Table of Contents Index to Financial Statements (4) The 2017 proved undeveloped, or PUD, additions of 6,829 Bcfe were comprised of 3,910 Bcfe attributable to adding new undeveloped locations throughout the year through our successful drilling program and 2,919 Bcfe attributable to adding undeveloped locations associated with increased commodity pricing across our portfolio. Performance, production and price revisions consist of revisions to reserves associated with wells having proved reserves in existence as of the beginning of the year. Extensions, discoveries and other additions include new reserves locations added in the current year. Our December 31, 2018 proved reserves included 190 Bcfe of proved undeveloped reserves from 30 locations that have a positive present value on an undiscounted basis in compliance with proved reserve requirements but do not have a positive present value when discounted at 10%. These properties have a negative present value of $24 million when discounted at 10%. We have made a final investment decision and are committed to developing these reserves within five years from the date of initial booking. We expect that the development costs for our proved undeveloped reserves of 6,364 Bcfe as of December 31, 2018 will require us to invest an additional $3.8 billion for those reserves to be brought to production. Our ability to make the necessary investments to generate these cash inflows is subject to factors that may be beyond our control. The current commodity price environment has resulted, and could continue to result, in certain reserves no longer being economic to produce, leading to both lower proved reserves and cash flows. We refer you to the risk factors  “Natural gas, oil and NGL prices greatly affect our business, including our revenues, profits, liquidity, growth, ability to repay our debt and the value of our assets”  and  “Significant capital expenditures are required to replace our reserves and conduct our business”  in Item 1A of Part I of this Annual Report and to  “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Cautionary Statement about Forward-Looking Statements”  in Item 7 of Part II of this Annual Report for a more detailed discussion of these factors and other risks. The reserve replacement ratio measures the ability of an E&P company to add new reserves to replace the reserves that are being depleted by its current production volumes. The reserve replacement ratio, which we discuss below, is an important analytical measure used by investors and peers in the E&P industry to evaluate performance results and long- term prospects. There are limitations as to the usefulness of this measure, as it does not reflect the type of reserves or the cost of adding the reserves or indicate the potential value of the reserve additions.  10 Our Reserve Replacement · As of December 31, 2018, we had 6,364 Bcfe of proved undeveloped reserves, all of which we expect will be developed within five years of the initial disclosure as the starting reference date. During 2018, we invested $491 million in connection with converting 1,096 Bcfe, or 16%, of our proved undeveloped reserves as of December 31, 2017 into proved developed reserves and added 832 Bcfe of proved undeveloped reserve additions in the Appalachian Basin. Proved undeveloped reserves also decreased in 2018 primarily due to the sale of the Fayetteville Shale E&P assets. · As of December 31, 2017, we had 6,855 Bcfe of proved undeveloped reserves. During 2017, we invested $23 million in connection with converting 46 Bcfe, or 60%, of our proved undeveloped reserves as of December 31, 2016 into proved developed reserves and added 6,829 Bcfe of proved undeveloped reserve additions in the Appalachian Basin. The significant increase in our proved undeveloped reserve additions in 2017 was the result of adding new undeveloped locations throughout the year through our successful drilling program, improved operational performance and increased commodity pricing across our portfolio.  · As of December 31, 2016, we had 77 Bcfe of proved undeveloped reserves. During 2016, we invested $103 million in connection with converting 220 Bcfe, or 50%, of our proved undeveloped reserves as of December 31, 2015 into proved developed reserves and added 25 Bcfe of proved undeveloped reserve additions in the Fayetteville Shale. As a result of the commodity price environment in 2016, we had downward price revisions of 374 Bcfe which were slightly offset by a 203 Bcfe increase due to performance revisions.