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Oil, Natural Gas and NGL Reserves The tables below set forth information as of December 31, 2015 with respect to our estimated proved reserves, the associated estimated future net revenue and present value (discounted at an annual rate of 10%) of estimated future net revenue before and after future income taxes (standardized measure). Neither the pre-tax present value of estimated future net revenue nor the after-tax standardized measure is intended to represent the current market value of the estimated oil, natural gas and NGL reserves we own. All of our estimated reserves are located within the United States.

Proved developed ............................................... Proved undeveloped ........................................... Total proved(a) .......................................................

Oil (mmbbl) 216 98 314

December 31, 2015 Natural Gas NGL (bcf) (mmbbl) 5,329 158 712 25 6,041 183 Proved Developed

Proved Undeveloped ($ in millions) $ 2,334 $ 779

Estimated future net revenue(b) ......................................................... $ 7,153 (b) ............................ Present value of estimated future net revenue $ 3,948 Standardized measure(b)(c) ............................................................................................................................

Operating Division Southern .......................... Northern ........................... Total.............................

Oil (mmbbl) 272 42 314

Natural Gas (bcf) 3,252 2,789 6,041

NGL (mmbbl) 110 73 183

Oil Equivalent (mmboe) 924 580 1,504

Percent of Proved Reserves 61% 39% 100%

Total (mmboe) 1,262 242 1,504 Total Proved $ $ $

9,487 4,727 4,693

Present Value ($ millions) $ 3,347 1,380 $ 4,727

(b)

___________________________________________ (a)

Includes 1 mmbbl of oil, 32 bcf of natural gas and 3 mmbbl of NGL reserves owned by the Chesapeake Granite Wash Trust, 1 mmbbl of oil, 16 bcf of natural gas and 2 mmbbl of NGL of which are attributable to the noncontrolling interest holders.

(b)

Estimated future net revenue represents the estimated future gross revenue to be generated from the production of proved reserves, net of estimated production and future development costs, using prices and costs under existing economic conditions as of December 31, 2015. For the purpose of determining prices used in our reserve reports, we used the unweighted arithmetic average of the prices on the first day of each month within the 12month period ended December 31, 2015. The prices used in our reserve reports were $50.28 per bbl of oil and $2.58 per mcf of natural gas, before basis differential adjustments. These prices should not be interpreted as a prediction of future prices, nor do they reflect the value of our commodity derivative instruments in place as of December 31, 2015. The amounts shown do not give effect to nonproperty-related expenses, such as corporate general and administrative expenses and debt service, or to depreciation, depletion and amortization. The present value of estimated future net revenue differs from the standardized measure only because the former does not include the effects of estimated future income tax expenses ($34 million as of December 31, 2015). Management uses future net revenue, which is calculated without deducting estimated future income tax expenses, and the present value thereof as a measure of the value of the Company's current proved reserves and to compare relative values among peer companies. We also understand that securities analysts and rating agencies use this measure in similar ways. While future net revenue and the present value thereof are based on prices, costs and discount factors which are consistent from company to company, the standardized measure of discounted future net cash flows is dependent on the unique tax situation of each individual company.

(c)

Additional information on the standardized measure is presented in Supplemental Disclosures About Oil, Natural Gas and NGL Producing Activities included in Item 8 of Part II of this report.

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Profile for Chesapeake Energy

2015 Annual Report  

2015 Annual Report