Chesapeake at Deutsche Bank Conference Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

This company has transformed itself

“I have the unique perspective on the team of having been at Chesapeake now for six years, and so I’ve seen the rapid growth, I’ve seen the issues in 2012 and really prior and I have seen the transformation and participated in that first hand and it is truly remarkable where we sit today and how far we’ve come. The company has changed every aspect of how we do business and it starts with laying out our strategies which we have on this page and so our two key strategies are to have financial discipline and profitable and efficient growth from captured resources and those two things of course go hand-in-hand.”

It’s time to grow without increasing the capital base

“for a number of years positioned itself to take advantage of the advances in horizontal drilling and completion technology to advance and increase its leasehold position in unconventional plays across the United States. Really no hold barred to the amount of capital that it took to build up position. That’s left us in a fantastic asset place but it’s also left us with a significant capital base. And so when we talk about financial discipline, what we are really trying to make sure that we convey to investors is that we are cognizant of the fact that, at this point in our progression as a company, it’s time for us to grow without increasing our capital base.”

Our capital allocation process is fundamentally different

“Our portfolio management and capital allocation process is fundamentally different than it ever has been before. As we were capturing all the acreage that we captured and we needed to hold it all by production we had to chase the lease expiration schedule. That lease expiration schedule does not create the best near-term and long-term shareholder value; it creates an opportunity to go create shareholder value by holding that leasehold.”