1 Chesapeake Energy Corporation Website Investor Presentation Materials January 7, 2004 2 ns in a project ncho acquisition, ncho acquisition, t drilling and the g interest (acquired g interest (acquired sets in southeastern which was purchased by which was purchased down to CHK’s price terest and operatio oducer after the Co ions, no auction process, scheduled ions, no auction process, scheduled of these assets because previous ial efficiencies through significant tional developmen tional perform, seller came any with high-quality as ady owned a 37.5% workin C-based Ricks Exploration, Ricks C-based Agreed to purchase a 50% working in area in which CHK alre through the Canaan acquisition in 2002) – scheduled closing: 1/14/04 Complements Concho’s Permian assets failed to Highest bidder Closed in December ‘03 - - - - Recently Announced Acquisitions, I Well-managed private comp County, Texas; $65 million Goliad initiation of an exploration program negotiat one-on-one through Acquired closing: 1/30/04 New Mexico, Oklahoma and South Texas New Mexico, Oklahoma with the majority familiar very CHK is ownership of them by OK Concho in 2002 top 20 Permian Basin pr CHK will rank as a with 75 mmcfe per day of production and 350 bcfe of proved reserves CHK’s ownership will create substant expense savings, addi administrative Permian Basin; $25 million Concho - $420 million Two Asset Acquisitions - $90 million 3 ral gas prices to hedge s because of attractive of attractive s because fe, with cost saving opportunities fe, with cost saving bcfe for $440 mm = $1.38/mcfe index of 12.5 years mber’s strength in natu provide excellent return 75% of reserves are natural gas and 67% are proved developed Reserves-to-production Low operating costs of $0.56 per mc $510 mm total cost Probable/possible reserves (195 bcfe) and 67,000 net acres of unevaluated leasehold acquired for $70 mm Proved reserves acquired: 320 ------CHK took advantage of Dece 100% of the acquisitions’ 2004 and 2005 projected production volumes at $5.68 and $5.37 per mcf, respectively Recent acquisitions should Recent acquisitions valuation metrics and hedging of 2004 and 2005 gas production at high prices Recently Announced Acquisitions, II Summary 4 y current production (45-50 @ $0.09/mcfe and $0.37/mcfe unevaluated leasehold: 88 bcfe s production volumes at NYMEX 3): 41.6 mmcfe (gross) ): 31.3 mmcfe (gross) ): 31.3 mmcfe mber and December $5.20 per of high quality assets Successful Laredo Deal New Transactions Follow The Attractive acquisition Day 1 production (11/1/03 Day 60 production (12/30/0 60 days in first 33% production increase $200 mm total cost, closed on October 31, 2003 closed cost, $200 mm total Probable/possible reserves and and 16,000 net undeveloped acres for $48 mm 108 bcfe reserves: Proved = $1.41/mcfe for $152 mm Low operating and drilling costs Reserves booked well below seller’s estimates 100% natural gas; 30 mmcf da per mmcf per day estimated exit rate in 2004) Concentrated in two fields in Zapata County, Texas ------prices of $5.76 per mcf for Nove mcf for the full-year 2004 Substantial exploration upside potential exists Drilling and operational success already underway CHK hedged 100% of projected ga 100% of projected CHK hedged Laredo: 5 s, of: acquisition, of: acquisition, ion for most companie Operating Areas? rsue the same basin consolidation rsue the same basin consolidation shore Gulf Coast/South Texas) shore Gulf Coast/South Texas) rage its considerable operational operational considerable rage its follow CHK’s model ide investment alternatives if Mid-Continent acquisition returns completion expertise needed Why Build Secondary and exploration but opportunities for CHK but opportunities differentials = low gas short infrastructure, Long horizons deep under-explored with very geology Complex issues or access regulatory legal, assets with no Onshore Ripe for consolidation Deep drilling and tight sands mode out or are in harvest pulled have Majors are de-emphasizing and super-independents Large Small and mid-caps simply do not pu strategy as CHK does, nor do they Fragmented land ownership creates frustrat Fragmented exploitation, extension exploitation, − − − − − − − − − The two new areas (Permian and on (somewhat) are ripePermian (especially) for and South Texas consolidation Secondary areas enable CHK to leve share many characteristics with Mid-Continent and geological skills to prov intruders periodically diminish 6 at least 50 cents more per mcfe 50 cents at least San Juan or Canadian mcfe’s low service and mid-stream costs, operating costs create superior provide many “home field” the Mid-Continent? drilling success rate > 95% Why Stay Focused on ability per unit of production Not all mcfe’s are created equally! in the ground than Rockies, Mid-Continent reserves are worth are worth reserves Mid-Continent largest gas supply basin supply gas largest rd Leads to strong wellhead prices and Leads to strong wellhead resulting in higher profit Gas prices typically only $0.25 below Henry Hub costs = low infrastructure gas and service Extensive 3 Top 3 producers (CHK 14%, BP 8%, APA 5%) produce 27% of gas; 247 others produce next 63%; 5,000+ others produce last 10% Average R/P is 10-12 years; ------Mid-Continent is “short” gas and “long” infrastructure is “short” Mid-Continent High wellhead realizations and low Mid-Continent is large and ownership is fragmented Long-lived, multi-pay gas reserves Very favorable regulatory environment and skills CHK’s scale, knowledge returns on investment advantages 7 regions; this lack of focus can of last two years have unlocked unlocked have years two of last with tremendous upside remaining seismic database cannot be replicated cannot be replicated seismic database tegy are simple, clear and unique ral gas producer, the most active are extremely prolific, more than er of undeveloped leases in er of undeveloped value for CHK on favorable terms Our competitive advantages lead to top-tier returns - CHK’s Machine Mid-Continent The Anadarko and Arkoma Basins 150 tcfe has been produced to date These basins are deep and complex, below 15,000’ advances reprocessing seismic Recent reservoirs of deep potential Land policies in Oklahoma are unique as well, big (640 acre) spacing units and forced pooling captures PUD - - - - We are a business, not just a collection of assets CHK’s Mid-Continent focus and stra We believe we are the largest natu driller and the most active acquir the Mid-Continent Most other companies operate in many lead to mediocre returns is unique: The Mid-Continent CHK’s land inventory and Mid-Continent by any other company 8 of last 14 years exploration, drilling een a great time to do both in the Mid-Continent since ’00, (NYMEX average = $3.60 per mcfe) = $4.23 per (NYMEX average mcfe) = $4.33 per (NYMEX average mcfe) = $5.35 per (NYMEX average mcfe) sometimes best to acquire – quarters and in each pertise in deep gas gas pertise in deep livering top-tier full-cycle returns ely 40 operated rigs at work under-managed natural gas assets in the $0-500 natural gas under-managed e of our 3-D seismic CHK Will Continue Pursuing A Balanced Growth Strategy Sometimes it’s best to drill, during past 24 months it’s b Delivered sequential growth in past 10 10 in past growth Delivered sequential #2 driller in the U.S., approximat ex Deepest driller in U.S. with special 4 of 10 deepest wells in U.S. 92% drilling success rate below 12,500’ the valu demonstrates Focused on under-drilled, $3.5 billion since 1/98 @ $1.17 per mcfe $2.7 billion since 1/00 @ $1.26 per mcfe $1.9 billion since 1/02 @ $1.36 per mcfe $1.5 billion since 1/03 @ $1.36 per mcfe million range ------Focus and balance are the keys to de CHK grows through the drillbit CHK grows through acquisitions 9 “all-in” costs of imported oil, lly high prices that generate ar, supply trendline down lows – friend is our trend the premium over coal and oil) increase. We love volatility – why? Why Stay Focused on Gas? Competitively priced (especially when dirty coal, and risky nuclear are added back) Domestically produced Clean (should command a BTU trendline is up 1-2% per ye Demand 1-2% per year higher In pricing: higher highs, Creates opportunity to hedge unusua unusually high returns Reduces investment in the industry, which dampens supply Helps unlock the option value embedded in long-life reserves − − − − − − − − Best fuel in the U.S. energy mix have been steadily improving Supply/demand fundamentals Volatility is high and likely to 10 roy more demand; volatility in a $26-$32 tion is more resistant to further e more likely headed to a 19-20 er prices to dest ill McKenzie Delta gas ever make it ever make ill McKenzie Delta gas result of a spectacular collision increasingly gets priced away; al trends: growing demand and tcf economy by ’06-’07; we never believed in $4.00-$6.00 with lots of It will be much better to a producer of It will energy than a consumer of in the U.S. during at least the next 5 years Why Will Gas Prices Stay Strong? oil world past the Alberta oil sands projects? sands the Alberta oil past Gas prices will average From today’s 22-23 tcf economy, we’r tcf economy than a 25-26 30 tcf by ’10 consumer price-sensitive The gas LNG to the rescue by ’08-09? But, what happens before then? Arctic gas arrives in ’10-’12? But, w however, this is an ugly and painful process for those affected those for process painful and ugly is an this however, high successively year requires Each the remaining “core” demand by defini demand destruction – – – – – – Today’s strong gas prices are the two formidable structur between declining supply In the short run: In the longer run: 11 % % 5.0 2.3 9.7 0.2 8.9 1.3 -0.3 -3.8 -1.3 -3.1 -3.1 -7.9 -7.2 -1.5 -8.2 -4.5 -8.7 -3.1 12.7 % Change -10.6 -21.7 3Q 03 vs. 2Q % % 7.7 4.3 3.4 2.2 -0.7 -2.6 -5.3 -5.8 -8.9 53.8 45.9 32.6 -5.9 -10.5 -11.2 -12.4 -12.5 -12.9 -16.9 -18.3 -33.7 % Change 3Q 03 vs. 02 (1) 492 536 494 630 710 950 564 900 694 527 716 450 1,375 1,710 1,395 2,374 2,406 3,450 1,780 1,256 23,409 3Q ‘02 , 13 down in LTM ended 9/30/03 year, or 14% of their production! 659 702 631 514 636 707 962 541 875 617 502 652 1,350 1,624 1,311 2,306 2,302 3,145 1,627 1,064 22,727 13 bracketed companies: -2.2 bcf in one of U.S. Gas Production 692 718 711 515 644 705 925 534 848 608 461 595 833 3Q ‘03 1,481 1,769 1,271 2,124 2,137 3,005 1,455 “Haves” and “Have Nots” 22,031 Daily U.S. Natural Gas Production (1) In mmcf per day mmcf In (1)
Totals/Average Company ‘03 2Q Chesapeake Apache XTO Anadarko Newfield Devon EOG Marathon Dominion Oxy Burlington ConocoPhillips ExxonMobil ChevronTexaco Kerr-McGee Williams BP Unocal Royal DutchShell El Paso 1. 2. 3. 4. 5. 6. 7. 8. 9. Top 20 U.S. Gas Producers: 7 up 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 12 (d) % % 8.9 9.7 5.0 2.3 1.3 0.2 -4.5 -7.2 -7.9 -3.1 -3.8 -3.1 -0.3 -1.5 -8.7 -1.3 -8.2 -3.1 12.7 % Change -10.6 -21.7 3Q 03 vs. 2Q % % 3.4 7.7 2.2 4.3 -8.9 -2.6 -5.8 -0.7 -5.3 -5.9 53.8 45.9 32.6 -12.9 -11.2 -10.5 -18.3 -33.7 -12.4 -16.9 -12.5 % Change 3Q 03 vs. 02 (b) o forma for acquisitions. 450 950 900 536 710 694 716 564 494 527 492 630 3,450 2,406 2,374 1,710 1,375 1,780 1,395 1,256 23,409 3Q ‘02 962 875 631 707 617 652 541 514 502 659 702 636 3,145 2,302 2,306 1,624 1,350 1,627 1,311 1,064 ’03 gas production of mmcf/day 692 22,727 4th Among Independents gas production gas production for 2004, pr (c) (d) 795 925 848 833 711 705 608 595 534 515 461 718 644 3,005 2,137 2,124 1,769 1,481 1,455 1,271 3Q ‘03 22,134 Daily U.S. Natural Gas Production 11th Largest U.S. Gas Producer, (c) Actual 3Q ’03 gas production was 692 mmcf/day was 692 production gas ’03 3Q Actual (a) (a) Independents in green Independents in (a) per day mmcf In (b) average (c) Estimated daily (d) Calculated on actual CHK CHK 3Q actual on Calculated (d)
Totals/Average Company ‘03 2Q BP ChevronTexaco ExxonMobil Devon (1) (2) Anadarko Royal Dutch Shell ConocoPhillips Dominion (3) Burlington El Paso Chesapeake PF (4) Apache (5) XTO (6) Marathon EOG (7) Kerr-McGee (8) Unocal (9) Oxy Newfield (10) Williams 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 13 (2) (62%) (38%) (24%) 2 4 6 2 2 1 3 1 1 5 8 4 2 0 0 7 1 2 0 32 83 50 133 Oklahoma Rigs Drilling @ 12/26/03 % % 8.3 5.0 4.2 3.5 3.5 3.2 2.9 2.2 2.1 1.8 1.6 1.6 1.5 1.5 1.4 1.3 1.3 1.3 1.3 14.2 63.7 36.3 100.0 Share of Oklahoma Production (1) 78 65 55 55 49 45 34 32 27 25 25 23 23 22 21 21 20 20 221 129 990 564 Gas 1,554 CHK is Definitely a Production Gross Operated (3) “Have” in the Mid-Continent Chesapeake BP Apache Dominion Marathon Kaiser-Francis (private) Burlington (private) Samson ChevronTexaco XTO EOG Cimarex Devon GHK (private) ConocoPhillips ExxonMobil Newfield Anadarko Questar Kerr-McGee Subtotal (Top 20) All Others Total Grand 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. (1) In 2002 bcf’s (1) In 2002 Smith(2) InternationalSource: survey forma for ’03acquisitions (3) Pro Top 20 Oklahoma Gas Producers Financial Information
14 15 % of Total 46.6 53.4% 100.0% 4.3 2.0 42.1 28.1 209.8 728.3 300.0 363.8 236.7 200.0 149.9 230.0 172.5 () 2,294.3 1,445.8 1,998.2 $ 235.4 $ - $4,292.5 Pro Forma As Adj. (2) ) 4.3 2.0 42.1 28.1 209.8 728.3 300.0 363.8 236.7 200.0 149.9 230.0 172.5 ( 2,058.9 1,186.8 1,739.2 $ 15.6 $ - $3,798.1 Pro (1) Forma % of Total 43.9 56.1% 100.0% ) Capitalization Table As of September 30, 2003 ($ in mm) - 0.0 42.1 12.8 22.8 () ( 222.1 800.0 110.7 300.0 300.0 213.0 149.9 230.0 2,024.3 1,204.5 1,584.4 $ 72.0 $ 38.5 Historical $3,608.7 ngs and tender of 8.5% Senior Notes due 2012 issuance of 20 million shares and $510 million ges, the acquisition of Laredo, and for the Retained Earnings November 2003 notes and preferred stock offeri Total debt Total Total Shareholders’ Equity Total Book Capitalization of acquisitions Cash and Equivalents Facility Revolving Credit Senior Notes due 2004 7.875% Senior Notes due 2008 8.375% Senior Notes due 2011 8.125% Senior Notes due 2012 8.5% Senior Notes due 2012 9.0% Senior Notes due 2013 7.5% Senior Notes due 2015 7.75% Senior Notes due 2016 6.875% Derivatives Interest Rate Notes on Senior Discount Preferred Stock 6.75% Preferred Stock 6.0% Preferred Stock 5.0% Common Equity and (1) Pro forma for October 2003 debt exchan (2) Pro forma for January 2004 common stock 16 $ 5.04 $ 4.88 $ 4.76 $ 28.69 $ 28.68 8% 27% 11% 78% 100% Oil Hedging Out Year Gas Hedging Total 2005 Total 2006 Total 2007 2003 2004 $ 5.97 $ 4.97 $ 4.89 $ 5.08 $ 5.32 NYMEX Positions Open & Closed Average Price of (1) 98% 74% 59% 47% 69% % Hedged In 2001, 2002 and 2003 (through 9/30), CHK’s hedging successful program led the industry with $127 mm of hedging gains CHK’s positions for 2003 through 2007 are “in the hedging money” an additional $100 mm and are detailed below: Total 2004 Q1 ‘04 gas Q2 ’04 gas Q3 ’04 gas Q4 ’04 gas • • (1) as of 12/22/03 and pro forma for pending acquisitions for pending forma pro and 12/22/03 of as (1) CHK’s Successful Hedging Program 17 ) ) ) ) ) ) ) (6) 8 11 36 22 109 189 159 468 225 1.9x 6.5x 3.8x 5.2x ( ( ( ( ( ( ( 11.1x 1,241 1,082 $ 367 $ 1.22 $ 1,556 @$5.50 ) ) ) ) ) ) ) (6) 8 99 36 22 111 189 159 468 212 1.9x 6.3x 3.9x 5.3x ( ( ( ( ( ( ( 11.9x 1,206 1,047 $ 345 $ 1.14 $ 1,411 @$5.00 ) ) ) ) ) ) ) (6) 8 89 36 22 212 189 159 468 198 2.0x 6.2x 4.1x 5.5x ( ( ( ( ( ( ( 12.7x 1,171 1,012 $ 324 $ 1.07 $1,265 h These offer. exchange Notes Senior @$4.50 ) ) ) ) ) ) ) (6) 8 78 36 22 312 189 159 978 468 185 2.0x 6.0x 4.2x 5.6x ( ( ( ( ( ( ( 13.6x 1,137 $ 303 $ 1.00 $1,120 @$4.00 ) ) ) ) ) ) ) (6) 8 68 36 22 413 189 159 943 468 172 2.1x 5.8x 4.3x 5.8x $974 ( ( ( ( ( ( ( 14.6x 1,102 $ 281 $ 0.93 @$3.50 (5) ) FAS 143 (abandonment obligations), or expenses associated wit expenses associated orobligations), FAS 143 (abandonment e x 302 mm shares, plus $2.3 billion in pro forma debt) forma $2.3 plus billion in pro e x 302 mm shares, 95% deferred 95% (2) nnot be estimated at this time estimated be nnot
e at various NYMEX prices; oil $25.00 NYMEX) assets (@ $.07/mcfe) (including pfd. dividends) pfd. (including (1) tion (@ $1.435/mcfe) itions and resulting financings resulting and itions (7) (1) (3) 2004 Targets @ Various Gas Prices (4) items are either immaterial, or ca immaterial, either are items (1) Before effects of FAS 133 (unrealized hedging gain or loss), or gain hedging of FAS 133 (unrealized effects Before (1) (2) MEV (Market Enterprise Value) = $4.1 billion ($13.58/share x 302 mm shares) = $4.1($13.58/share billion Value) Enterprise (Market MEV (2) = $6.4($13.58/shar billion Value) (Enterprise EV (3) @ $13.58/share (4) of $31 million dividends of $159 million preferred plus expense = interest charges Fixed (5) acquis for pending forma Pro (6) (7) Net debt = pro forma debt less if cash, any, (see page 15)
($ in millions; gas pric Net income Depreciation of other rate, (38% Income taxes O/G revenue (unhedged) @ 325 bcfe effect Hedging other and Marketing Production taxes (@ 7.0%) LOE (@ $0.58/mcfe) G&A (@ $0.11/mcfe) Ebitda Interest Operating cash flow deprecia Oil and gas Net income per fully diluted share Net debt/ebitda charges Ebitda/fixed MEV/operating cash flow EV/ebitda PE ratio Summary
18 19 largest th multiple expansion underway expansion underway multiple g E&P’s during past 3 years uction growth vs. industry’s 3% of stock, and: common stock in the offering l common stock dividend l common stock largest independent and 11 th iller and #2 driller overall Chesapeake knows how to deliver value to investors to deliver how knows Chesapeake – Improving steadily, equity – Two co-founders own 14. – Best hedging track record amon record track Best hedging – – annua CHK a $0.14 pays – 10 consecutive quarters of prod Lots of Reasons to Own CHK – returns high provides strategy focused business Uniquely – trades at a discount to NAV CHK – U.S. gas production, 4 In Bought 3.1 mm shares of common stock in 2003 Each intend to purchase $5 mm – Top 3 pure play in U.S. natural gas - - overall, plus #1 deep dr multi-year production decline Gas Focus Size Growth Value Income Balance Sheet Hedging Commitment Performance as a result 20 $1,049.00 $1,049.00 194% 243% 271% 325%
mber 29, 2003 (price of $13.58) To Deliver Value CHK Knows How CHK Out-performance:
ice of $1.33) through Dece $356.28 $356.28 $356.28 #2 among mid and large caps since 2/4/93 #2 among mid and large caps since #1 in mid and large caps since 1/1/99 NBL, NFX, PPP, PXD, VPI, XTO NBL, NFX, (1) Peers = APA, APC, BR, COG, DVN, EOG, FST, KMG, FST, KMG, EOG, COG, DVN, BR, Peers= APA, APC, (1) Growth in a $100 Investment $283.06 $283.06 (1) (1) (1)
February 4, 1993 (CHK IPO pr CHESAPEAKEPEERS DOW JONES $305.85 NASDAQ $283.06 500 $246.79 S&P $1,049.00 CHESAPEAKE PEERS NASDAQ CHESAPEAKE DOW JONES $305.85 500 $246.79 S&P PEERS NASDAQ 21 Equity Issuances issued to partially fund ONEOK ssued to partially fund ONEOK ssued to partially fund issued to fund various Mid- ck issued to fund Laredo acquisition ck issued to fund RAM, Sapient 1/03 Price = $74.50, Gain = 49% 1/03 Price = $91.25, Gain = 82% 1/03 Price = $109.00, Gain = 9% /31/03 Price = $13.58, Gain = 81% /31/03 Price= $13.58 , Gain = 68% Results of Recent CHK value to shareholders and has done so CHK’s knows how to deliver management and El Paso acquisitions and El Paso Issue Price = $8.10, 12 acquisitions and El Paso Issue Price = $50.00, 12/3 Issue Price = $100.00, 12/3 $150 million of 6.75% Preferred Sto 23 million shares of Common Stock 23 million shares of Common Stock i $230 million of 6.0% Preferred Stock $172.5 million of 5.0% Preferred Sto and Apache acquisitions Issue Price = $50.00, 12/3 Continent acquisitions Issue Price = $7.50, 12 – – – – – – – – – – 11/13/01 11/12/03 12/05/02 2/27/03 2/27/03 • • • • • 22 Contact Tom Price, Jr. Sr. Vice President – Investor and Government Relations (405) 879-9257 [email protected] Marcus C. Rowland Executive Vice President and Chief Financial Officer (405) 879-9232 [email protected] Corporate Information www.chkenergy.com Common Stock NYSE: CHK Other Publicly Traded Securities 5.0% Convertible Preferred Stock6.75% Convertible Preferred Stock6.0% Convertible Preferred Stock CUSIP #165167800 7.875% Senior Notes Due 2004 CUSIP #165167503 8.375% Senior Notes Due 2008 CUSIP #165167602 8.125% Senior Notes Due 2011 8.5% Senior Notes Due 2012 CUSIP #165167AM9 9.0% Senior Notes Due 2012 CUSIP #165167AV9 7.5% Senior Notes Due 2013 CUSIP #165167AS6 7.75% Senior Notes Due 2015 CUSIP #165167AN7 CUSIP #165167AX5 CUSIP #165167BB2 CUSIP #165167BA4 Chesapeake Headquarters 6100 N. Western Avenue Oklahoma City, OK 73118 (405) 848-8000 Web site: 23 in their filings with the om including in filings with reserves that a company has Certain Reserve Information The Securities and Exchange Commission has generally Securities and Exchange Commission The and gas companies, oil permitted SEC, to disclose only proved only disclose to SEC, the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of by the company. being actually realized demonstrated by actual production or conclusive and legally producible tests to be economically formation We and operating conditions. economic existing under use the terms “probable” and “possible” reserves, or “upside” other descriptions of “potential” reserve through recoverable volumes of reserves potentially additional drilling or recovery techniques that the SEC’s guidelines may prohibit us fr 24 n 27A of the Securities Act forward-looking statements forward-looking by known or unknown risks Forward Looking Statements Forward-looking Information: and uncertainties. These risks other risk factors are company's 2002 annual report on Form the in described and Securities 10-K/A and subsequent filings with the Exchange Commission. This presentation contains within the meaning of Sectio within 21E of the Securities Exchange Act Section and 1933 of of 1934. Forward-looking statements include estimates future of current expectations or forecasts our give and forward-looking events. Although we believe our affected by be statements are reasonable, they can or inaccurate assumptions 25 we use that may be be may that use we measures" under Securities measures" under Securities Specifically, this presentation this Specifically, presentation reconciles those ow from operating activities projecting various other GAAP ning 2004 projected operating ning 2004 projected d liabilities) and EBITDA under Non-GAAP Financial Information This presentation contains forward-looking information information contains forward-looking presentation This concerning financial measures that considered "non-GAAP financial and Exchange rules. Commission contains information concer fl cash flow (defined as an assets before changes in This various pricing scenarios. measures to projected net income. However, due to the uncertainties associated with line items in the future, including changes to assets and liabilities and the effect of hedge accounting on certain GAAP not be as complete may reconciliation line items, this reconciliations of our historical non-GAAP information.