Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved Grade “A” MiQ and Grade “A-” EO100™ Recertification for Marcellus Operations
• Goal to achieve net zero GHG emissions (Scope 1 and 2) by 2035

Social Achievements

• Combined employee and contractor Total Recordable Incident Rate for the first half of 2023 was more than 50% improved from the same time period last year

Governance Achievements

• Received recent upgrades to Ba1 and BB+ from Moody’s and Fitch Ratings, respectively; continued path towards Investment Grade credit status

Climate Goals & Targets

Environmental Challenges

• Volatility of natural gas, oil and NGL prices
• Legislative, regulatory and ESG initiatives addressing environmental concerns
• Competition in the natural gas and oil exploration and production industry

Mitigation Strategies

• Conservative financial policy
• Flexible operating plan prepared for adjustments based on market conditions
• Commitment to safely answering the call for affordable, reliable, lower carbon energy

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: MiQ methane emissions standard, Equitable Origin's EO100™ Standard for Responsible Energy Development

Environmental Metrics

ESG Focus Areas

• Sustainability
• Net Zero Emissions

Environmental Achievements

• Released 2023 Sustainability Report outlining our commitment to transparency and enhanced disclosures
• Achieved peer-leading combined TRIR of 0.14 in 2023, tracking similar performance in 1H24
• Consistent and measurable progress on our path to net zero

Social Achievements

• Achieved peer-leading combined TRIR of 0.14 in 2023, tracking similar performance in 1H24

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Negative public perceptions of our industry
• Competition in the natural gas and oil exploration and production industry
• Volatility of natural gas, oil and NGL prices
• Risks from regional epidemics or pandemics and related economic turmoil, including supply chain constraints
• Significant capital expenditures are required to replace our reserves and conduct our business
• Uncertainties inherent in estimating quantities of natural gas, oil and NGL reserves and projecting future rates of production and the amount and timing of development expenditures
• Drilling and operating risks and resulting liabilities
• Our need to secure adequate supplies of water for our drilling operations and to dispose of or recycle the water used
• Pipeline and gathering system capacity constraints and transportation interruptions
• Terrorist activities and/or cyber-attacks adversely impacting our operations
• Risks from failure to protect personal information and data and compliance with data privacy and security laws and regulations
• Disruption of our business by natural or human causes beyond our control
• A deterioration in general economic, business or industry conditions
• The impact of inflation and commodity price volatility on our business, financial condition, employees, contractors, vendors and the global demand for natural gas and oil and on U.S. and global financial markets
• Our inability to access the capital markets on favorable terms
• The limitations on our financial flexibility due to our level of indebtedness and restrictive covenants from our indebtedness
• Legislative, regulatory and ESG initiatives, addressing environmental concerns
• Federal and state tax proposals affecting our industry

Mitigation Strategies

• Improved capital efficiency driven by high-grading inventory, optimized engineering designs and drilling execution, and realizing ~10% YOY deflation
• Saltwater disposal spend trending lower YOY due to route optimization, increased utilization of owned assets, strategic partnerships with vendors, and realization of deflation
• Reducing rig/frac activity as planned
• Improved drilling efficiencies creating larger DUC count
• Hedge-the-wedge strategy to de-risk return on capital investment
• Premier balance sheet provides confidence to deliver sustainable returns through-cycle
• Commitment to strong balance sheet, low leverage (<1.0x net debt / EBITDAX)
• Investment Grade characteristics will facilitate lower cost of capital over time
• Hedge book enables CHK to maintain a strong leverage profile even at low commodity prices

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed