Chesapeake Energy Corporation Announces Plan to Sell Its Midstream Assets in Three Transactions for Total Expected Cash Proceeds of More Than $4.0 Billion

Chesapeake Energy Corporation (NYSE:CHK) today announced plans to sell
its midstream assets in three separate transactions for total expected
cash proceeds of more than $4.0 billion. The midstream divestitures will
also enable Chesapeake to reduce previously budgeted capital
expenditures by approximately $3.0 billion over the next three years.

Chesapeake has agreed to sell its limited partner units and its general
partner interests in Chesapeake Midstream Partners, L.P. (NYSE:CHKM) to
Global Infrastructure Partners (GIP) for cash proceeds of $2.0 billion.
Chesapeake expects to receive the first half of the proceeds on June 15,
2012 with a final closing and payment of the second half of the proceeds
scheduled to occur by June 29, 2012. Chesapeake′s net book value for
these assets as of March 31, 2012 was approximately $1.0 billion, and
the company anticipates reporting a pretax gain on the sale of
approximately $1.0 billion.

Chesapeake has also entered into a letter agreement with CHKM relating
to the potential sale of certain Mid-Continent gathering and processing
assets to CHKM and a separate letter agreement with GIP for the sale of
the company′s interests in its wholly owned subsidiary, Chesapeake
Midstream Development, L.P. (CMD) to GIP. Chesapeake expects total cash
proceeds of more than $2.0 billion from these two transactions. The
company′s net book value for these assets as of March 31, 2012 was
approximately $1.4 billion. The GIP letter agreement includes a 45-day
exclusive negotiation period and a 45-day extension period if a purchase
price has been agreed to and progress is being made toward closing.

Aubrey K. McClendon, Chesapeake′s Chief Executive Officer, commented,
'We have been working for the past few months to monetize our
substantial and valuable midstream assets and are pleased to announce
the sale of our investments in CHKM and a plan to sell our remaining
midstream assets at attractive prices. These transactions will preserve
the strategic relationships we have with CHKM and CMD as our primary
midstream service providers and further strengthen the close
relationship we have enjoyed with GIP since 2009. The proceeds of these
transactions are an important part of our 2012 asset sales program that
is on track to generate cash proceeds of $11.5-14.0 billion. Combined
with the $2.6 billion of proceeds generated to date in 2012 from asset
sales, this series of midstream transactions will bring our announced
asset sales for the year up to approximately $6.6 billion. With our
Permian asset sale, Mississippi Lime JV and other miscellaneous asset
sales still to come in the second half of the year, we feel very good
about our ability to meet our targeted range for 2012 asset sales.
Importantly, the sale of CMD will also reduce previously planned capital
expenditures by approximately $3.0 billion over the next three years. We
greatly appreciate the hard work and dedication of our midstream
employees as they have contributed to building one of the largest and
highest quality midstream businesses in the industry. We look forward to
the continued success of our midstream businesses under the leadership
of its existing midstream management team and GIP′s new ownership.?

J. Mike Stice, CHKM′s Chief Executive Officer and CMD′s President,
commented, 'This is a new beginning for both CHKM and CMD and an
opportunity to explore additional growth opportunities from a solid
foundation provided by CHK as our anchor shipper. We have built a very
talented and profitable organization, and I am very excited about the
future of our independent midstream businesses. We believe our unique
combination of contractual, organic and dropdown growth is unmatched in
the midstream industry.?

Adebayo Ogunlesi, GIP′s Managing Partner, commented, 'We have enjoyed a
mutually beneficial partnership with Chesapeake over the past three
years, and we look forward to continuing to provide Chesapeake with high
quality midstream services while expanding these offerings to other
producers requiring similar services. The management team and employees
at CHKM have proven to be very capable and highly customer focused, and
we are confident this business will continue to be successful and grow
profitably in the years ahead.?

Chesapeake Energy Corporation (NYSE:CHK) 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 Marcellus,
Haynesville, Bossier, and Barnett natural gas shale plays and in the
Eagle Ford, Utica, Mississippi Lime, Granite Wash, Cleveland, Tonkawa,
Niobrara, Bone Spring, Avalon, Wolfcamp and Wolfberry unconventional
liquids plays.The company has also vertically integrated
its operations and owns substantial marketing, midstream and oilfield
services businesses directly and indirectly through its subsidiaries
Chesapeake Energy Marketing, Inc., Chesapeake Midstream Development,
L.P. and Chesapeake Oilfield Services, L.L.C. and its affiliate
Chesapeake Midstream Partners, L.P. (NYSE:CHKM).Further
information is available at www.chk.com
where Chesapeake routinely posts announcements, updates, events,
investor information, presentations and news releases.

This news release includes 'forward-looking statements' that give
Chesapeake's current expectations or forecasts of future events. These
statements include the completion of the sale of limited partner units
and general partner interests in Chesapeake Midstream Partners, L.P.
(NYSE:CHKM) and the potential sale of Mid-Continent gathering and
processing assets and Chesapeake′s wholly owned subsidiary, Chesapeake
Midstream Development, L.P.Although we believe the
expectations and forecasts reflected in our forward-looking statements
are reasonable, we can give no assurance they will prove to have been
correct. They can be affected by inaccurate assumptions or by known or
unknown risks and uncertainties, and actual results may differ from the
expectation expressed. The terms of the transactions covered by the
letter agreements are subject to negotiation and may not be completed in
the time frame anticipated or at all.We caution you not
to place undue reliance on our forward-looking statements, which speak
only as of the date of this news release, and we undertake no obligation
to update this information.

Chesapeake Energy Corporation

Jeffrey L. Mobley, CFA, 405-767-4763

jeff.mobley@chk.com

or

John
J. Kilgallon, 405-935-4441

john.kilgallon@chk.com

or

Media
Contacts:

Michael Kehs, 405-935-2560

michael.kehs@chk.com

or

Jim
Gipson, 405-935-1310

jim.gipson@chk.com