Chesapeake Energy (CHK) 8-K Chesapeake Energy Corporation Reports Fourth Quarter and Full-year 2021 Financial and Operating Results and Updates 2022 Guidance

Exhibit 99.2

CHESAPEAKE ENERGY CORPORATION - SUPPLEMENTAL TABLES

Table of Contents:	Page
Consolidated Balance Sheets	2
Consolidated Statements of Operations	3
Consolidated Statements of Cash Flows	5
Oil, Natural Gas and NGL Production and Average Sales Prices	7
Gross Margin	9
Capital Expenditures Accrued	11
Oil and Natural Gas Hedging Positions	12
Non-GAAP Financial Measures	14
Reconciliation of Adjusted Net Income (Loss) Attributable to Chesapeake	15
Reconciliation of Adjusted EBITDAX	17
Adjusted Free Cash Flow	18
Net Debt	18

1

CONSOLIDATED BALANCE SHEETS (unaudited)

	Successor		Predecessor
($ in millions)	December 31, 2021		December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	905	$	279
Restricted cash	9		—
Accounts receivable, net	1,115		746
Short-term derivative assets	5		19
Other current assets	69		64
Total current assets	2,103		1,108
Property and equipment:
Oil and natural gas properties, successful efforts method
Proved oil and natural gas properties	7,682		25,734
Unproved properties	1,530		1,550
Other property and equipment	495		1,754
Total property and equipment	9,707		29,038
Less: accumulated depreciation, depletion and amortization	(908)		(23,806)
Property and equipment held for sale, net	3		10
Total property and equipment, net	8,802		5,242
Other long-term assets	104		234
Total assets	$	11,009	$	6,584
Liabilities and stockholders' equity (deficit)
Current liabilities:
Accounts payable	$	308	$	346
Current maturities of long-term debt, net	—		1,929
Accrued interest	38		3
Short-term derivative liabilities	899		93
Other current liabilities	1,202		723
Total current liabilities	2,447		3,094
Long-term debt, net	2,278		—
Long-term derivative liabilities	249		44
Asset retirement obligations, net of current portion	349		139
Other long-term liabilities	15		5
Liabilities subject to compromise	—		8,643
Total liabilities	5,338		11,925
Contingencies and commitments
Stockholders’ equity (deficit):
Predecessor preferred stock, $0.01 par value, 20,000,000 shares authorized: 0 and 5,563,458 shares outstanding	—		1,631
Predecessor common stock, $0.01 par value, 22,500,000 shares authorized: 0 and 9,780,547 shares issued	—		—
Predecessor additional paid-in capital	—		16,937
Predecessor accumulated other comprehensive income	—		45
Successor common stock, $0.01 par value, 450,000,000 shares authorized: 117,917,349 and 0 shares issued	1		—
Successor additional paid-in capital	4,845		—
Retained earnings (accumulated deficit)	825		(23,954)
Total stockholders’ equity (deficit)	5,671		(5,341)
Total liabilities and stockholders’ equity (deficit)	$	11,009	$	6,584

2

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	Successor		Predecessor
	Three Months Ended December 31, 2021		Three Months Ended December 31, 2020
($ in millions except per share data)
Revenues and other:
Oil, natural gas and NGL	$	1,786	$	739
Marketing	820		457
Oil and natural gas derivatives	477		23
Gains on sales of assets	3		29
Total revenues and other	3,086		1,248
Operating expenses:
Production	103		78
Gathering, processing and transportation	239		269
Severance and ad valorem taxes	52		33
Exploration	3		10
Marketing	817		451
General and administrative	28		38
Separation and other termination costs	—		1
Depreciation, depletion and amortization	340		166
Impairments	—		13
Other operating expense, net	83		13
Total operating expenses	1,665		1,072
Income from operations	1,421		176
Other income (expense):
Interest expense	(26)		(24)
Other income	—		5
Reorganization items, net	—		(579)
Total other expense	(26)		(598)
Income (loss) before income taxes	1,395		(422)
Income tax benefit	(39)		(6)
Net income (loss)	1,434		(416)
Net loss attributable to noncontrolling interests	—		—
Net income (loss) available to common stockholders	$	1,434	$	(416)
Earnings (loss) per common share:
Basic	$	12.90	$	(42.54)
Diluted	$	11.13	$	(42.54)
Weighted average common shares outstanding (in thousands):
Basic	111,160		9,780
Diluted	128,846		9,780

3

	Successor		Predecessor
	Period from February 10, 2021 through December 31, 2021		Period from January 1, 2021 through February 9, 2021		Year Ended December 31, 2020
($ in millions except per share data)
Revenues and other:
Oil, natural gas and NGL	$	4,401	$	398	$	2,745
Marketing	2,263		239		1,869
Oil and natural gas derivatives	(1,127)		(382)		596
Gains on sales of assets	12		5		30
Total revenues and other	5,549		260		5,240
Operating expenses:
Production	297		32		373
Gathering, processing and transportation	780		102		1,082
Severance and ad valorem taxes	158		18		149
Exploration	7		2		427
Marketing	2,257		237		1,889
General and administrative	97		21		267
Separation and other termination costs	11		22		44
Depreciation, depletion and amortization	919		72		1,097
Impairments	1		—		8,535
Other operating expense (income), net	84		(12)		80
Total operating expenses	4,611		494		13,943
Income (loss) from operations	938		(234)		(8,703)
Other income (expense):
Interest expense	(73)		(11)		(331)
Gains on purchases or exchanges of debt	—		—		65
Other income (expense)	31		2		(4)
Reorganization items, net	—		5,569		(796)
Total other income (expense)	(42)		5,560		(1,066)
Income (loss) before income taxes	896		5,326		(9,769)
Income tax benefit	(49)		(57)		(19)
Net income (loss)	945		5,383		(9,750)
Net loss attributable to noncontrolling interests	—		—		16
Net income (loss) attributable to Chesapeake	945		5,383		(9,734)
Preferred stock dividends	—		—		(22)
Net income (loss) available to common stockholders	$	945	$	5,383	$	(9,756)
Earnings (loss) per common share:
Basic	$	9.29	$	550.35	$	(998.26)
Diluted	$	8.12	$	534.51	$	(998.26)
Weighted average common shares outstanding (in thousands):
Basic	101,754		9,781		9,773
Diluted	116,341		10,071		9,773

4

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

	Successor		Predecessor
	Three Months Ended December 31, 2021		Three Months Ended December 31, 2020
($ in millions)
Cash flows from operating activities:
Net income (loss)	$	1,434	$	(416)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	340		166
Deferred income tax benefit	(49)		—
Derivative losses, net	(477)		(23)
Cash payments on derivative settlements, net	(705)		(6)
Share-based compensation	4		5
Gains on sales of assets	(3)		(29)
Impairments	—		13
Non-cash reorganization items, net	—		87
Exploration	1		8
Other	36		(18)
Changes in assets and liabilities	(18)		222
Net cash provided by operating activities	563		9
Cash flows from investing activities:
Capital expenditures	(265)		(169)
Business combination, net	(194)		—
Proceeds from divestitures of property and equipment	4		135
Net cash used in investing activities	(455)		(34)
Cash flows from financing activities:
Cash paid for common stock dividends	(52)		—
Other	—		(2)
Net cash used in financing activities	(52)		(2)
Net increase in cash, cash equivalents and restricted cash	56		(27)
Cash, cash equivalents and restricted cash, beginning of period	858		306
Cash, cash equivalents and restricted cash, end of period	$	914	$	279
Cash and cash equivalents	$	905	$	279
Restricted cash	9		—
Total cash, cash equivalents and restricted cash	$	914	$	279

5

	Successor		Predecessor
	Period from February 10, 2021 through December 31, 2021		Period from January 1, 2021 through February 9, 2021		Year Ended December 31, 2020
($ in millions)
Cash flows from operating activities:
Net income (loss)	$	945	$	5,383	$	(9,750)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation, depletion and amortization	919		72		1,097
Deferred income tax benefit	(49)		(57)		(10)
Derivative (gains) losses, net	1,127		382		(596)
Cash receipts (payments) on derivative settlements, net	(1,142)		(17)		884
Share-based compensation	9		3		21
Gains on sales of assets	(12)		(5)		(30)
Impairments	1		—		8,535
Non-cash reorganization items, net	—		(6,680)		(213)
Exploration	2		2		417
Gains on purchases or exchanges of debt	—		—		(65)
Other	46		45		(41)
Changes in assets and liabilities	(37)		851		915
Net cash provided by (used in) operating activities	1,809		(21)		1,164
Cash flows from investing activities:
Capital expenditures	(669)		(66)		(1,142)
Business combination, net	(194)		—		—
Proceeds from divestitures of property and equipment	13		—		150
Net cash used in investing activities	(850)		(66)		(992)
Cash flows from financing activities:
Proceeds from Exit Credit Facility - Tranche A Loans	30		—		—
Payments on Exit Credit Facility - Tranche A Loans	(80)		(479)		—
Proceeds from pre-petition revolving credit facility borrowings	—		—		3,656
Payments on pre-petition revolving credit facility borrowings	—		—		(3,317)
Proceeds from DIP Facility borrowings	—		—		60
Payments on DIP Facility borrowings	—		(1,179)		(60)
Proceeds from issuance of senior notes, net	—		1,000		—
Proceeds from issuance of common stock	—		600		—
Proceeds from warrant exercise	2		—		—
Debt issuance and other financing costs	(3)		(8)		(109)
Cash paid to purchase debt	—		—		(94)
Cash paid for common stock dividends	(119)		—		—
Cash paid for preferred stock dividends	—		—		(22)
Other	(1)		—		(13)
Net cash provided by (used in) financing activities	(171)		(66)		101
Net increase (decrease) in cash, cash equivalents and restricted cash	788		(153)		273
Cash, cash equivalents and restricted cash, beginning of period	126		279		6
Cash, cash equivalents and restricted cash, end of period	$	914	$	126	$	279
Cash and cash equivalents	$	905	$	40	$	279
Restricted cash	9		86		—
Total cash, cash equivalents and restricted cash	$	914	$	126	$	279

6

OIL, NATURAL GAS AND NGL PRODUCTION AND AVERAGE SALES PRICES (unaudited)

	Successor
	Three Months Ended December 31, 2021
	Oil		Natural Gas		NGL		Total
	MBbl per day	$/Bbl	MMcf per day	$/Mcf	MBbl per day	$/Bbl	MBoe per day	$/Boe
Marcellus	—	—	1,315	4.94	—	—	219	29.66
Haynesville	—	—	1,249	5.20	—	—	208	31.18
Eagle Ford	54	77.67	125	4.59	18	36.16	92	58.31
Powder River Basin	8	76.41	48	5.48	3	47.91	20	53.71
Total	62	77.50	2,737	5.05	21	38.06	539	36.02
Average Realized Price (including realized derivatives)		50.93		2.92		38.06		22.18
	Predecessor
	Three Months Ended December 31, 2020
	Oil		Natural Gas		NGL		Total
	MBbl per day	$/Bbl	MMcf per day	$/Mcf	MBbl per day	$/Bbl	MBoe per day	$/Boe
Marcellus	—	—	1,113	1.82	—	—	186	10.92
Haynesville	—	—	559	2.28	—	—	92	13.68
Eagle Ford	125	41.27	172	2.60	21	15.26	125	31.13
Powder River Basin	10	40.39	51	2.69	3	20.78	22	27.81
Mid-Continent	3	39.99	25	2.56	3	15.11	10	22.60
Total	138	41.15	1,920	2.06	27	15.97	435	18.44
Average Realized Price (including realized derivatives)		40.77		1.95		15.97		17.90

7

	Successor
	Period from February 10, 2021 through December 31, 2021
	Oil		Natural Gas		NGL		Total
	MBbl per day	$/Bbl	MMcf per day	$/Mcf	MBbl per day	$/Bbl	MBoe per day	$/Boe
Marcellus	—	—	1,296	3.25	—	—	216	19.52
Haynesville	—	—	750	4.10	—	—	125	24.57
Eagle Ford	60	69.25	137	4.02	19	29.76	101	51.91
Powder River Basin	9	67.90	53	4.33	3	40.00	21	46.09
Total	69	69.07	2,236	3.61	22	31.37	463	29.19
Average Realized Price (including realized derivatives)		46.85		2.52		25.55		21.72
	Predecessor
	Period from January 1, 2021 through February 9, 2021
	Oil		Natural Gas		NGL		Total
	MBbl per day	$/Bbl	MMcf per day	$/Mcf	MBbl per day	$/Bbl	MBoe per day	$/Boe
Marcellus	—	—	1,233	2.42	—	—	206	14.49
Haynesville	—	—	543	2.44	—	—	90	14.62
Eagle Ford	74	53.37	165	2.57	18	23.94	120	40.27
Powder River Basin	10	51.96	61	2.92	4	34.31	24	34.25
Total	84	53.21	2,002	2.45	22	25.92	440	22.63
Average Realized Price (including realized derivatives)		49.06		2.62		31.42		21.46
	Non-GAAP Combined
	Year Ended December 31, 2021
	Oil		Natural Gas		NGL		Total
	MBbl per day	$/Bbl	MMcf per day	$/Mcf	MBbl per day	$/Bbl	MBoe per day	$/Boe
Marcellus	—	—	1,289	3.16	—	—	215	18.99
Haynesville	—	—	727	3.96	—	—	121	23.76
Eagle Ford	62	67.14	140	3.84	18	29.14	104	50.42
Powder River Basin	9	66.08	54	4.16	4	39.26	22	44.66
Total	71	67.01	2,210	3.49	22	30.77	462	28.51
Average Realized Price (including realized derivatives)		48.77		2.61		30.77		21.49
	Predecessor
	Year Ended December 31, 2020
	Oil		Natural Gas		NGL		Total
	MBbl per day	$/Bbl	MMcf per day	$/Mcf	MBbl per day	$/Bbl	MBoe per day	$/Boe
Marcellus	—	—	1,052	1.64	—	—	175	9.82
Haynesville	—	—	543	1.83	—	—	90	10.99
Eagle Ford	86	38.38	185	1.90	24	10.93	141	27.72
Powder River Basin	13	36.64	58	1.92	4	14.94	26	24.22
Mid-Continent	4	38.17	34	1.98	3	12.36	13	20.18
Total	103	38.16	1,872	1.73	31	11.55	445	16.84
Average Realized Price (including realized derivatives)		56.74		1.97		11.55		22.09

8

GROSS MARGIN (unaudited)

	Successor			Predecessor
	Three Months Ended December 31,			Three Months Ended December 31,
	2021			2020
($ in millions, except per unit)			$/Boe			$/Boe
Marcellus
Oil, natural gas and NGL sales	$	598	29.66	$	186	10.92
Production expenses	11		0.55	8		0.52
Gathering, processing and transportation expenses	83		4.13	75		4.40
Severance and ad valorem taxes	3		0.12	2		0.09
Gross margin	$	501	24.86	$	101	5.91
Haynesville
Oil, natural gas and NGL sales	$	597	31.18	$	117	13.68
Production expenses	29		1.51	9		1.23
Gathering, processing and transportation expenses	54		2.83	51		5.97
Severance and ad valorem taxes	10		0.55	8		0.94
Gross margin	$	504	26.29	$	49	5.54
Eagle Ford
Oil, natural gas and NGL sales	$	495	58.31	$	359	31.13
Production expenses	53		6.25	45		3.88
Gathering, processing and transportation expenses	79		9.29	117		10.19
Severance and ad valorem taxes	29		3.44	17		1.49
Gross margin	$	334	39.33	$	(179)	15.57
Powder River Basin
Oil, natural gas and NGL sales	$	96	53.71	$	56	27.81
Production expenses	10		5.54	8		3.60
Gathering, processing and transportation expenses	23		12.80	21		10.71
Severance and ad valorem taxes	10		5.43	5		2.55
Gross margin	$	53	29.94	$	(34)	10.95
Mid-Continent
Oil, natural gas and NGL sales	$	—	—	$	21	22.60
Production expenses	—		—	8		9.23
Gathering, processing and transportation expenses	—		—	5		5.49
Severance and ad valorem taxes	—		—	1		1.49
Gross margin	$	—	—	$	(14)	6.39

	Successor			Predecessor			Non-GAAP Combined			Predecessor
	Period from February 10, 2021 through December 31,			Period from January 1, 2021 through February 9,			Year Ended December 31,			Year Ended December 31,
	2021			2021			2021			2020
($ in millions, except per unit)			$/Boe			$/Boe			$/Boe			$/Boe
Marcellus
Oil, natural gas and NGL sales	$	1,370	19.52	$	119	14.49	$	1,489	18.99	$	631	9.82
Production expenses	34		0.49	4		0.50	38		0.49	32		0.50
Gathering, processing and transportation expenses	287		4.09	34		4.17	321		4.10	292		4.55
Severance and ad valorem taxes	9		0.12	1		0.07	10		0.12	6		0.09
Gross margin	$	1,040	14.82	$	80	9.75	$	1,120	14.28	$	301	4.68
Haynesville
Oil, natural gas and NGL sales	$	998	24.57	$	53	14.62	$	1,051	23.76	$	362	10.99
Production expenses	59		1.44	4		1.12	63		1.42	41		1.28
Gathering, processing and transportation expenses	118		2.91	11		2.93	129		2.91	188		5.69
Severance and ad valorem taxes	22		0.55	2		0.54	24		0.55	23		0.69
Gross margin	$	799	19.67	$	36	10.03	$	835	18.88	$	110	3.33
Eagle Ford
Oil, natural gas and NGL sales	$	1,712	51.91	$	193	40.27	$	1,905	50.42	$	1,428	27.72
Production expenses	173		5.25	21		4.24	194		5.13	201		3.89
Gathering, processing and transportation expenses	290		8.79	45		9.32	335		8.85	475		9.23
Severance and ad valorem taxes	96		2.91	13		2.69	109		2.88	92		1.79
Gross margin	$	1,153	34.96	$	114	24.02	$	1,267	33.56	$	660	12.81
Powder River Basin
Oil, natural gas and NGL sales	$	321	46.09	$	33	34.25	$	354	44.66	$	231	24.22
Production expenses	31		4.45	3		3.37	34		4.32	42		4.41
Gathering, processing and transportation expenses	85		12.20	12		12.53	97		12.24	100		10.52
Severance and ad valorem taxes	31		4.48	2		2.88	33		4.29	23		2.41
Gross margin	$	174	24.96	$	16	15.47	$	190	23.81	$	66	6.88
Mid-Continent
Oil, natural gas and NGL sales	$	—	—	$	—	—	$	—	—	$	93	20.18
Production expenses	—		—	—		—	—		—	57		12.56
Gathering, processing and transportation expenses	—		—	—		—	—		—	27		5.76
Severance and ad valorem taxes	—		—	—		—	—		—	5		1.16
Gross margin	$	—	—	$	—	—	$	—	—	$	4	0.70

9

CAPITAL EXPENDITURES ACCRUED (unaudited)

	Successor		Predecessor
	Three Months Ended December 31, 2021		Three Months Ended December 31, 2020
($ in millions)
Drilling and completion capital expenditures:
Marcellus	$	72	$	71
Haynesville	131		39
Eagle Ford	32		45
Powder River Basin	21		4
Total drilling and completion capital expenditures	256		159
Leasehold and additions to other PP&E	7		4
Capitalized interest	5		2
Total capital expenditures	$	268	$	165

	Successor		Predecessor		Non-GAAP Combined		Predecessor
	Period from February 10, 2021 through December 31, 2021		Period from January 1, 2021 through February 9, 2021		Year Ended December 31, 2021		Year Ended December 31, 2020
($ in millions)
Drilling and completion capital expenditures:
Marcellus	$	239	$	30	$	269	$	263
Haynesville	278		22		300		141
Eagle Ford	109		9		118		378
Powder River Basin	35		—		35		95
Mid-Continent	—		—		—		2
Total drilling and completion capital expenditures	661		61		722		879
Leasehold and additions to other PP&E	12		—		12		26
Capitalized interest	11		1		12		15
Total capital expenditures	$	684	$	62	$	746	$	920

10

OIL AND NATURAL GAS HEDGING POSITIONS AS OF FEBRUARY 21, 2022 (a)

Crude Oil Swaps
	Volume (MMBbls)	Avg. NYMEX Price of Swaps
Q1 2022 (b)	3.1	$	43.57
Q2 2022	2.8	$	43.12
Q3 2022	2.7	$	44.85
Q4 2022	2.6	$	45.92
Total 2022	11.2	$	44.30
Total 2023	1.9	$	47.17

Crude Oil Two-Way Collars
	Volume (Bcf)	Avg. NYMEX Bought Put Price		Avg. NYMEX Sold Call Price
Total 2023	4.4	$	65.00	$	79.09

Oil Basis Protection Swaps
	Volume (MMBbls)	Avg. NYMEX plus/(minus)
Q1 2022 (b)	3.2	$	0.53
Q2 2022	3.6	$	0.60
Q3 2022	3.5	$	0.89
Q4 2022	3.5	$	0.89
Total 2022	13.8	$	0.73
Total 2023	6.2	$	0.96

Natural Gas Swaps
	Volume (Bcf)	Avg. NYMEX Price of Swaps
Q1 2022 (b)	177	$	2.88
Q2 2022	130	$	2.60
Q3 2022	134	$	2.63
Q4 2022	117	$	2.60
Total 2022	558	$	2.69
Total 2023	229	$	2.69
Total 2024	103	$	2.67
Total 2025	27	$	2.65

11

Natural Gas Two-Way Collars
	Volume (Bcf)	Avg. NYMEX Bought Put Price		Avg. NYMEX Sold Call Price
Q1 2022 (b)	18	$	2.50	$	2.86
Q2 2022	90	$	3.33	$	4.41
Q3 2022	94	$	3.41	$	4.56
Q4 2022	120	$	3.12	$	4.27
Total 2022	322	$	3.23	$	4.31
Total 2023	234	$	3.02	$	4.03

Natural Gas Three-Way Collars
	Volume (Bcf)	Avg. NYMEX Sold Put Price		Avg. NYMEX Bought Put Price		Avg. NYMEX Sold Call Price
Q2 2022	7	$	2.41	$	2.90	$	3.43
Q3 2022	6	$	2.41	$	2.90	$	3.43
Q4 2022	6	$	2.41	$	2.90	$	3.43
Total 2022	19	$	2.41	$	2.90	$	3.43
Total 2023	4	$	2.50	$	3.40	$	3.79

Natural Gas Written Call Options
	Volume (Bcf)	Avg. NYMEX strike price
Total 2023	18	$	3.29

Natural Gas Basis Protection Swaps
	Volume (Bcf)	Avg. NYMEX plus/(minus)
Q1 2022 (b)	92	$	(0.07)
Q2 2022	56	$	(0.14)
Q3 2022	56	$	(0.14)
Q4 2022	49	$	0.05
Total 2022	253	$	(0.08)
Total 2023	97	$	0.05
Total 2024	30	$	(0.19)
Total 2025	5	$	(0.21)

____________________________________________

(a)Assumes closing of the Chief transaction prior to April 2022.

(b)Includes amounts settled in January and February 2022.

12

NON-GAAP FINANCIAL MEASURES

As a supplement to the financial results prepared in accordance with U.S. GAAP, Chesapeake’s quarterly earnings releases contain certain financial measures that are not prepared or presented in accordance with U.S. GAAP. These non-GAAP financial measures include Adjusted Net Income (Loss) Attributable to Chesapeake, Adjusted EBITDAX, Adjusted Free Cash Flow and Net Debt. A reconciliation of each financial measure to its most directly comparable GAAP financial measure is included in the tables below.

These financial measures are non-GAAP and should not be considered as an alternative to, or more meaningful than, net income (loss), earnings (loss) per common share or cash flow provided by operating activities prepared in accordance with GAAP.

Chesapeake believes that the non-GAAP measures presented, when viewed in combination with its financial measures prepared in accordance with GAAP, provide useful information as they exclude certain items management believes affects the comparability of operating results. Management believes these adjusted financial measures are a meaningful adjunct to earnings and cash flows calculated in accordance with GAAP because (a) management uses these financial measures to evaluate the company’s trends and performance relative to other oil and natural gas producing companies, (b) these financial measures are comparable to estimates provided by securities analysts, and (c) items excluded generally are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provide by the company generally excludes information regarding these types of items.

Because not all companies use identical calculations, Chesapeake’s non-GAAP measures may not be comparable to similar titled measures of other companies.

13

RECONCILIATION OF ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE (unaudited)

	Successor				Predecessor
	Three Months Ended December 31, 2021				Three Months Ended December 31, 2020
	$		$/Share		$		$/Share
($ in millions, except per share data)
Net income (loss) available to common stockholders (GAAP)	$	1,434	$	12.90	$	(416)	$	(42.54)
Effect of dilutive securities	—		(1.77)		—		—
Diluted income (loss) available to common stockholders (GAAP)	$	1,434	$	11.13	$	(416)	$	(42.54)
Adjustments:
Unrealized gains on oil and natural gas derivatives	(1,163)		(9.03)		(45)		(4.59)
Separation and other termination costs	—		—		1		0.10
Gains on sales of assets	(3)		(0.02)		(29)		(2.97)
Other operating expense, net	89		0.69		11		1.12
Impairments	—		—		13		1.33
Reorganization items, net	—		—		579		59.21
Other	—		—		(4)		(0.41)
Income tax benefit(a)	(49)		(0.38)		—		—
Adjusted net income attributable to common stockholders (Non-GAAP)	$	308	$	2.39	$	110	$	11.25

14

	Successor				Predecessor
	Period from February 10, 2021 through December 31, 2021				Period from January 1, 2021 through February 9, 2021				Year Ended December 31, 2020
	$		$/Share		$		$/Share		$		$/Share
($ in millions, except per share data)
Net income (loss) available to common stockholders (GAAP)	$	945	9.29		$	5,383	550.35		$	(9,756)	(998.26)
Effect of dilutive securities	—		(1.17)		—		(14.84)		—		—
Diluted income (loss) available to common stockholders (GAAP)	$	945	8.12		$	5,383	$	534.51	$	(9,756)	(998.26)
Adjustments:
Unrealized (gains) losses on oil and natural gas derivatives	(41)		(0.35)		369		36.64		259		26.50
Separation and other termination costs	11		0.09		22		2.18		44		4.50
Gains on sales of assets	(12)		(0.10)		(5)		(0.50)		(30)		(3.07)
Other operating expense (income), net	93		0.79		(12)		(1.19)		79		8.08
Impairments	1		0.01		—		—		8,535		873.33
Exploration expense - impairment of unproved properties	—		—		—		—		272		27.83
Noncontrolling interests - impairment of unproved properties	—		—		—		—		(16)		(1.64)
Gains on purchases or exchanges of debt	—		—		—		—		(65)		(6.65)
G&A reorganization expenses	—		—		—		—		43		4.40
Reorganization items, net	—		—		(5,569)		(552.97)		796		81.46
Other	(18)		(0.15)		—		—		17		1.74
Income tax benefit(a)	(49)		(0.42)		—		—		—		—
Tax effect of adjustments(b)	(13)		(0.11)		(57)		(5.66)		(11)		(1.13)
Adjusted net income available to common stockholders (Non-GAAP)	917		7.88		131		13.01		167		17.09
Preferred stock dividends	—		—		—		—		22		2.25
Adjusted net income attributable to Chesapeake (Non-GAAP)	$	917	$	7.88	$	131	$	13.01	$	189	19.34

(a)

In the 2021 Successor Period and 2021 Successor Quarter, we recorded a net deferred tax liability of $49 million associated with the acquisition of Vine Energy, Inc. As a result of recording this net deferred tax liability through business combination accounting, we released a corresponding amount of the valuation allowance that we maintain against our net deferred tax asset position. This release resulted in an income tax benefit of $49 million.

(b)

The 2021 Successor Period includes a tax effect attributed to the 2021 Successor Third Quarter reconciling adjustments using an estimated 2% annual effective tax rate. The 2021 Predecessor Period includes an income tax benefit of $57 million attributed to deferred income tax effects associated with Predecessor accumulated other comprehensive income, eliminated in fresh start accounting. The 2020 Predecessor Period includes a tax effect attributed to the 2020 Predecessor First Quarter reconciling adjustments using an estimated 0.14% annual effective tax rate.

15

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDAX (unaudited)

	Successor		Predecessor
	Three Months Ended December 31, 2021		Three Months Ended December 31, 2020
($ in millions)
Net income (loss) (GAAP)	$	1,434	$	(416)
Adjustments:
Interest expense	26		24
Income tax benefit	(39)		(6)
Depreciation, depletion and amortization	340		166
Exploration	3		10
Unrealized gains on oil and natural gas derivatives	(1,163)		(45)
Separation and other termination costs	—		1
Gains on sales of assets	(3)		(29)
Other operating expense, net	89		11
Impairments	—		13
Reorganization items, net	—		579
Other	—		(4)
Adjusted EBITDAX (Non-GAAP)	$	687	$	304

	Successor		Predecessor		Non-GAAP Combined		Predecessor
	Period from February 10, 2021 through December 31, 2021		Period from January 1, 2021 through February 9, 2021		Year Ended December 31, 2021		Year Ended December 31, 2020
($ in millions)
Net income (loss) (GAAP)	$	945	$	5,383	$	6,328	$	(9,750)
Adjustments:
Interest expense	73		11		84		331
Income tax benefit	(49)		(57)		(106)		(19)
Depreciation, depletion and amortization	919		72		991		1,097
Exploration	7		2		9		427
Unrealized (gains) losses on oil and natural gas derivatives	(41)		369		328		259
Separation and other termination costs	11		22		33		44
Gains on sales of assets	(12)		(5)		(17)		(30)
Other operating expense (income), net	93		(12)		81		79
Impairments	1		—		1		8,535
Gains on purchases or exchanges of debt	—		—		—		(65)
G&A reorganization expenses	—		—		—		43
Reorganization items, net	—		(5,569)		(5,569)		796
Other	(18)		—		(18)		17
Adjusted EBITDAX (Non-GAAP)	$	1,929	$	216	$	2,145	$	1,764

16

ADJUSTED FREE CASH FLOW

	Successor		Predecessor
	Three Months Ended December 31, 2021		Three Months Ended December 31, 2020
($ in millions)
Net cash provided by operating activities (GAAP)	$	563	$	9
Cash paid for reorganization items, net	—		22
Cash paid for acquisition costs	74		—
Capital expenditures	(265)		(169)
Adjusted free cash flow (Non-GAAP)	$	372	$	(138)

	Successor		Predecessor		Non-GAAP Combined		Predecessor
	Period from February 10, 2021 through December 31, 2021		Period from January 1, 2021 through February 9, 2021		Year Ended December 31, 2021		Year Ended December 31, 2020
($ in millions)
Net cash provided by (used in) operating activities (GAAP)	$	1,809	$	(21)	$	1,788	$	1,164
Cash paid for reorganization items, net	65		66		131		140
Cash paid for acquisition costs	74		—		74		—
Capital expenditures	(669)		(66)		(735)		(1,142)
Adjusted free cash flow (Non-GAAP)	$	1,279	$	(21)	$	1,258	$	162

NET DEBT

	Successor
	December 31, 2021
($ in millions)
Total debt (GAAP)	$	2,278
Premiums and issuance costs on debt	(107)
Principal amount of debt	2,171
Cash and cash equivalents	905
Net debt (Non-GAAP)	$	1,266

17