1. Chesapeake Energy SIG Commodities Thomas Olsen Nicolas Martinez Dan Gennarelli

2. Chesapeake Energy Snapshot Primarily a natural gas (NG) producer Largest Independent NG producer in America Focusing on developing less risky on- shore wells rather than Gulf of Mexico

3. Performance Metrics - CHK Current price – $45.24 P/E (Trailing) – N/A P/E (Forecast) 12.2 PEG - Negative Market Cap – 28B Reserves of 12.17 trillion cubic feet per natural gas equivalent Debt to Equity Ratio - 1

4. Earning Reports Last 2 Years Profit  2007 - $4,881,000,000  2006 - $5,069,000,000 Last 2 Quarters Profit  6/08 - ($794,000,000)  3/08 - ($1,300,000,000) Outperform

5. CHK Dialy 3 month

6. CHK Monthly 5 year

7. NG V8 Weekly

8. CHK vs. NG V8

9. Recent Trends Natural Gas prices have fallen precipitously this summer Still trade at about 40% discount to Oil BTU-wise Production and pipeline capacity coming online in the rockies  Good for consumers  Bad for producers

10. Pickens Plan Recent big push for compressed natural gas to replace gasoline for transportation 22% of municipal buses use CNG Truck companies are beginning to switch Will cars follow suit? Short-term bearish Long-term bullish?? Long dated call options once vol goes down?