Chesapeake Energy Corporation Announces Three Oil and Gas Asset Monetization Transactions for Proceeds of $2.6 Billion

Chesapeake Energy Corporation (NYSE:CHK) today announced three oil and
gas asset monetization transactions for total proceeds of approximately
$2.6 billion in cash.

Chesapeake has completed the sale of preferred shares of a newly formed
unrestricted, non-guarantor consolidated subsidiary, CHK Cleveland
Tonkawa, L.L.C. (CHK C-T), and a 3.75% overriding royalty interest in
the first 1,000 new net wells to be drilled on CHK C-T leasehold and
certain wells contributed at closing for proceeds of $1.25 billion. The
purchasing investment group was led by GSO Capital Partners LP, an
affiliate of the Blackstone Group (NYSE:BX), and included TPG Capital,
Magnetar Capital and EIG Global Energy Partners. CHK C-T owns
approximately 245,000 net leasehold acres in the Cleveland and Tonkawa
unconventional liquids-rich tight sand plays in Roger Mills and Ellis
counties, Oklahoma. Chesapeake has retained all the common equity
interests in CHK C-T.

The holders of CHK C-T preferred shares are entitled to receive an
initial annual distribution of 6%, payable quarterly. Chesapeake has
retained an option exercisable prior to March 31, 2019 to repurchase the
preferred shares for cash in whole or in part at any time, at a
valuation equal to the greater of a 9% internal rate of return or a
return on investment of 1.35x.

Chesapeake has also completed the sale of a 10-year volumetric
production payment (VPP) to an affiliate of Morgan Stanley (NYSE:MS) for
proceeds of approximately $745 million, or approximately $4.68 per
thousand cubic feet of natural gas equivalent (mcfe), for certain
producing assets in its Anadarko Basin Granite Wash play. The
transaction included approximately 160 billion cubic feet of natural gas
equivalent (bcfe) of proved reserves and current net production of an
estimated 125 million cubic feet of natural gas equivalent (mmcfe) per
day. Chesapeake has retained drilling rights on the properties above and
below currently producing intervals and outside of existing producing
wellbores. Including this transaction, the company has completed 10 VPP
transactions since December 2007 and, in doing so, has sold
approximately 1.37 trillion cubic feet of natural gas equivalent (tcfe)
of proved reserves for combined proceeds of approximately $6.4 billion,
or approximately $4.65 per mcfe, which is approximately 300% more than
the company′s current drilling and completion cost per mcfe.

Finally, Chesapeake recently signed a purchase and sale agreement
covering approximately 58,400 net acres of leasehold in the Texoma
Woodford play in Bryan, Carter, Johnston and Marshall counties in
Oklahoma to XTO Energy Inc., a subsidiary of Exxon Mobil Corporation
(NYSE:XOM), for approximately $590 million in cash before certain
deduction and standard closing adjustments. The properties include
approximately 25 mmcfe per day of current net production. The
transaction is expected to close on April 30, 2012.

Management Comment

Aubrey K. McClendon, Chesapeake′s Chief Executive Officer, commented,
'We are pleased to announce the completion of two value-creating asset
monetization transactions in the 2012 first quarter and also announce
our agreement to sell our Texoma Woodford assets to XTO. The Texoma
Woodford play is non-strategic to Chesapeake and we are happy to unlock
the value in these assets for our shareholders. We plan to monetize
other non-strategic assets during 2012, including our assets in the East
Texas Woodbine play where we own approximately 50,000 net acres of
leasehold. We look forward to the completion of our Texoma Woodford
transaction and other planned 2012 asset monetization transactions in
the months ahead for proceeds of approximately $8-10 billion.?

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 Barnett,
Haynesville, Bossier, Marcellus and Pearsall natural gas shale plays and
in the Eagle Ford, Utica, Granite Wash, Cleveland, Tonkawa, Mississippi
Lime, Bone Spring, Avalon, Wolfcamp, Wolfberry and Niobrara
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,
including the closing of the announced sale of leasehold in the Texoma
Woodford play. 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 Texoma Woodford leasehold sale may not be completed as
described 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 undertake no obligation to update this information.

The CHK C-T preferred shares have not been, and will not be,
registered under the Securities Act of 1933 or any state securities laws
and may not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirements of the
Securities Act of 1933 and applicable state laws.

This news release shall not constitute an offer to sell or a
solicitation of an offer to purchase the CHK C-T preferred shares or any
other securities, and shall not constitute an offer, solicitation or
sale in any state or jurisdiction in which such an offer, solicitation
or sale would be unlawful.

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