OKLAHOMA
CITY, Oct. 31, 2023 /PRNewswire/ -- Chesapeake
Energy Corporation (NASDAQ:CHK) and Vitol Inc. ("Vitol") today
announced the entrance into a Heads of Agreement ("HOA") with
Chesapeake Energy Marketing L.L.C. ("Chesapeake") a subsidiary of
Chesapeake Energy Corporation.
Under the HOA, Chesapeake will supply up to 1 million tonnes of
LNG per annum to Vitol with the purchase price indexed to Japan
Korea Marker ("JKM") for a period of 15 years. Following the
execution of the HOA, Chesapeake and Vitol will jointly select the
most optimal liquefaction facility in the
United States to liquify the gas produced by Chesapeake for
delivery to Vitol. The HOA has a targeted start date in
2028.
Nick Dell'Osso, Chesapeake President and Chief Executive
Officer, said, "We are pleased to expand our relationship with
Vitol to deliver independently certified reliable, affordable,
lower carbon energy to global markets in need. Today's announcement
marks another important step on our path to 'Be LNG Ready', and is
further recognition of the premium rock, returns, and runway of our
advantaged portfolio and the strength of our financial position. We
look forward to entering into additional agreements as export
capacity continues to come online."
Ben Marshall, Head of Vitol
Americas, said: "We are excited to build upon our existing
relationship with Chesapeake. The global energy landscape has
changed significantly in the last two years, which has highlighted
the importance of U.S. natural gas production and liquefaction in
satisfying the world's energy needs. Global LNG demand is
experiencing tremendous growth and Vitol continues to strengthen
its position to safely and reliably deliver cost effective,
flexible solutions to our customers around the world."
About Chesapeake:
Headquartered in
Oklahoma City, Chesapeake Energy
Corporation (NASDAQ:CHK) is powered by dedicated and innovative
employees who are focused on discovering and responsibly developing
leading positions in top U.S. oil and gas plays. With a goal to
achieve net zero GHG emissions (Scope 1 and 2) by 2035, Chesapeake
is committed to safely answering the call for affordable, reliable,
lower carbon energy.
About Vitol:
Vitol is a leader in the
energy sector with a presence across the spectrum: from oil through
to power, renewables and carbon. Chartering circa 6,000 sea voyages
every year, it trades 7.4 million barrels per day of crude oil and
products, 13.7 million mt LNG per annum and has
contracted sales of 1,500 TWh of natural gas each year.
Vitol's clients include national oil companies,
multinationals, leading industrial companies and utilities. Founded
in Rotterdam in 1966, today Vitol
serves clients from some 40 offices worldwide and is invested in
energy assets globally including: gas to power
production, thermal and renewable power plants with circa 1.2 GW of
capacity, more than 17 million m3 of storage globally,
500,000 barrels per day of refining capacity, over 7,000 service
stations and a growing portfolio of transitional and renewable
energy assets. Revenues in 2022 were $505
billion.
For more information:
www.vitol.com
Forward-Looking Statements
This release includes forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 (the
"Exchange Act"). Forward-looking statements include our current
expectations or forecasts of future events, including matters
relating to the continuing effects of the impact of inflation and
commodity price volatility resulting from instability in
Europe and the Middle East, COVID-19 and related supply chain
constraints, and the impact of each on our business, financial
condition, results of operations and cash flows, the potential
effects of the Plan on our operations, management, and employees,
actions by, or disputes among or between, members of OPEC+ and
other foreign oil-exporting countries, market factors, market
prices, our ability to meet debt service requirements, our ability
to continue to pay cash dividends, the amount and timing of any
cash dividends, and our ESG initiatives. Forward-looking and other
statements in this release regarding our environmental, social and
other sustainability plans and goals are not an indication that
these statements are necessarily material to investors or required
to be disclosed in our filings with the SEC. In addition,
historical, current, and forward-looking environmental, social and
sustainability-related statements may be based on standards for
measuring progress that are still developing, internal controls and
processes that continue to evolve, and assumptions that are subject
to change in the future. Forward-looking statements often address
our expected future business, financial performance and financial
condition, and often contain words such as "expect," "could,"
"may," "anticipate," "intend," "plan," "ability," "believe,"
"seek," "see," "will," "would," "estimate," "forecast," "target,"
"guidance," "outlook," "opportunity" or "strategy."
Although we believe the expectations and forecasts reflected in
our forward-looking statements are reasonable, they are inherently
subject to numerous risks and uncertainties, most of which are
difficult to predict and many of which are beyond our control. No
assurance can be given that such forward-looking statements will be
correct or achieved or that the assumptions are accurate or will
not change over time. Particular uncertainties that could cause our
actual results to be materially different than those expressed in
our forward-looking statements include:
- the impact of inflation and commodity price volatility
resulting from instability in Europe and the Middle East, COVID-19 and related labor and
supply chain constraints, along with the effects of the current
global economic environment, including impacts from higher interest
rates and recent bank closures and liquidity concerns at certain
financial institutions, on our business, financial condition,
employees, contractors, vendors and the global demand for natural
gas and oil and U.S. and on world financial markets;
- our ability to comply with the covenants under the credit
agreement for our New Credit Facility and other indebtedness;
- risks related to acquisitions or dispositions, or potential
acquisitions or dispositions;
- our ability to realize anticipated cash cost reductions;
- the volatility of natural gas, oil and NGL prices, which are
affected by general economic and business conditions, as well as
increased demand for (and availability of) alternative fuels and
electric vehicles;
- a deterioration in general economic, business or industry
conditions;
- uncertainties inherent in estimating quantities of natural gas,
oil and NGL reserves and projecting future rates of production and
the amount and timing of development expenditures;
- our ability to replace reserves and sustain production;
- drilling and operating risks and resulting liabilities;
- our ability to generate profits or achieve targeted results in
drilling and well operations;
- the limitations our level of indebtedness may have on our
financial flexibility;
- our ability to achieve and maintain ESG certifications, goals
and commitments;
- our inability to access the capital markets on favorable
terms;
- the availability of cash flows from operations and other funds
to fund cash dividends and repurchases of equity securities, to
finance reserve replacement costs and/or satisfy our debt
obligations;
- write-downs of our natural gas and oil asset carrying values
due to low commodity prices;
- charges incurred in response to market conditions;
- limited control over properties we do not operate;
- leasehold terms expiring before production can be
established;
- commodity derivative activities resulting in lower prices
realized on natural gas, oil and NGL sales;
- the need to secure derivative liabilities and the inability of
counterparties to satisfy their obligations;
- potential over-the-counter derivatives regulations limiting our
ability to hedge against commodity price fluctuations;
- adverse developments or losses from pending or future
litigation and regulatory proceedings, including royalty
claims;
- our need to secure adequate supplies of water for our drilling
operations and to dispose of or recycle the water used;
- pipeline and gathering system capacity constraints and
transportation interruptions;
- legislative, regulatory and ESG initiatives, addressing
environmental concerns, including initiatives addressing the impact
of global climate change or further regulating hydraulic
fracturing, methane emissions, flaring or water disposal;
- terrorist activities and/or cyber-attacks adversely impacting
our operations;
- an interruption in operations at our headquarters due to a
catastrophic event;
- federal and state tax proposals affecting our industry;
- competition in the natural gas and oil exploration and
production industry;
- negative public perceptions of our industry;
- effects of purchase price adjustments and indemnity
obligations;
- the ability to execute on our business strategy following
emergence from bankruptcy; and
- other factors that are described under Risk Factors
in Item 1A of our 2022 Form 10-K.
We caution you not to place undue reliance on the
forward-looking statements contained in this release which speak
only as of the filing date, and we undertake no obligation to
update this information. We urge you to carefully review and
consider the disclosures in this release and our filings with the
SEC that attempt to advise interested parties of the risks and
factors that may affect our business.
INVESTOR CONTACT:
|
MEDIA CONTACT:
|
Chris Ayres
(405)
935-8870
ir@chk.com
|
Brooke Coe
(405)
935-8878
media@chk.com
|
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SOURCE Chesapeake Energy Corporation