for certain transactions. In December 2008, we registered 25 million shares of common stock that we may offer and issue to acquire assets (including mineral interests), businesses or securities of other companies. As of May 8, 2009, we had issued approximately 17.5 million shares of common stock for leasehold acquisitions and anticipate we may issue the remaining shares over the course of 2009.

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Investing Activities

Cash used in investing activities increased to $8.201 billion during the Current Period, compared to $6.488 billion during the Prior Period. We have continued our active drilling program and our acquisitions are focused on leasehold and property acquisitions needed for planned natural gas and oil development. Our investing activities during the Current Period and the Prior Period reflect our increasing focus on converting our resource inventory into production, redeploying our capital by selling natural gas and oil properties with lower rates of return and increasing our investment in properties with higher return potential, and investing in drilling rigs, midstream systems, compressors and other property and equipment to support our natural gas and oil exploration, development and production activities. We have significantly decreased our budget for natural gas and oil investing activities in 2009. The following table shows our cash used in (provided by) investing activities during these periods:

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Investing Activities

Cash used in investing activities increased to $6.329 billion during the Current Period, compared to $4.003 billion during the Prior Period. We have continued our active drilling program and our acquisitions are focused on leasehold and property acquisitions needed for planned natural gas and oil development. Our investing activities during the Current Period and the Prior Period reflect our increasing focus on converting our resource inventory into production, redeploying our capital by selling natural gas and oil properties with lower rates of return and increasing our investment in properties with higher return potential, and investing in drilling rigs, midstream systems, compressors and other property and equipment to support our natural gas and oil exploration, development and production activities. The following table shows our cash used in (provided by) investing activities during these periods:

Investing Activities

Cash used in investing activities increased to $2.675 billion during the Current Quarter, compared to $1.869 billion during the Prior Quarter. Over the past year, we have continued our active drilling program and shifted our acquisition strategy from significant stock and asset acquisitions to targeted leasehold and property acquisitions needed for planned natural gas and oil development. Our investing activities during the Current Quarter and the Prior Quarter reflect our increasing focus on converting our resource inventory into production, redeploying our capital by selling natural gas and oil properties with lower rates of return and increasing our investment in properties with higher return potential, and investing in drilling rigs, midstream systems, compressors and other property and equipment to support our natural gas and oil exploration, development and production activities. The following table shows our cash used in (provided by) investing activities during these periods:

Investing Activities

Cash used in investing activities decreased to $6.488 billion during the Current Period, compared to $6.668 billion during the Prior Period. Over the past year, we have accelerated our drilling program and shifted our acquisition strategy from significant stock and asset acquisitions to targeted leasehold and property acquisitions needed for planned oil and natural gas development. Our investing activities during the Current Period and the Prior Period reflect our increasing focus on converting our resource inventory into production as well as elements of our new financing plan. The following table shows our cash used in (provided by) investing activities during these periods ($ in millions):

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