OKLAHOMA
CITY, March 6, 2023 /PRNewswire/ -- Chesapeake
Energy Corporation (NASDAQ: CHK) and Gunvor Group Ltd today
announced that Gunvor Singapore Pte Ltd ("Gunvor") has entered 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 2 million tonnes of
LNG per annum to Gunvor with the purchase price indexed to Japan
Korea Marker ("JKM") for a period of 15 years. Following the
execution of the HOA, Chesapeake and Gunvor will jointly select the
most optimal liquefaction facility in the
United States to liquify the gas produced by Chesapeake and
deliver the LNG to Gunvor on a Free-on-Board ("FOB") basis with a
targeted start date in 2027.
Nick Dell'Osso, Chesapeake President and Chief Executive
Officer, said "This agreement reflects the powerful combination of
the premium rock, returns, and runway of our competitively
positioned Haynesville natural gas assets combined with the
strength of our balance sheet and financial position to securely
supply global LNG markets. We are pleased to partner with Gunvor, a
leading global commodity and energy logistics company with a deep
LNG track record, to deliver independently certified reliable,
affordable, lower carbon energy to markets in need. Today marks an
important initial step on our path to being LNG ready and we look
forward to entering into additional agreements while export
capacity continues to come online."
Kalpesh Patel, Co-Head of LNG
Trading and a member of the Executive Committee of Gunvor, said,
"We are excited to establish this partnership with Chesapeake which
will further enhance our global LNG portfolio. We believe our
trading expertise together with our robust shipping fleet will not
only contribute to the competitive shipping costs, but also ensure
reliable offtake operations for Chesapeake and the liquefaction
facility which we will jointly select. We very much look forward to
the long-term relationship with Chesapeake."
About Chesapeake:
Headquartered in
Oklahoma City, Chesapeake Energy
Corporation is powered by dedicated and innovative employees who
are focused on discovering and responsibly developing our 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 Gunvor:
Gunvor is one of the
world's largest independent commodities trading houses by turnover,
creating logistics solutions that safely and efficiently move
physical energy from where it is sourced and stored to where it is
demanded most. Gunvor has strategic investments in industrial
infrastructure — refineries, pipelines, storage and terminals —
that complement our core trading activity and generate sustainable
value across the global supply chain for our customers. The
company, which in 2021 generated U.S. $135
billion in revenue on 240 million MT of volumes, is the
leading independent global trader of liquefied natural gas
(LNG).
Forward-Looking Statements
This news 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. Forward-looking
statements are statements other than statements of historical fact.
They include statements that give our current expectations,
management's outlook guidance or forecasts of future events,
expected natural gas and oil growth trajectory, projected cash flow
and liquidity, our ability to enhance our cash flow and financial
flexibility, dividend plans, future production and commodity mix,
plans and objectives for future operations, ESG initiatives, the
ability of our employees, portfolio strength and operational
leadership to create long-term value, and the assumptions on which
such statements are based. 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.
Factors that could cause actual results to differ materially
from expected results include those described under "Risk Factors"
in Item 1A of our annual report on Form 10-K and any updates to
those factors set forth in Chesapeake's subsequent quarterly
reports on Form 10-Q or current reports on Form 8-K (available at
http://www.chk.com/investors/sec-filings). These risk factors
include: the ability to execute on our business strategy following
emergence from bankruptcy; the impact of the COVID-19 pandemic and
its effect on our business, financial condition, employees,
contractors and vendors, and on the global demand for oil and
natural gas and U.S. and world financial markets; risks related to
the acquisition of Chief E&D Holdings LP and affiliates of Tug
Hill, Inc. (together, "Chief"), including our ability to
successfully integrate the business of Chief into the company and
achieve the expected synergies from the Chief acquisition within
the expected timeframe; the volatility of oil, natural gas and NGL
prices; the limitations our level of indebtedness may have on our
financial flexibility; our inability to access the capital markets
on favorable terms; the availability of cash flows from operations
and other funds to fund cash dividends, to finance reserve
replacement costs or satisfy our debt obligations; write-downs of
our oil and natural gas asset carrying values due to low commodity
prices; our ability to replace reserves and sustain production;
uncertainties inherent in estimating quantities of oil, natural gas
and NGL reserves and projecting future rates of production and the
amount and timing of development expenditures; our ability to
generate profits or achieve targeted results in drilling and well
operations; leasehold terms expiring before production can be
established; commodity derivative activities resulting in lower
prices realized on oil, natural gas and NGL sales; the need to
secure derivative liabilities and the inability of counterparties
to satisfy their obligations; adverse developments or losses from
pending or future litigation and regulatory proceedings, including
royalty claims; charges incurred in response to market conditions;
drilling and operating risks and resulting liabilities; effects of
environmental protection laws and regulations on our business;
legislative and regulatory initiatives further regulating hydraulic
fracturing; our need to secure adequate supplies of water for our
drilling operations and to dispose of or recycle the water used;
impacts of potential legislative and regulatory actions addressing
climate change; federal and state tax proposals affecting our
industry; potential OTC derivatives regulation limiting our ability
to hedge against commodity price fluctuations; competition in the
oil and gas exploration and production industry; a deterioration in
general economic, business or industry conditions; negative public
perceptions of our industry; limited control over properties we do
not operate; pipeline and gathering system capacity constraints and
transportation interruptions; terrorist activities and
cyber-attacks adversely impacting our operations; and an
interruption in operations at our headquarters due to a
catastrophic event.
In addition, disclosures concerning the estimated
contribution of derivative contracts to our future results of
operations are based upon market information as of a specific date.
These market prices are subject to significant volatility. Our
production forecasts are also dependent upon many assumptions,
including estimates of production decline rates from existing wells
and the outcome of future drilling activity. We caution you not to
place undue reliance on our forward-looking statements that speak
only as of the date of this news release, and we undertake no
obligation to update any of the information provided in this news
release, except as required by applicable law. In addition, this
news release contains time-sensitive information that reflects
management's best judgment only as of the date of this news
release.
INVESTOR
CONTACT:
|
MEDIA
CONTACT:
|
Chris
Ayres
|
Brooke Coe
|
(405)
935-8870
|
(405)
935-8878
|
ir@chk.com
|
media@chk.com
|
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SOURCE Chesapeake Energy Corporation