View 2021 Annual Report

DEAR FELLOW SHAREHOLDERS:

We sit at a critical point in human history. Inflation is increasing at its fastest rate in 40 years, stifling economic growth and impacting the cost of nearly every product we have come to rely on. Russia’s senseless invasion of Ukraine and the suffering it has brought to the Ukrainian people has been shocking and heartbreaking. This gratuitous war and the economic impact brought on by decades of failed public policy has reinforced that we must think long and hard about how to increase the world’s energy security, forcing a long-overdue conversation about where energy comes from, its cost and what it means to people’s daily lives.

This conversation around energy sourcing has surfaced the debate about whether climate concerns “or” energy security should be the determining factor in setting energy policy. We are strident in our view that “or” is the wrong question and policy makers should be seeking solutions that deliver lower carbon energy AND security from geopolitical pressure AND reliable deliverability AND affordability. Chesapeake is “Answering the Call” to deliver energy that meets all of these needs.

Constructive and honest dialogue between industry, government officials and NGO groups is needed to develop practical long-term solutions. We recognize to be included in constructive dialogue on energy supply our industry must commit to reducing our carbon footprint further and be accountable for those reductions over time.

Delivering reliable, affordable, lower carbon energy will not happen in a vacuum. First and foremost, it requires that Chesapeake build a sustainable business, and 2021 proved to be a foundational year in that effort. Behind a committed workforce and a new Board of Directors and management team, Chesapeake demonstrated that it has the strategy, assets and people to become a standard-bearer for the modern energy industry.

This starts with our relentless focus on safely and responsibly executing the critical value drivers for our company. In 2021, we made significant strides across each of these areas, and we are well on our way to building upon that success in 2022 and beyond:

Our commitment to stakeholders is that we will not cut corners in our pursuit of excellence. This starts with our firm belief that above all else, we must be stewards of the communities in which we live and operate. This is a responsibility we do not take lightly, and it is one that guides our values and culture. It is why we fervently embrace a lower carbon future and are proud to play an important role in meeting the ambitions of the Paris Agreement. It is also why we are constantly innovating across all aspects of our business, challenging the status quo, and driving for solutions to make us a stronger, more competitive enterprise.

While a single company may not solve the energy security challenge facing the world today, we believe Chesapeake has a unique opportunity to play a leadership role in that undertaking. Our desire to answer the call for reliable, affordable, lower carbon energy unites our employees, management team and Board, and we are eager to continue our pursuit of that worthy mission.

Thank you for your investment in our company.

Sincerely,

Domenic J. “Nick” Dell’Osso, Jr.
President, Chief Executive Officer and Director

Michael A. Wichterich
Executive Chairman of the Board