Company Reports 2009 Fourth Quarter Net Loss to Common Shareholders of $530 Million, or $0.84 per Fully Diluted Common Share, on Revenue of $2.2 Billion; Adjusted Net Income Available to Common Shareholders Was $490 Million, or $0.77 per Fully Diluted Common Share

2009 Full Year Net Loss to Common Shareholders Was $5.9 Billion, or $9.57 per Fully Diluted Common Share, on Revenue of $7.7 Billion; Adjusted Net Income Available to Common Shareholders Was $1.6 Billion, or $2.55 per Fully Diluted Common Share

2009 Fourth Quarter Production of 2.6 Bcfe per Day Increases 13% Over 2008 Fourth Quarter Production; 2009 Full Year Production of 2.5 Bcfe per Day Increases 8% Over 2008 Full Year Production

Chesapeake Energy Corporation (NYSE:CHK) today announced financial results for the 2009 fourth quarter and full year. For the 2009 fourth quarter, Chesapeake reported a net loss to common shareholders of $530 million ($0.84 per fully diluted common share) and operating cash flow (defined as cash flow from operating activities before changes in assets and liabilities) of $1.212 billion on revenue of $2.222 billion and production of 241 billion cubic feet of natural gas equivalent (bcfe). For the 2009 full year, Chesapeake reported a net loss to common shareholders of $5.853 billion ($9.57 per fully diluted common share) and operating cash flow of $4.333 billion on revenue of $7.702 billion and production of 906 bcfe.

The company''s 2009 fourth quarter and full year results include a realized natural gas and oil hedging gain of $544 million and $2.346 billion, respectively. The results also include various items that are typically not included in published estimates of the company''s financial results by certain securities analysts. Excluding the items detailed below, for the 2009 fourth quarter, Chesapeake reported adjusted net income to common shareholders of $490 million ($0.77 per fully diluted common share) and adjusted ebitda of $1.256 billion. For the 2009 full year, Chesapeake generated adjusted net income to common shareholders of $1.585 billion ($2.55 per fully diluted common share) and adjusted ebitda of $4.407 billion. The excluded items and their effects on 2009 fourth quarter and full year reported results are detailed as follows:

• a net non-cash unrealized after-tax mark-to-market loss of $126 million for 2009 fourth quarter and $311 million for the full year resulting from the company''s natural gas, oil and interest rate hedging programs;
• a non-cash after-tax impairment charge of $875 million for the 2009 fourth quarter and $6.875 billion for the full year related to the carrying value of natural gas and oil properties under the full-cost method of accounting;
• a non-cash combined after-tax impairment charge of $5 million for the 2009 fourth quarter and $80 million for the full year related primarily to certain midstream assets contributed to the newly formed midstream joint venture with Global Infrastructure Partners;
• a non-cash after-tax impairment charge of $102 million for the full year related to certain investments;
• a non-cash after-tax charge of $14 million for the 2009 fourth quarter and $25 million for the full year on exchanges of certain of the company''s contingent convertible senior notes for shares of common stock; and
• a combined after-tax charge of $45 million for the 2009 full year related to restructuring and relocation costs related to the company''s Eastern Division, other workforce reduction costs and losses on the sales of certain gathering systems.

The various items described above do not materially affect the calculation of operating cash flow. A reconciliation of operating cash flow, adjusted ebitda and adjusted net income to comparable financial measures calculated in accordance with generally accepted accounting principles is presented on pages 12 – 16 of this release.

Key Operational and Financial Statistics Summarized

The table below summarizes Chesapeake''s key results during the 2009 fourth quarter and compares them to results during the 2009 third quarter and the 2008 fourth quarter and also compares the 2009 full year to the 2008 full year.

2009 Fourth Quarter Average Daily Production Increases 5% Over 2009 Third Quarter Production and 13% Over 2008 Fourth Quarter Production; 2009 Full Year Average Daily Production Increases 8% Over 2008 Full Year Average Daily Production, Setting Record for 20^th Consecutive Year

As announced on February 16, 2010, Chesapeake''s daily production for the 2009 fourth quarter averaged 2.618 bcfe, an increase of 135 million cubic feet of natural gas equivalent (mmcfe), or 5%, over the 2.483 bcfe produced per day in the 2009 third quarter and an increase of 302 mmcfe, or 13%, over the 2.316 bcfe produced per day in the 2008 fourth quarter. Adjusted for the company''s voluntary production curtailments due to low natural gas prices (approximately 26 mmcfe per day during the 2009 fourth quarter), the company''s volumetric production payment transactions (which combined averaged approximately 96 mmcfe per day during the 2009 fourth quarter) and the estimated impact from various divestitures (which would have averaged approximately 49 mmcfe per day during the 2009 fourth quarter), Chesapeake''s sequential and year-over-year production growth rates would have been 5% and 17%, respectively, after making similar adjustments to prior quarters. Chesapeake''s 2009 fourth quarter average daily production of 2.618 bcfe consisted of 2.440 billion cubic feet of natural gas (bcf) and 29,750 barrels of oil and natural gas liquids (bbls). The company''s 2009 fourth quarter production of 241 bcfe was comprised of 225 bcf (93% on a natural gas equivalent basis) and 2.7 million barrels of oil and natural gas liquids (mmbbls) (7% on a natural gas equivalent basis).

The company''s daily production for the 2009 full year averaged 2.481 bcfe, an increase of 178 mmcfe, or 8%, over the 2.303 bcfe of daily production for the 2008 full year. Adjusted for the company''s voluntary production curtailments due to low natural gas prices (approximately 47 mmcfe per day during the 2009 full year), the company''s volumetric production payment transactions (which combined averaged approximately 157 mmcfe per day during the 2009 full year) and the estimated impact from various divestitures (which would have averaged approximately 193 mmcfe per day during the 2009 full year), Chesapeake''s year-over-year production growth rate would have been 19%, after making similar adjustments to the 2008 full year. Chesapeake''s average daily production for the 2009 full year of 2.481 bcfe consisted of 2.287 bcf and 32,301 bbls. The company''s 2009 full year production of 906 bcfe was comprised of 835 bcf (92% on a natural gas equivalent basis) and 11.8 mmbbls (8% on a natural gas equivalent basis). The 2009 full year was Chesapeake''s 20th consecutive year of sequential production growth. Chesapeake anticipates delivering full-year production growth of approximately 8-10% in 2010 and 15-17% in 2011, net of property divestitures.

Average Realized Prices, Hedging Results and Hedging Positions Detailed

Average prices realized during the 2009 fourth quarter (including realized gains or losses from natural gas and oil derivatives, but excluding unrealized gains or losses on such derivatives), were $6.05 per thousand cubic feet (mcf) and $71.61 per bbl, for a realized natural gas equivalent price of $6.45 per thousand cubic feet of natural gas equivalent (mcfe). Realized gains from natural gas and oil hedging activities during the 2009 fourth quarter generated a $2.42 gain per mcf and a $0.69 gain per bbl for a 2009 fourth quarter realized hedging gain of $544 million, or $2.26 per mcfe. Excluding hedging activity, Chesapeake''s average realized pricing basis differentials to NYMEX during the 2009 fourth quarter were a negative $0.53 per mcf and a negative $5.27 per bbl.

By comparison, average prices realized during the 2008 fourth quarter (including realized gains or losses from natural gas and oil derivatives, but excluding unrealized gains or losses on such derivatives) were $7.13 per mcf and $54.80 per bbl, for a realized natural gas equivalent price of $7.29 per mcfe. Realized gains from natural gas and oil hedging activities during the 2008 fourth quarter generated a $2.25 gain per mcf and a $1.61 gain per bbl for a 2008 fourth quarter realized hedging gain of $446 million, or $2.09 per mcfe. Excluding hedging activity, Chesapeake''s average realized pricing basis differentials to NYMEX during the 2008 fourth quarter were a negative $2.07 per mcf and a negative $5.55 per bbl.

For the 2009 full year, average prices realized (including realized gains or losses from natural gas and oil derivatives, but excluding unrealized gains or losses on such derivatives) were $5.93 per mcf and $58.38 per bbl, for a realized natural gas equivalent price of $6.22 per mcfe. Realized gains and losses from natural gas and oil hedging activities during the 2009 full year generated a $2.77 gain per mcf and a $2.78 gain per bbl for a 2009 full year realized hedging gain of $2.346 billion, or $2.59 per mcfe. Excluding hedging activity, Chesapeake''s average realized pricing basis differentials to NYMEX during the 2009 full year were a negative $0.83 per mcf and a negative $6.20 per bbl.

By comparison, average prices realized during the 2008 full year (including realized gains or losses from natural gas and oil derivatives, but excluding unrealized gains or losses on such derivatives) were $8.09 per mcf and $70.48 per bbl, for a realized natural gas equivalent price of $8.38 per mcfe. Realized gains and losses from natural gas and oil hedging activities during the 2008 full year generated a $0.35 gain per mcf and a $24.56 loss per bbl for a 2008 full year realized hedging loss of $8 million, or $0.01 per mcfe. Excluding hedging activity, Chesapeake''s average realized pricing basis differentials to NYMEX during the 2008 full year were a negative $1.30 per mcf and a negative $4.61 per bbl.

The following tables summarize Chesapeake''s open hedge position through swaps and collars as of February 17, 2010. Depending on changes in natural gas and oil futures markets and management''s view of underlying natural gas and oil supply and demand trends, Chesapeake may either increase or decrease its hedging positions at any time in the future without notice.

Note: Certain open natural gas swap positions include knockout swaps with knockout provisions at prices ranging from $5.50 to $6.75 per mcf covering 15 bcf in 2010, or approximately 3% of the company''s natural gas swap positions in 2010, and $5.75 to $6.50 per mcf covering 24 bcf in 2011, or approximately 33% of the company''s natural gas swap positions in 2011. Certain open natural gas collar positions include three-way collars that include written put options with strike prices ranging from $4.25 to $4.35 per mcf covering 12 bcf in 2010, or approximately 18% of the company''s natural gas collar positions in 2010. Also, certain open oil swap positions include knockout swaps with knockout provisions at a price of $60 per bbl covering 5 mmbbls and 1 mmbbls in 2010 and 2011, respectively, or approximately 52% and 33% of the company''s oil swap positions in 2010 and in 2011, respectively.

As of February 12, 2010, Chesapeake''s natural gas and oil hedging positions with 14 different counterparties had a positive mark-to-market value of approximately $95 million. The company''s realized hedging gains for the 2009 full year were $2.346 billion and since January 1, 2001 have been $4.421 billion.

The company''s updated forecasts for 2010 and 2011 are attached to this release in an Outlook dated February 17, 2010, labeled as Schedule "A," which begins on page 17. This Outlook has been changed from the Outlook dated January 4, 2010, attached as Schedule "B," which begins on page 21, to reflect various updated information.

Company Closes Barnett Shale Joint Venture with Total and Closes Sixth Volumetric Production Payment Transaction

As previously disclosed, on January 26, 2010, Chesapeake and Total E&P USA, Inc., a wholly-owned subsidiary of Total S.A. (NYSE: TOT, FP: FP) ("Total"), closed the $2.25 billion Barnett Shale joint venture transaction, whereby Total acquired a 25% interest in Chesapeake''s upstream Barnett Shale assets. Total paid Chesapeake approximately $800 million in cash at closing and will pay a further $1.45 billion over time by funding 60% of Chesapeake''s share of future drilling and completion expenditures. Chesapeake expects this drilling carry to be funded by year-end 2012. Additionally, on February 5, 2010 the company sold certain Chesapeake-operated long-lived producing assets in East Texas and the Texas Gulf Coast in its sixth volumetric production payment (VPP) transaction for proceeds of $180 million, or $3.95 per mcfe of proved reserves. The assets in the VPP included proved reserves of approximately 45.5 bcfe and current net production of approximately 20 mmcfe per day.

Conference Call Information

A conference call to discuss this release of financial results and the company''s release of its operational results issued on February 16, 2010 has been scheduled for Thursday morning, February 18, 2010, at 9:00 a.m. EST. The telephone number to access the conference call is 913-312-0688 or toll-free 800-930-1344. The passcode for the call is 2347767. We encourage those who would like to participate in the call to dial the access number between 8:50 and 9:00 a.m. EST. For those unable to participate in the conference call, a replay will be available for audio playback from 1:00 p.m. EST on February 18, 2010 through midnight EST on March 4, 2010. The number to access the conference call replay is 719-457-0820 or toll-free 888-203-1112. The passcode for the replay is 2347767. The conference call will also be webcast live on the Internet and can be accessed by going to Chesapeake''s website at www.chk.com in the "Events" subsection of the "Investors" section of our website. The webcast of the conference call will be available on our website for one year.

This press release and the accompanying Outlooks include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.Forward-looking statements give our current expectations or forecasts of future events.They include expected natural gas and oil production and future expenses, assumptions regarding future natural gas and oil prices, planned capital expenditures and anticipated asset acquisitions and sales, projected cash flow and liquidity, business strategy and other plans and objectives for future operations.Disclosures concerning the fair value of derivative contracts and their estimated contribution to our future results of operations are based upon market information as of a specific date.These market prices are subject to significant volatility.We caution you not to place undue reliance on our forward-looking statements, which speak only as of the date of this press release, and we undertake no obligation to update this information.

Factors that could cause actual results to differ materially from expected results are described under "Risk Factors" in our 2008 Form 10-K and 2009 second quarter Form 10-Q filed with the U.S. Securities and Exchange Commission on March 2, 2009 and August 10, 2009, respectively.These risk factors include the volatility of natural gas and oil prices; the limitations our level of indebtedness may have on our financial flexibility; impacts the current economic downturn may have on our business and financial condition; declines in the values of our natural gas and oil properties resulting in ceiling test write-downs; the availability of capital on an economic basis, including planned asset monetization transactions, to fund reserve replacement costs; our ability to replace reserves and sustain production; uncertainties inherent in estimating quantities of natural gas and oil reserves and projecting future rates of production and the amount and timing of development expenditures; exploration and development drilling that does not result in commercially productive reserves; leasehold terms expiring before production can be established; hedging activities resulting in lower prices realized on natural gas and oil sales and the need to secure hedging liabilities; uncertainties in evaluating natural gas and oil reserves of acquired properties and potential liabilities; the negative impact lower natural gas and oil prices could have on our ability to borrow; drilling and operating risks, including potential environmental liabilities; transportation capacity constraints and interruptions that could adversely affect our cash flow; potential increased operating costs resulting from proposed legislative and regulatory changes affecting our operations; and adverse results in pending or future litigation.

Our production forecasts are dependent upon many assumptions, including estimates of production decline rates from existing wells and the outcome of future drilling activity.Although we believe the expectations and forecasts reflected in these and other forward-looking statements are reasonable, we can give no assurance they will prove to have been correct.They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.

Chesapeake Energy Corporation is the second-largest producer of natural gas in the U.S.Headquartered in Oklahoma City, the company''s operations are focused on the development of onshore unconventional and conventional natural gas in the U.S. in the Barnett Shale, Haynesville Shale, Fayetteville Shale, Marcellus Shale, Anadarko Basin, Arkoma Basin, Appalachian Basin, Permian Basin, Delaware Basin, South Texas, Texas Gulf Coast and East Texas regions of the United States.Further information is available at www.chk.com.

SCHEDULE "A"

CHESAPEAKE''S OUTLOOK AS OF FEBRUARY 17, 2010

Years Ending December 31, 2010 and 2011

Our policy is to periodically provide guidance on certain factors that affect our future financial performance. As of February 17, 2010, we are using the following key assumptions in our projections for 2010 and 2011.

The primary changes from our January 4, 2010 Outlook are in italicized bold and are explained as follows:

1) Our production guidance has been increased;

2) Projected effects of changes in our hedging positions have been updated;

3) Certain cost assumptions have been updated;

4) Our rate of DD&A for natural gas and oil has been reduced to reflect our 2009 year-end impairment charge; and

5) Our cash flow projections have been updated, including increased drilling capital expenditures to reflect additional drilling on oil and natural gas liquids rich plays and anticipated cost inflation, partially offset by improved drilling efficiencies.

At December 31, 2009, the company had approximately $2.6 billion of cash and cash equivalents and additional borrowing capacity under its three revolving bank credit facilities.

Commodity Hedging Activities

The company utilizes hedging strategies to hedge the price of a portion of its future natural gas and oil production. These strategies include:

All of our derivative instruments are net settled based on the difference between the fixed-price payment and the floating-price payment, resulting in a net amount due to or from the counterparty.

Commodity markets are volatile, and as a result, Chesapeake''s hedging activity is dynamic. As market conditions warrant, the company may elect to settle a hedging transaction prior to its scheduled maturity date and lock in the gain or loss on the transaction.

Chesapeake enters into natural gas and oil derivative transactions in order to mitigate a portion of its exposure to adverse market changes in natural gas and oil prices. Accordingly, associated gains or losses from the derivative transactions are reflected as adjustments to natural gas and oil sales. All realized gains and losses from natural gas and oil derivatives are included in natural gas and oil sales in the month of related production. In accordance with generally accepted accounting principles, certain derivatives do not qualify for designation as cash flow hedges. Changes in the fair value of these nonqualifying derivatives that occur prior to their maturity (i.e., because of temporary fluctuations in value) are reported currently in the consolidated statement of operations as unrealized gains (losses) within natural gas and oil sales. Changes in the fair value of derivative instruments designated as cash flow hedges, to the extent effective in offsetting cash flows attributable to hedged risk, are recorded in other comprehensive income until the hedged item is recognized in earnings. Any change in fair value resulting from ineffectiveness is recognized currently in natural gas and oil sales.

The company currently has the following open natural gas swaps in place and also has the following gains from lifted natural gas trades:

The company currently has the following open natural gas collars in place:

The company currently has the following natural gas written call options in place:

The company has the following natural gas basis protection swaps in place:

The company also has the following crude oil swaps in place:

Note: Not shown above are written call options covering 1 mmbbls of oil production in 2010 at a weighted average price of $101.25 per bbl for a weighted average discount of $1.93 per bbl and 5 mmbls of oil production in 2011 at a weighted average price of $101.54 per bbl for a weighted average premium of $3.29 per bbl.

SCHEDULE "B"
CHESAPEAKE''S OUTLOOK AS OF JANUARY 4, 2010
(PROVIDED FOR REFERENCE ONLY)
NOW SUPERSEDED BY OUTLOOK AS OF FEBRUARY 17, 2010

Years Ending December 31, 2010 and 2011

Our policy is to periodically provide guidance on certain factors that affect our future financial performance. As of January 4, 2010, we are using the following key assumptions in our projections for 2010 and 2011.

The primary changes from our November 2, 2009 Outlook are in italicized bold and are explained as follows:

At December 31, 2009, the company had approximately $2.5 billion of cash and cash equivalents and additional borrowing capacity under its three revolving bank credit facilities.

Commodity Hedging Activities

The company utilizes hedging strategies to hedge the price of a portion of its future natural gas and oil production. These strategies include:

All of our derivative instruments are net settled based on the difference between the fixed-price payment and the floating-price payment, resulting in a net amount due to or from the counterparty.

Commodity markets are volatile, and as a result, Chesapeake''s hedging activity is dynamic. As market conditions warrant, the company may elect to settle a hedging transaction prior to its scheduled maturity date and lock in the gain or loss on the transaction.

Chesapeake enters into natural gas and oil derivative transactions in order to mitigate a portion of its exposure to adverse market changes in natural gas and oil prices. Accordingly, associated gains or losses from the derivative transactions are reflected as adjustments to natural gas and oil sales. All realized gains and losses from natural gas and oil derivatives are included in natural gas and oil sales in the month of related production. Pursuant to ASC 815, certain derivatives do not qualify for designation as cash flow hedges. Changes in the fair value of these nonqualifying derivatives that occur prior to their maturity (i.e., because of temporary fluctuations in value) are reported currently in the consolidated statement of operations as unrealized gains (losses) within natural gas and oil sales. Following provisions of ASC 815, changes in the fair value of derivative instruments designated as cash flow hedges, to the extent effective in offsetting cash flows attributable to hedged risk, are recorded in other comprehensive income until the hedged item is recognized in earnings. Any change in fair value resulting from ineffectiveness is recognized currently in natural gas and oil sales.

The company currently has the following open natural gas swaps in place and also has the following gains from lifted natural gas trades: