Chesapeake Energy Corporation Announces Executive Management Team for Chesapeake Oilfield Services, L.L.C.

19.09.2011  |  Business Wire

Chesapeake Energy Corporation (NYSE:CHK) today announced the executive
management team for its newly formed and wholly owned subsidiary
Chesapeake Oilfield Services, L.L.C. (COS).

Chesapeake initiated its service company vertical integration strategy
in 2001 with a $25 million investment to build and refurbish five
drilling rigs. In the past 10 years, Chesapeake has built what it
believes will become a top five U.S.-focused oilfield service company.
The goal of Chesapeake′s service company vertical integration strategy
is to provide premium services at attractive prices to Chesapeake's E&P
operations while improving operating efficiencies, lowering costs and
serving as an inflation hedge. Including Chesapeake's 30% interest in
Frac Tech International, LLC, the company has invested approximately
$1.8 billion in its service companies and believes in 2012 its service
companies could be worth between $7-10 billion.

Subsidiaries of COS include the following: Nomac Drilling, L.L.C., the
nation's fourth-largest drilling contractor with 114 operated rigs;
Performance Technologies, L.L.C. (PTL), a start-up pressure pumping
company that will have 60,000 horsepower (hp) in the field in October
2011, 140,000 hp by February 2012 and 300,000 hp by year-end 2012;
Thunder Oilfield Services, L.L.C., a holding company for trucking,
equipment rental and rock excavation businesses; Compass Manufacturing,
L.L.C., which supplies natural gas compression packages and related
production equipment to Chesapeake′s wholly owned subsidiary MidCon
Compression L.L.C., which is the second-largest natural gas compressor
provider in the U.S.; and CHK Directional Drilling, L.L.C., a leading
provider of integrated directional drilling and measurement while
drilling (MWD) services.

COS Management Profiles

Jerry L. Winchester, 52, joined COS as the company′s first Chief
Executive Officer. Mr. Winchester served as President and CEO of Boots &
Coots International Well Control, Inc. ?for 13 years until the company
was acquired by Halliburton Corporation in September 2010. Boots & Coots
was formed in 1978 and was a public company for 15 years before its
acquisition. Prior to Boots & Coots, Mr. Winchester served in a variety
of management and operational roles over 14 years with Halliburton. He
received a Bachelor of Science degree from Oklahoma State University.

James G. 'Jay? Minmier, 47, joined COS as President of Nomac Drilling
and CHK Directional Drilling. Previously, Mr. Minmier served as Vice
President and General Manager for Precision Drilling Corporation. He has
more than 20 years of experience in the drilling industry, including
previous assignments with Helmerich & Payne IDC and Grey Wolf Drilling
LLC. Prior to working in the oilfield, Mr. Minmier was a captain in the
U.S. Air Force. He received a Bachelor of Science degree from the
University of Texas at Arlington and a Master of Business Administration
degree from the University of West Florida.

William R. 'Bill? Stanger, 57, joined Chesapeake in January 2010 as
President of Great Plains Oilfield Rentals, a wholly owned subsidiary of
Chesapeake, and has assumed the role of President of PTL. Mr. Stanger
served in a variety of management and operational positions for
Schlumberger Limited for 23 years including Vice President of Operations
Well Services ? North America and management of wireline, drilling and
measurements, artificial lift and data and consulting services. He
received a Bachelor of Science degree from the University of Tulsa.

Zachary M. 'Zac? Graves, 36, joined COS through Chesapeake′s recent
acquisition of Bronco Drilling Company, Inc. in June 2011, where he most
recently served as Executive Vice President of Operations and previously
served as Chief Financial Officer. Mr. Graves serves as President of
Thunder Oilfield Services. He received a Bachelor of Business
Administration degree from the University of Oklahoma.

David L. 'Dave? Fisher, 58, was appointed Chief Administrative Officer
of COS in May 2011. Mr. Fisher previously served as Vice President of
Drilling Services for Chesapeake, coordinating business activities for
numerous Chesapeake affiliates. Prior to joining Chesapeake in 2006, Mr.
Fisher held management and executive management positions with Reading
and Bates Offshore Drilling, NICOR Drilling, FWA Drilling, ADCOR-Nicklos
Drilling Company and Merlin Production Company. Mr. Fisher received a
Bachelor of Arts and Sciences degree from the University of Oklahoma and
a Master of Business Administration degree from the University of Tulsa.

Chesapeake Management Comments

Aubrey K. McClendon, Chesapeake′s Chief Executive Officer, commented,
'We have built a premier U.S. onshore oilfield service business in COS
and are extremely pleased to add additional first-class leadership to
further enhance our success and manage this distinctive combination of
very profitable assets. Chesapeake benefits greatly from its vertically
integrated business model and believes that owning and operating quality
service assets to drill and complete its wells uniquely insulates
Chesapeake from inflationary pressures. The buildout of these oilfield
service businesses further demonstrates the energy sector′s contribution
to economic recovery in the U.S. by adding high-paying, quality jobs
across all the COS business units in multiple states. The assembling of
this very strong COS management team is an important step to ultimately
monetizing a portion of these assets to unlock the latent value in COS
for Chesapeake′s shareholders.?

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, Mississippian, 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
oilfield service assets.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.