Haynesville Update
We want to take this opportunity to update you, the elected officials and stakeholders of the Haynesville and Bossier shale areas, about our operations, 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.
Haynesville Operations
We are adjusting our operating activity in the Haynesville in 2024 due to market conditions and consumer demand.
- We are dropping from five drilling rigs to four by the end of the first quarter.
- We began 2024 with two frac crews operating and dropped down to one this month.
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 HSER Supervisor Colby Finton
Colby Finton is a Health, Safety, Environmental and Regulatory (HSER) supervisor in Chesapeake’s Haynesville operations.
Colby began his career at Chesapeake in 2021, with the acquisition of Vine. He didn’t originally see himself in the oil and gas industry after college but decided to give it a shot at the advice of his grandfather, who worked at Shell. Colby worked in various roles before eventually landing with the HSER team when he came to Chesapeake.
A typical day for Colby starts with his favorite coffee, then he prepares statements for the morning operations call that describes notable HSER events from the previous day or weekend. Beyond that, you might find him training staff, onboarding a new vendor or going out and talking with folks in the field on their various projects.
“I love what I do,” he said. “Not every day is easy, but it’s an amazing feeling when you go home and feel like you actively made a difference.”
Outside of work, Colby enjoys spending time with his friends and his family. He’s married to his high school sweetheart and has a 4-year-old that keeps him busy.
In addition to making time for his family, Colby, a Louisiana native, also makes time for his community.
“I’m honored to be on the company’s community outreach team where I take part in most of the events we sponsor. We give scholarships, offer labor for projects and hold blood drives, cleaning events and fundraisers for organizations. We also give donations to deserving, local causes,” he said
In The Community
Haynesville Team Honored with Community Award
We are proud of several members of our Haynesville team, who, along with CNC Oilfield Services, were awarded for their volunteer efforts when Holy Angels Residential Facility was impacted by a severe storm last summer. The team was honored at a luncheon in December.
The team continues to make a difference in their community, and below are some additional highlights our team took part in the fourth quarter of 2024.
- Keep DeSoto Beautiful – We presented a grant that will support area clean-up efforts in conjunction with Keep DeSoto Beautiful.
- DeSoto Soil & Water Conservation District – We also awarded a grant to members of the DeSoto Soil & Water Conservation District Board to support a conservation education initiative within schools.
- Holiday Donations – Our Drilling, Completions and Operations teams donated toys to Operation Santa Claus, along with a corporate donation from Chesapeake.
- I Am Change – Employees packed and handed out Thanksgiving meals in conjunction with I Am Change to more than 200 families in Shreveport.
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
We want you to know we are always available to answer your questions. Our teams in the Mansfield and Haughton field offices speak with landowners every day as we prepare for future development.
Neil Lewis
Landman
neil.lewis@chk.com
Sammy Briscoe
Maintenance & Construction
sammy.briscoe@chk.com
Colby Finton
Health Safety & Environmental
colby.finton@chk.com
Michelle Cavanaugh
Community Affairs
michelle.cavanaugh@chk.com
Monty Mayfield
Land Manager
monty.mayfield@chk.com
Matt Sheppard
Government & Regulatory Affairs
matt.sheppard@chk.com
Jonathan Wheelis
Operations Manager
jonathan.wheelis@chk.com
Royalty Owner Questions
Contact Owner Relations
8 a.m. – 5 p.m. CST, Monday through Friday
877-245-1427
contact@chk.com