Pennsylvania Update
We want to take this opportunity to update you, the elected officials and stakeholders of northeast Pennsylvania, about our operations, our activities in the community and how we are continuing to be a responsible community partner.
March 2024
Operational and Financial Update
On Feb. 21, Chesapeake reported its 2023 fourth quarter and year-end financial and operating results. To learn more, see our news release, presentation and earnings highlights.
Marcellus Operations
We are adjusting our operating activity in the Marcellus in 2024 due to prices and consumer demand.
- We currently are operating four drilling rigs and plan to drop one rig around mid-year.
- We are dropping from two frac crews to one by the end of the first quarter.
Company News
Accelerating America’s Energy Reach: Chesapeake to Merge with Southwestern
We started 2024 with exciting news, announcing our agreement to merge with Houston-based Southwestern Energy. Together, Chesapeake and Southwestern will combine to create an unparalleled natural gas portfolio in terms of scale and quality. As our two companies merge, we’re set to be the largest independent natural gas producer in the United States.
In addition to combining our operational assets, we’ll merge talent from the two companies to maximize our strengths and better position us to deliver gas to markets where it’s needed most.
As part of the merger, the combined company will assume a new name upon closing. We believe that a new company name sends a clear message that we’re taking the best of each company and using our collective strengths to create a business that is stronger than it ever could have been independently.
This is a pivotal moment in Chesapeake’s longstanding history. Although the company name is changing, one thing that will not change is our unwavering commitment to being a responsible operator and to supporting our communities and the people who live in them.
Progress on our LNG Journey
In February, we announced that we have entered into long-term LNG liquefaction offtake Sales and Purchase Agreements with Gunvor Group Ltd. and Delfin LNG.
This marks an important milestone for Chesapeake as it is the first definitive LNG deal for us and demonstrates our commitment to lead the way in providing cleaner energy to the world.
Under the agreement, Chesapeake will purchase LNG volumes from Delfin, a leading LNG export infrastructure development company. Gunvor will then purchase these volumes at an international sales price, indexed to the Japan Korea Marker (JKM), for a period of 20 years.
Employee Spotlight
Get to Know Marcellus Landman Shannon Brooks
Marcellus Landman Shannon Brooks has been with Chesapeake for more than 14 years. As a long-time employee, she’s been able to build strong relationships with not only her co-workers but also landowners in the community.
In her role, Shannon negotiates surface agreements related to well pads, well pad expansions, lease roads and site restorations. She also responds to landowner inquiries about operations and developments in their area and works with other departments in the company to help resolve landowner concerns.
Her favorite part of her job is helping people, both landowners and her co-workers.
“I enjoy developing relationships with our landowners and providing them with the information and knowledge they need,” she said. “It’s rewarding because I know they appreciate the time and effort. I couldn’t build the positive relationships without the help of my co-workers. Our field office team works well together. Many of us have been with Chesapeake for 10-plus years, and we’ve grown together professionally throughout that time.”
Shannon and her husband AJ have two children, Gavin, 11, and Elise, 8.
She spends most of her spare time with her family, camping and traveling to watch her son play baseball in the summer and skiing and watching her daughter perform gymnastics during the winter.
She and her family like to stay active and recently started competing in Spartan DEKA events, a fitness competition that consists of 10 exercises or zones along with running.
“It’s challenging, but fun to do as a family. It’s given us a goal to work toward, and we’ve gotten better with each event,” she said.
In The Community
Helping Animals, Fighting Hunger and Much More
We’re proud to share that in 2023 Chesapeake’s Marcellus team held 53 volunteer events, totaling 1,042 employee volunteer hours, as well as two blood drives and three employee fundraising drives.
Over the past quarter, employees continued to be active in the community, participating in 15 volunteer events, including:
- Game Commission Driving Tour – Employees provided handouts and helped serve hot dogs on this 28-mile tour through State Gamelands, which highlighted habitat enhancements, infrastructure improvements and hunting opportunities in Bradford County. The tour showcased what Game Commission wildlife habitat crews, as well as dedicated volunteers from several conservation organizations, have accomplished on public land.
- CHOP (Child Hunger Outreach Partners) – We continued our regular monthly CHOP H.E.L.P. event to pack bags of food for the children in the local community.
- Bradford County Humane Society – Several employees volunteered with the Bradford County Humane Society to walk dogs and socialize with the cats.
- Luke’s Hidden Haven – In our second time to volunteer here, we walked dogs, socialized with the dogs that can’t go for walks and assisted with other needs the organization has.
- Seven Loaves Soup Kitchen – Employees volunteered at this Soup Kitchen in Tunkhannock in Wyoming County, which serves daily meals to those in need.
Additionally, over the holidays, Chesapeake donated to 19 local nonprofit agencies, including The Bridge food pantry, The Salvation Army’s Christmas Is for Kids program and the Towanda Police Department’s Operation Blue Santa. Employees sponsored five children through the Bradford County Children and Youth Services to provide winter clothes and toys.
ESG Update
Prioritizing Safety: Chesapeake Achieves Companywide Records
The Marcellus operations team recently achieved a major safety milestone of five years without a recordable incident. They will be recognized at a celebration event in April.
The Marcellus accomplishment is just one of many safety achievements across the company in 2023. We ended 2023 with ZERO Serious Incident and Fatality (SIF) events and improved our year-over-year Combined Total Recordable Incident Rate (TRIR) by 42%.
These achievements were made possible through the collaborative efforts of all our teams and a comprehensive training program focused on reducing SIFs implemented in 2023.
In addition to helping identify exposures and reduce SIFs, the workshops reinforce the message that safety is everyone’s responsibility and puts ownership on leaders to drive the company’s safety culture and behaviors.
For more information on our sustainability efforts, visit chk.com/sustainability, and stay up to date on Chesapeake employees’ related activities on www.chk.com/category/esg-news/.
Questions/Contact Information
Our team in Sayre is speaking with landowners every day as we prepare for future development. If you have questions, please reach out to any of the following on our team
Seth Caputo
Senior Staff Landman
Seth.Caputo@chk.com
Shannon Brooks
Landman
Shannon.Brooks@chk.com
Matt Sheppard
Government & Regulatory Affairs
Matt.Sheppard@chk.com