By comparison, average prices realized during the 2011 third quarter (including realized gains or losses from natural gas, oil and NGL derivatives and excluding unrealized gains or losses on such derivatives) were $4.82 per mcf of natural gas, $82.47 per bbl of oil and $41.16 per bbl of NGL, for a realized natural gas equivalent price of $5.78 per mcfe. Realized gains from natural gas, oil and NGL hedging activities during the 2011 third quarter generated a $1.43 gain per mcf of natural gas, a $1.71 loss per bbl of oil and a $2.88 loss per bbl of NGL for a 2011 third quarter realized hedging gain of $344 million, or $1.12 per mcfe. The company’s realized cash hedging gains since January 1, 2006, have been $8.8 billion, or $1.39 per mcfe.

The following table summarizes Chesapeake’s 2012 and 2013 open natural gas and oil swap positions as of November 1, 2012. Depending on changes in natural gas and oil futures markets and management’s view of underlying supply and demand trends, Chesapeake may increase or decrease some or all of its hedging positions at any time in the future without notice.
  Natural Gas       Oil

% of Forecasted Production

NYMEX Natural Gas

% of Forecasted Production

4Q 2012 76% $3.06 76% $99.14



Details of the company’s quarter-end hedging positions will be provided in the company’s Form 10-Q filing with the Securities and Exchange Commission (SEC), and current positions are disclosed in summary format in management’s Outlook dated November 1, 2012, which is attached to this release as Schedule “A,” beginning on page 24. The Outlook has been updated from the Outlook dated August 6, 2012, attached as Schedule “B,” which begins on page 27, to reflect various updated information. Management and the board of directors are currently reviewing operational plans for 2013 and beyond, which could result in changes to the Outlook attached as Schedule “A.”

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