CURRENT ASSETS:

Cash and cash equivalents

Other current assets

Current assets held for sale

Total Current Assets

PROPERTY AND EQUIPMENT:

Natural gas and oil properties, at cost based on full cost accounting:

Evaluated natural gas and oil properties

Unevaluated natural gas and oil properties

Other property and equipment

Total Property and Equipment, at Cost

Less: accumulated depreciation, depletion and amortization

Property and equipment held for sale, net

Total Property and Equipment, Net

LONG-TERM ASSETS:

Other long-term assets

Long-term assets held for sale

TOTAL ASSETS

CURRENT LIABILITIES:

Other current liabilities

Current liabilities held for sale

Total Current Liabilities

LONG-TERM LIABILITIES:

Long-term debt, net

Deferred income tax liabilities

Other long-term liabilities

Long-term liabilities held for sale

Total Long-Term Liabilities

EQUITY:

Chesapeake stockholders’ equity

Noncontrolling interests

Total Equity

TOTAL LIABILITIES AND EQUITY

REVENUES:

Natural gas, oil and NGL

Marketing, gathering and compression

Oilfield services

Total Revenues

OPERATING EXPENSES:

Natural gas, oil and NGL production

Production taxes

Marketing, gathering and compression

Oilfield services

General and administrative

Natural gas, oil and NGL depreciation, depletion and amortization

Depreciation and amortization of other assets

Impairment of natural gas and oil properties

Losses on sales and impairments of fixed assets and other

Total Operating Expenses

INCOME (LOSS) FROM OPERATIONS

OTHER INCOME (EXPENSE):

Interest expense

Earnings (losses) on investments

Gains (losses) on sale of investments

Other Income

Total Other Income (Expense)

INCOME (LOSS) BEFORE INCOME TAXES

INCOME TAX EXPENSE (BENEFIT)

NET INCOME (LOSS)

Net income attributable to noncontrolling interests

NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE

Preferred stock dividends

NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS

EARNINGS (LOSS) PER COMMON SHARE:

Basic

Diluted

WEIGHTED AVERAGE COMMON EQUIVALENT SHARES OUTSTANDING (in millions):

Basic

Diluted

REVENUES:

Natural gas, oil and NGL

Marketing, gathering and compression

Oilfield services

Total Revenues

OPERATING EXPENSES:

Natural gas, oil and NGL production

Production taxes

Marketing, gathering and compression

Oilfield services

General and administrative

Natural gas, oil and NGL depreciation, depletion and amortization

Depreciation and amortization of other assets

(Gains) losses on sales and impairments of fixed assets

Total Operating Expenses

INCOME (LOSS) FROM OPERATIONS

OTHER INCOME (EXPENSE):

Interest expense

Earnings (losses) on investments

Losses on purchases or exchanges of debt

Other Income

Total Other Income (Expense)

INCOME (LOSS) BEFORE INCOME TAXES

INCOME TAX EXPENSE (BENEFIT)

NET INCOME (LOSS)

Net income attributable to noncontrolling interests

NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE

Preferred stock dividends

NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS

EARNINGS PER COMMON SHARE:

Basic

Diluted

WEIGHTED AVERAGE COMMON EQUIVALENT SHARES OUTSTANDING (in millions):

Basic

Diluted

(a)

Adjustments reflect $2.16 billion of cash consideration. Of the $2.16 billion net cash proceeds received, approximately $1.785 billion was used to repay the principal amount outstanding under the Company’s corporate revolving bank credit facility, the amount outstanding as of September 30, 2012. The actual amount repaid upon receipt of funds was $2.16 billion.

(b)

Elimination of the assets, liabilities and equity sold as part of the CMO Sale as of September 30, 2012.

(c)

Adjustments reflect an estimated charge of $23 million for one-time termination benefits to be paid to employees transferring to ACMP as part of the CMO Sale. Of the $23 million, approximately $14 million relates to the vesting of stock-based compensation awards and approximately $9 million relates to cash benefit payments. The adjustments on the unaudited pro forma condensed consolidated balance sheet include a $9 million liability related to the cash benefit payments, a $9 million deferred tax benefit related to the $23 million of one time termination costs, a $14 million increase to additional paid-in capital related to the vesting of stock-based compensation awards and an offsetting decrease of $14 million to retained earnings.

(d)

Adjustments reflect the gain of $300 million, net of tax of $192 million, on the CMO Sale based on the net book value of the assets, liabilities and equity sold as of September 30, 2012. This gain does not reflect capital expenditures made between the effective date of October 1, 2012, and the closing date on which the purchase price of $2.16 billion was calculated. The purchase price of $2.16 billion assumes estimated capital expenditures for the period between the effective date and closing date to be approximately $193 million. Including these capital expenditures, the gain is expected to be lowered to approximately $182 million, net of tax of $117 million.

(e)

Adjustment reflects gathering expenses that would have been incurred by the Company had CMO been sold on January 1, 2011.

(f)

Concurrent with the closing of the CMO Sale, the Company entered into new gathering agreements effective July 1, 2012, resulting in increased revenue deductions relative to prior contractual arrangements. Gathering and transportation costs are accounted for as deductions to natural gas, oil and NGL revenues.

(g)

Reduction of third-party gathering revenues and expenses as a result of the CMO Sale.

(h)

Reduction of general and administrative expenses as a result of the CMO Sale.

(i)

Reduction of depreciation and amortization expense as a result of the CMO Sale.

(j)

Elimination of other expenses and gains (losses) on the sales and impairments of fixed assets as a result of the CMO Sale. These assets were held by CMO at the time of their disposal and therefore have been included in the pro forma adjustments.

(k)

Reduction of interest expense associated with the midstream revolving bank credit facility that was used exclusively for midstream operations until it was fully repaid and terminated in June 2012.

(l)

Elimination of net earnings on CMO’s investments including its investment in ACMP that was sold in June 2012.

(m)

Elimination of the gain on the sale of CMO’s investment in ACMP that was sold to funds affiliated with Global Infrastructure Partners in June 2012.

(n)

Income tax expense (benefit) based on the Company’s historical statutory tax rate applied to the cumulative effect of changes referenced within the unaudited pro forma condensed consolidated statement of operations.