text: **6**| LETTER TO SHAREHOLDERS 
  
  vs. an asset gatherer — namely, lower debt and higher returns on capi- 
  tal. The market has received this plan with favor to date as our stock 
  price is already up 30% in the first quarter of 2011. In addition, having 
  recently closed the sale of our Fayetteville Shale assets to BHP Billiton 
  and recently initiated tender offers for repayment of at least $2.0 billion 
  of our long-term debt, we are already close to accomplishing the 25% 
  long-term debt reduction portion of our 25/25 Plan. Now we will focus 
  on delivering the other part of the equation, 25% growth in production 
  by year-end 2012. 
  
  factories can run in harvest mode for decades to come, which hopefully 
  can lead to a $100 stock price by year-end 2015. Again, this would be a 
  very considerable achievement, but your management team enjoys big 
  challenges and we look forward to discussing it further with you in the 
  quarters ahead. 
  
  **Great Assets = A Great Future**
  The very significant upward trajectory of value creation that Chesapeake 
  is on today is primarily driven by the quality of our assets, which feature 
  dominant positions in 16 of the 20 most important major unconvention- 
  al natural gas and liquids plays in the U.S. — the Barnett, Haynesville, 
  Bossier, Marcellus, Eagle Ford, Pearsall, Niobrara and Utica shales 
  and the Granite Wash, Cleveland, Tonkawa, Mississippian, Bone Spring, 
  Avalon, Wolfcamp and Wolfberry tight sands and fractured carbonates. 
  Having only missed the Bakken Shale play in the Williston Basin, having 
  passed on the Cana Shale play in Oklahoma and having sold out of 
  the Woodford and Fayetteville shale plays in Oklahoma and Arkansas 
  (for overall value creation of $5.4 billion), Chesapeake’s unrivaled posi- 
  tion in the 16 other major U.S. unconventional plays is remarkable and 
  unprecedented and should form the foundation of further substantial 
  value creation for Chesapeake’s shareholders for decades to come. 