Chesapeake Energy Corporation Announces Pricing of Initial Public Offering by Chesapeake Granite Wash Trust

11.11.2011  |  Business Wire

Chesapeake Energy Corporation ('Chesapeake?) (NYSE:CHK) today announced
that Chesapeake Granite Wash Trust (the 'Trust?) has priced an initial
public offering of 20,000,000 common units at a price of $19.00 per
common unit. The units sold represent an approximate 43% beneficial
interest in the Trust. The Trust has also granted the underwriters the
option to purchase up to an additional 3,000,000 common units.

The common units being offered to the public have been approved for
listing on the New York Stock Exchange and will trade under the symbol
'CHKR.? Following completion of the offering, which is anticipated to
close on November 16, 2011, Chesapeake will own an approximate 57%
beneficial interest in the Trust including 15,062,500 common units and
11,687,500 subordinated units, assuming no exercise of the underwriters′
option to purchase additional units. The Trust will have a total of
46,750,000 units outstanding.

The Trust will own royalty interests conveyed to it by Chesapeake that
will entitle the Trust to a percentage of the proceeds received by
Chesapeake from the production of hydrocarbons from 69 currently
producing wells and 118 development wells to be drilled in the future by
Chesapeake on approximately 45,400 gross acres (28,700 net acres) in the
Colony Granite Wash play in Washita County in the Anadarko Basin of
western Oklahoma.

Morgan Stanley & Co. LLC and Raymond James & Associates, Inc. served as
joint book-running managers and joint structuring advisors for the
offering. Deutsche Bank Securities Inc., Goldman, Sachs & Co. and Wells
Fargo Securities, LLC also served as joint book-running managers. This
offering of common units is being made only by means of a prospectus. A
written prospectus meeting the requirements of the Securities Act of
1933 may be obtained from:

A Registration Statement on Forms S-1 and S-3 relating to these
securities has been declared effective by the U.S. Securities and
Exchange Commission. This press release shall not constitute an offer to
buy nor shall there be any sale of these securities in any jurisdiction
where the offer or sale is not permitted.

ABOUT CHESAPEAKE GRANITE WASH TRUST:

Chesapeake Granite Wash Trust is a Delaware statutory trust formed
by Chesapeake Energy Corporation to own certain royalty interests in oil
and natural gas wells in Washita County, Oklahoma producing from the
Colony Granite Wash Play within the broader Granite Wash formation of
the Anadarko Basin. The common units do not represent interests in and
are not obligations of Chesapeake Energy Corporation.

ABOUT CHESAPEAKE ENERGY CORPORATION:

Chesapeake Energy Corporation is the second-largest producer of
natural gas, a Top 15 producer of oil and natural gas liquids and the
most active driller of new wells in the U.S.Headquartered
in Oklahoma City, the company's operations are focused on discovering
and developing unconventional natural gas and oil fields onshore in the
U.S.Chesapeake owns leading positions in the Barnett,
Haynesville, Bossier, Marcellus and Pearsall natural gas shale plays and
in the Granite Wash, Cleveland, Tonkawa, Mississippi Lime, Bone Spring,
Avalon, Wolfcamp, Wolfberry, Eagle Ford, Niobrara, Three Forks/Bakken
and Utica unconventional liquids plays.The company has
also vertically integrated its operations and owns substantial
midstream, compression, drilling, trucking, pressure pumping and other
oilfield service assets directly and indirectly through its subsidiaries
Chesapeake Midstream Development, L.P. and Chesapeake Oilfield Services,
L.L.C. and its affiliate Chesapeake Midstream Partners, L.P. (NYSE:CHKM).Chesapeake′s stock is listed on the New York Stock Exchange under
the symbol CHK.Further information is available at www.chk.com
where Chesapeake routinely posts announcements, updates, events,
investor information, presentations and press releases.

This press release includes forward-looking statements that relate
to, among other things, the offering and expected closing of such
offering of common units.Forward-looking statements give our
current expectations or forecasts of future events.We caution
you not to place undue reliance on our forward-looking statements, which
speak only as of the date of this release, and we undertake no
obligation to update this information.Although we believe the
expectations and forecasts reflected in these and other forward-looking
statements are reasonable, we can give no assurance they will prove to
be correct.They can be affected by inaccurate assumptions or by
known or unknown risks and uncertainties.