Chesapeake Energy Corporation and Vitol sign long-term LNG supply heads of agreement

KLAHOMA CITY, October 31, 2023 – Chesapeake Energy Corporation (NASDAQ: CHK) and Vitol Inc. (“Vitol”) today announced the entrance into a Heads of Agreement (“HOA”) with Chesapeake Energy Marketing L.L.C. (“Chesapeake”) a subsidiary of Chesapeake Energy Corporation.

Under the HOA, Chesapeake will supply up to 1 million tonnes of LNG per annum to Vitol with the purchase price indexed to Japan Korea Marker (“JKM”) for a period of 15 years. Following the execution of the HOA, Chesapeake and Vitol will jointly select the most optimal liquefaction facility in the United States to liquify the gas produced by Chesapeake for delivery to Vitol. The HOA has a targeted start date in 2028.

Nick Dell’Osso, Chesapeake President and Chief Executive Officer, said “We are pleased to expand our relationship with Vitol to deliver independently certified reliable, affordable, lower carbon energy to global markets in need. Today’s announcement marks another important step on our path to ‘Be LNG Ready’, and is further recognition of the premium rock, returns, and runway of our advantaged portfolio and the strength of our financial position. We look forward to entering into additional agreements as export capacity continues to come online.”

Ben Marshall, Head of Vitol Americas, said: “We are excited to build upon our existing relationship with Chesapeake. The global energy landscape has changed significantly in the last two years, which has highlighted the importance of US natural gas production and liquefaction in satisfying the world’s energy needs. Global LNG demand is experiencing tremendous growth and Vitol continues to strengthen its position to safely and reliably deliver cost effective, flexible solutions to our customers around the world.”