Chesapeake Energy (CHK)

on its 9.7 Million Net Acre U.S. Onshore Leasehold Position

OKLAHOMA CITY, OKLAHOMA, JULY 27, 2006 – Chesapeake Energy Corporation (NYSE:CHK) today reported financial and operating results for the second quarter of 2006. For the quarter, Chesapeake generated net income available to common shareholders of $332.1 million ($0.82 per fully diluted common share), operating cash flow of $914.2 million (defined as cash flow from operating activities before changes in assets and liabilities) and ebitda of $1.029 billion (defined as net income before income taxes, interest expense, and depreciation, depletion and amortization expense) on revenue of $1.584 billion and production of 142.7 billion cubic feet of natural gas equivalent (bcfe). For the quarter, ebitda and net income per fully diluted common share increased 77% and 58% over the 2005 second quarter, respectively.

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The company’s 2006 second quarter net income available to common shareholders and ebitda include various items that are typically not included in published estimates of the company’s financial results by certain securities analysts. Such items and their after-tax effects on 2006 second quarter reported results are described as follows:

Excluding the above-mentioned items and giving effect to common shares issued for preferred shares during the quarter, Chesapeake’s net income to common shareholders in the second quarter of 2006 would have been $339.8 million ($0.82 per fully diluted common share) and ebitda would have been $1.001 billion. The foregoing items do not affect the calculation of operating cash flow. For the quarter, adjusted ebitda and adjusted net income per fully diluted common share increased 77% and 64% over the 2005 second quarter. A reconciliation of operating cash flow, ebitda, adjusted ebitda and adjusted net income to comparable financial measures calculated in accordance with generally accepted accounting principles is presented on pages 18-21 of this release.