Chesapeake Energy Corporation Announces Offering of $1.0 Billion of Contingent Convertible Senior Notes

Chesapeake Energy Corporation (NYSE:CHK) today announced that it
is commencing a public offering of $1.0 billion of a new issue of
contingent convertible senior notes due 2037. The notes will be
convertible, under certain circumstances, using a net share settlement
process, into a combination of cash and Chesapeake common stock. In
general, upon conversion of a note, the holder of such note will
receive cash equal to the principal amount of the note and common
stock for the note's conversion value in excess of the principal
amount of the note. Chesapeake intends to use the net proceeds from
the offering to repay outstanding indebtedness under its revolving
credit facility. The contingent convertible senior notes are being
offered pursuant to an automatically effective registration statement
filed today with the U.S. Securities and Exchange Commission.
Chesapeake intends to list the notes on the New York Stock Exchange
after issuance.

Credit Suisse Securities (USA) LLC and UBS Securities LLC will act
as Joint Global Coordinators and Book-Running Managers for
the offering. Copies of the preliminary prospectus and records
relating to the offering may be obtained from the offices of Credit
Suisse Securities (USA) LLC, Prospectus Department, One Madison
Avenue, New York, NY 10010, 1-800-221-1037 or UBS Securities LLC,
Prospectus Department, 299 Park Avenue, 29th Floor, New York, NY
10071, 212-821-3000. An electronic copy of the prospectus will be
available on the website of the Securities and Exchange Commission at
www.sec.gov.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
securities in any state or country in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under
the securities laws of any state or country.

Chesapeake Energy Corporation is the third-largest independent and
sixth-largest overall producer of natural gas in the U.S.
Headquartered in Oklahoma City, the company's operations are focused
on exploratory and developmental drilling and corporate and property
acquisitions in the Mid-Continent, Fort Worth Barnett Shale,
Fayetteville Shale, Permian Basin, Delaware Basin, South Texas, Texas
Gulf Coast, Ark-La-Tex and Appalachian Basin regions of the United
States.