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NEWS RELEASE FOR IMMEDIATE RELEASE MAY 11 , 2021 ● ● OKLAHOMA CITY , May 11 , 2021 – Chesapeake Energy Corporation ( NASDAQ : CHK ) today reported 2021 first quarter results , launched a cash dividend program based on strong operating cash flow performance and announced its updated 2021 guidance . Highlights include : Successor net income totaled $ 295 million , or $ 2.75 per diluted share Generated adjusted EBITDAX ( a non - GAAP measure ) of $ 510 million for the combined 2021 Successor and Predecessor Periods ( January 1 , 2021 - March 31 , 2021 ) CHESAPEAKE CHESAPEAKE ENERGY CORPORATION REPORTS 2021 FIRST QUARTER RESULTS , INITIATES COMMON STOCK DIVIDEND AND ANNOUNCES UPDATED GUIDANCE ENERGY March 31 , 2021 unrestricted cash balance of $ 340 million ; reducing March 31 , 2021 net debt ( a non GAAP measure ) to adjusted 2021E EBITDAX ratio to 0.6x Launched sustainable dividend at an initial annual rate of $ 1.375 per share to be paid quarterly beginning in the 2021 Second Quarter ; base dividend built to withstand commodity price volatility with incremental cash return strategy to be defined by year end 2021 Increased five - year cumulative free cash flow ( a non - GAAP measure ) outlook to ~ $ 3 billion Mike Wichterich , Chesapeake's Board Chairman and Interim Chief Executive Officer , commented , " Our strong first quarter results demonstrate the significant value creating opportunities that lie ahead for Chesapeake . We are committed to returning meaningful cash to our shareholders and are pleased to announce a highly competitive dividend that is built to withstand commodity price cycles . With our talented employees , pristine balance sheet , operational leadership , and free cash flow outlook , I firmly believe Chesapeake is poised to deliver differential returns to our shareholders . " INVESTOR CONTACT : Brad Sylvester , CFA ( 405 ) 935-8870 ir@chk.com Dividend Policy and Balance Sheet Update Following Chesapeake's emergence from Chapter 11 restructuring proceedings , the company generated $ 409 million of operating cash flow and ended the quarter with $ 340 million of unrestricted cash on hand . As of April 30 , 2021 , Chesapeake had approximately $ 500 million of unrestricted cash on hand . With the company's strong liquidity position and free cash flow generation , Chesapeake's Board of Directors has declared an annual dividend on its common shares of $ 1.375 per share . The dividend will be paid quarterly , with the first such payment to be payable on June 10 , 2021 to shareholders of record at the close of business on May 24 , 2021 . Operations Update Chesapeake achieved an average net production rate of approximately 436,000 barrels of oil equivalent per day ( approximately 77 percent natural gas and 23 percent total liquids ) during the 2021 first quarter . Chesapeake is currently operating seven rigs across its portfolio , with three rigs in Appalachia , three rigs in Haynesville and one rig in South Texas . MEDIA CONTACT : Gordon Pennoyer ( 405 ) 935-8878 media@chk.com CHESAPEAKE ENERGY CORPORATION 6100 North Western Avenue P.O. Box 18496 Oklahoma City , OK 73154