Pennsylvania Update
We want to take this opportunity to update you, the stakeholders and elected officials of northeast Pennsylvania, about our operations, our activities in the community and how we are continuing to be a responsible community partner.
August 2024
Operational and Financial Update
On July 29, Chesapeake reported its 2024 second quarter financial and operating results. To learn more, see our news release, presentation and earnings highlights.
Nick Dell’Osso, Chesapeake’s President and Chief Executive Officer, said, “We continue to execute our business as we prudently manage current market conditions and prepare for our pending combination with Southwestern. We remain focused on operational improvements and enhancing capital efficiency. The efforts of our team have positioned us to lower our 2024 capital and production expense guidance by $50 million and approximately 8%, respectively. Importantly, we expect these improvements will be durable through cycles, positioning us to lower our breakeven costs while we build productive capacity to more efficiently reach consumers when demand recovers.”
2Q24 Marcellus Business Unit Snapshot
Drilling:
- Averaged 4 active rigs
- 25 wells drilled
Production:
- 4 wells turned-in-line
- 1.554 net production (bcfe/d)
- 57% of total company production
- 100% Responsibly Sourced Gas (RSG)
Employee Spotlight
Get to Know Matt Sheppard, Director of Government Affairs
For over 15 years, Matt Sheppard has been a leading voice of advocacy for Chesapeake and the industry-at-large. As Chesapeake’s Director of Government Affairs, Matt plays a pivotal role in shaping and advocating for sound energy policy at both the state and federal levels. Through years of building relationships with government officials, regulatory agencies, trade associations and community groups, he has become a trusted advisor in the legislative and regulatory process. His work includes helping policymakers understand what our industry does and how we’re working to deliver a sustainable energy future.
In addition to policymaking, Matt also informs Chesapeake’s Marcellus and Haynesville team members about state and federal regulatory developments that could impact our operations. It’s his goal that no one at Chesapeake is surprised by a government action.
He adds, “I help ensure our teams across our footprint have the information they need to make informed decisions regarding future development and strategic objectives. My primary goal is to keep Chesapeake ahead of the curve when it comes to policy developments, positioning the company to succeed.”
As a Pennsylvania local, Matt is closely looped into state policy matters in both Pennsylvania and Louisiana, serving on the boards of both the Marcellus Shale Coalition and LMOGA, in addition to his federal work. According to Matt, living in Pennsylvania plays an important role in his ability to advocate for local issues.
“It’s nice to live and work in Pennsylvania because natural gas plays such a significant role in the state’s economy and job market,” said Matt. “When I’m advocating for the issues that matter to our company, I’m also fighting for the jobs and interests of people in my community. We bring this same community-minded approach to our work in Louisiana as well.”
Matt has been married to his wife Penny for almost 26 years and together they’ve raised four kids. With two in college and two in high school, Matt is spending most of his ‘free’ time on the sidelines watching his youngest son and daughter play baseball and field hockey (respectively).
His next challenge includes supporting the Chesapeake-Southwestern integration. The merger not only enhances our operational capabilities, but also significantly strengthens our influence in the energy sector. Matt notes, “I’m excited about the expanded opportunities the merger creates for us to engage with policymakers and industry group, ensuring that natural gas continues to be recognized as a critical component of the energy transition. Our combined resources and expertise will enable us to drive innovation, advocate for sustainable energy policies, and play a pivotal role in shaping the future of energy.”
In The Community
Over the past quarter, Chesapeake’s Marcellus employees have been very active in the community.
- 14 H.E.L.P. events with 72 employees volunteering 305 hours
- Charitable donations made to 37 organizations
- Blood drive where 22 employees donated blood that saved 78 lives
- Participated in: Penn Tech Donor Recognition Reception, CHOP Full Plate Gala, Mobile Oilfield Learning Unit and Bradford County Department of Public Safety Open House
Highlights:
- Bradford County Conservation District Earth Day – Employees handed out seedlings and interacted with local residents.
- Wyoming and Bradford County Envirothon – We assisted high school students while they learned more about aquatic ecology, forestry, soil and land use, wildlife and current environmental issues.
- The Children’s House – Chesapeake employees helped with landscaping the grounds of CHCAC – a safe place for children and families to come when there are concerns about abuse or neglect.
- Lycoming County Fair – We have supported all county fairs in our operating area in 2024.
- CHOP (Child Hunger Outreach Partners) – We continued our regular monthly CHOP H.E.L.P. events to pack bags of food for the children in the local community.
State Game Lands 12 Tour in Bradford County
Mark your calendar in early October for the SGL 12 Tour that will highlight habitat enhancements, infrastructure improvements and hunting opportunities. The tour will showcase what Game Commission wildlife habitat crews, as well as dedicated volunteers from several conservation organizations, have accomplished on public land. Please check the Pennsylvania Game Commission website for the official date and more information. And be sure to come visit Chesapeake at our booth!
ESG Update
Chesapeake Releases 2023 Sustainability Report
The company issued its 2023 Sustainability Report, marking Chesapeake’s 12th consecutive year reporting on its environmental, social, and governance performance and its resilience in a lower carbon future. The Report can be accessed here and reflects the company’s commitment to transparency and enhanced disclosures.
Questions/Contact Information
Our team in Sayre is speaking with landowners every day as we prepare for future development. If you have questions, please reach out to any of the following on our team
Seth Caputo
Senior Staff Landman
Seth.Caputo@chk.com
Shannon Brooks
Landman
Shannon.Brooks@chk.com
Matt Sheppard
Government & Regulatory Affairs
Matt.Sheppard@chk.com