Over the past few years, in addition to gathering the industry’s best  assets, Chesapeake has also built the industry’s finest collection of global  energy partners and energy stock investors. We have now entered into  transactions with PXP, BP, Statoil, Total, CNOOC and BHP Billiton. Collec- tively, we have sold these companies certain assets for total consider- ation of $20.5 billion in the form of cash and drilling and completion carries for which our net cost was only $6.1 billion resulting in overall  value creation of $14.4 billion. While these transactions have been very rewarding to our buyers, they have been truly outstanding for Chesapeake,  providing us an attractive source of capital, a reduction of risk, a quick recovery of our leasehold investment in new plays and a much greater ability to capture a large resource base with decades of highly profitable drilling opportunities. In addition, we are the only U.S. E&P company that has attracted  to its stock ownership roster some of the world’s leading government- sponsored investors: Temasek Holdings (Singapore), China Investment  Corporation, Korea Investment Corporation and Abu Dhabi Investment  Authority. Along with our largest shareholder, Memphis, Tennessee- based Southeastern Asset Management (12%), these shareholders are  some of the world’s largest and most astute investors, and who also  2010 ANNUAL REPORT | 5 happen to manage some of the world’s largest pools of capital and have  a very long-term investment horizon. Their support is an important  validation of our strategy.  Despite this all-star lineup of global partners and investors, some other  investors have not yet fully recognized the benefits of our industry  leadership in acquiring unconventional natural gas and liquids assets.  Whether it was our leveraged balance sheet during recent tough reces- sionary times, our heavy focus on natural gas during a time of persistent  market pessimism about natural gas prices or our large capital invest-  ments in undeveloped liquids-rich leasehold undertaken to enable  Chesapeake to remain an industry leader in the years ahead, it is clear  that we were less popular in the stock market in 2010 than we were in  2009, when our stock price increased by 60%.  We anticipated that some market unpopularity in 2010 would  likely be the price we would pay as we positioned Chesapeake to be  the leader not only in unconventional U.S. natural gas, but also in  unconventional U.S. liquids. However, now that we have largely com-  pleted the investments needed to accomplish this transition to a port-  folio balanced with liquids, the rebound in our stock price could be sharp  as investors begin to focus more clearly on Chesapeake’s three-way  transition from an asset gatherer to an asset harvester, from less natural  gas exposure to more liquids exposure and from a leveraged balance  sheet to one worthy of an investment grade rating.  Accordingly, in early January 2011, we announced our “25/25 Plan,”  a two-year plan designed to reduce our long-term debt by 25% while  still growing the company’s production by 25%. We designed this plan  to articulate very clearly the benefits of becoming an asset harvester  Through a wide variety of transactions, including several led by Chesapeake, the global energy industry made it clear  that the assets owned by Chesapeake and  some of its peers are the most attractive  in the world. << Aubrey K. McClendon, Co-Founder, Chairman and Chief Executive Officer Strong Partners  Short-Term Pain for Long-Term Gain