We have built a large inventory of low-risk natural gas and liquids resources which we plan to develop aggressively in the decades ahead. As a result, we will consistently utilize a large and growing amount of oilfield services. This high level of drilling activity will create considerable value for the providers of oilfield services and our strategy is to capture a portion of this value for our shareholders rather than transfer it to third-party vendors. We focus our oilfield services asset investments where we believe services are scarce or have relatively high margins. We utilize our oilfield services operations as a financial and operational hedge against oilfield service inflation. In October 2011, we formally segregated our oilfield services affiliates under Chesapeake Oilfield Services, L.L.C. and its wholly owned affiliate Chesapeake Oilfield Operating, L.L.C.

To date, we have invested in drilling rigs, compression equipment, rental tools, water management equipment, trucking, midstream services and, most recently, hydraulic fracturing equipment. Our industry-leading drilling and completion activities require a high level of planning and project coordination that we believe is best accomplished through vertical integration and ownership of a significant portion of the oilfield services we utilize. This vertical integration approach also creates cost savings, reduces turnover among operating teams, creates an alignment of interests, creates operational synergies, provides greater access to equipment, and increases safety and better coordinated logistics. In addition, our control of a large portion of the oilfield services equipment we utilize provides unique advantages in accelerating the timing of our leasehold development and therefore accelerating the value we are able to realize from our large inventory of undeveloped properties.​​​