Chesapeake Energy Corporation Announces Arrangement of $2.0 Billion Unsecured Term Loan Facility

Chesapeake Energy Corporation (NYSE:CHK) announced today that it has
engaged Bank of America, N.A., Goldman Sachs Bank USA and Jefferies
Finance LLC to assist with the arrangement of an unsecured five-year
term loan facility in an aggregate principal amount of $2.0 billion.
Chesapeake intends to use the net proceeds of the new term loan facility
to repay the remaining outstanding borrowings under the company′s
existing term loan facility arranged in May 2012 and to repay
outstanding borrowings under the company′s corporate revolving credit
facility. This will enhance the company′s liquidity and financial
flexibility as it continues to execute its previously announced asset
sales strategy and will allow the future repayment of higher cost debt.

Archie W. Dunham, Chesapeake′s Non-Executive Chairman of the Board,
stated: 'The board and management believe current corporate loan market
conditions offer attractive refinancing opportunities on favorable
terms. By using the proceeds of this loan to repay more costly debt and
provide excess liquidity, we will enhance our financial flexibility and
ensure our ability to complete our planned asset sales efficiently. We
continue to believe that Chesapeake′s portfolio of assets and dedicated
employees are second to none, and we have confidence in the company′s
ability to achieve its stated financial and operational goals. The board
and management remain committed to reducing debt levels to $9.5 billion
or below as we execute on a more focused drilling program on our
existing assets.?

Aubrey K. McClendon, Chesapeake′s Chief Executive Officer, commented:
'We are pleased with the progress we′ve made toward achieving our
long-term debt goals since the beginning of 2011 and look forward to the
completion of those goals, driven by the success of our asset sale
program, which remains on track. We are proud of the production growth
we have achieved, particularly the growth of our oil and natural gas
liquids production over this period. We also look forward to the
completion of our 2012-2013 asset sales and more focused drilling
activity that will lead over time to a balance between drilling capital
expenditures and operating cash flow as we transition into our asset
harvest strategy from our previous strategy of new play identification
and capture.?

Amounts borrowed under the new term loan facility will be unsecured and
will be unconditionally guaranteed on a joint and several basis by
Chesapeake′s direct and indirect wholly owned domestic subsidiaries that
are subsidiary guarantors under the company′s existing senior notes
indentures. The new term loan facility will permit Chesapeake to repay
other unsecured indebtedness, including amounts outstanding under the
existing term loan facility, Chesapeake′s 6.775% Senior Notes due 2019,
Chesapeake′s 7.625% Senior Notes due 2013 and up to $1.2 billion of
other senior unsecured indebtedness. Additionally, the new term loan
facility will permit Chesapeake to refinance its existing senior
unsecured indebtedness with longer-dated senior unsecured notes.

Chesapeake's ability to establish the new facility and borrow thereunder
will be subject to the receipt of commitments from lenders to provide
the facility, the negotiation and execution of definitive loan documents
and other customary conditions.

This news release includes 'forward-looking statements' that give
Chesapeake's current expectations. Although we believe the expectations
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 final terms of the new loan facility, if it is
established, and the use of proceeds may differ from the expectations
announced. We may be unable to complete our planned asset sales as
scheduled or at all, and they may not generate the proceeds we are
anticipating. Our ability to consummate asset sales is dependent upon
market conditions and other factors beyond our control, and our plans to
reduce indebtedness are in large part dependent upon asset sales we
expect to make. We may not be successful in achieving a balance between
drilling capital expenditures and operating cash flow in the anticipated
time frame.. 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 (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 Eagle Ford,
Utica, Granite Wash, Cleveland, Tonkawa, Mississippi Lime and Niobrara
unconventional liquids plays and in the Marcellus, Haynesville/Bossier
and Barnett unconventional natural gas shale plays. The company also
owns substantial marketing and oilfield services businesses through its
subsidiaries Chesapeake Energy Marketing, Inc. and COS Holdings, L.L.C.
Further information is available at www.chk.com
where Chesapeake routinely posts announcements, updates, events,
investor information, presentations and news releases.

Chesapeake Contacts:

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