Letter from CEO Doug Lawler

I write to you today from a stronger, more efficient and more competitive company. During the past year, we have acted deliberately to improve our financial performance, fundamentally changing how we manage our business. Our approach emphasizes debt reduction and prudent risk taking, positioning us for strength even when confronted with volatile commodity prices. However, financial improvements alone will not make our business sustainable. Recognizing this, we laid a foundation of programs that make us not only a healthier organization, but one poised for leadership. The cornerstone of this systemic change has been an unwavering commitment to our core values and responsible operations.

Across the company, we adopted industry best practices, from a new contractor management program and a comprehensive supply chain management system to an improved site selection program. We also identified two areas — safety and spill reduction — as the company’s immediate focus for 2014, and saw significant improvements in both categories. This performance is the foundation for our goals in 2015 as we aim to further improve our safety and spills records for the benefit of our employees and the areas where we operate.

Although we face a challenging commodity price environment, our commitment to operating responsibly remains at the forefront of our company culture. We will not sacrifice the safety of our employees or business partners, the livelihood of our communities or the reputation of our company for financial gain. Each employee and contractor must feel confident that he or she will return home safely each day, and every neighbor needs to know that his or her land will be cared for and respected.

Browse the 2014 Corporate Responsibility Report and you will see the accomplishments of a year that was both foundational and innovative. All credit goes to our talented team of employees — people who approach their work with a passion for doing what’s right for our stakeholders and what’s responsible for our shareholders. We have positioned Chesapeake on a firm foundation from which to grow our great company, and we look forward to another year of strong performance and focused improvement.

Robert D. Lawler
President, Chief Executive Officer and Director
May 2015