Chesapeake Energy(US:CHK)2022-06-22 13:10Financial Performance & Capital Returns - Chesapeake Energy projects approximately $14 billion of Free Cash Flow (FCF) over the next five years, representing approximately 115% of its market capitalization at the adjusted strip [5] - The company plans to return approximately $9 billion to shareholders through dividends and buybacks over the next five years at the adjusted strip [5] - Chesapeake Energy has authorized a $2 billion equity repurchase program by 2023E [5, 7, 30] - The company is committed to maintaining a net debt-to-EBITDAX ratio of less than 10x, down to $250/$50 [5, 7, 26, 28] - Chesapeake Energy's base dividend has a breakeven point of approximately $215/mcf [10] Asset Portfolio & Production - Chesapeake Energy has over 2,500 locations with greater than 100% IRR at $400/$75 flat pricing [5] - The company's 2022E total daily production rate is projected to be 670-690 mboe/d [14, 47] - The company has approximately 650,000 net acres in Marcellus, 350,000 net acres in Haynesville, and 610,000 net acres in Eagle Ford [14] - The company projects $7 billion of 5-year Free Cash Flow (FCF) net of allocated hedges, corporate items, and taxes from Marcellus [20] - The company projects $3 billion of 5-year Free Cash Flow (FCF) net of allocated hedges, corporate items, and taxes from Eagle Ford [23] ESG Initiatives - Chesapeake Energy is retrofitting over 19,000 pneumatic devices, aiming to reduce reported GHG emissions by approximately 40% and methane emissions by approximately 80% by YE'22 [34] - The company is targeting net-zero direct GHG emissions by 2035 [34] - Chesapeake Energy aims for zero routine flaring on wells completed in 2021 and beyond, enterprise-wide by 2025 [34]