KKR and Chesapeake Energy Corporation Form Partnership to Invest in Mineral Interests and Overriding Royalty Interests

Kohlberg Kravis Roberts & Co L.P. KKR and Chesapeake Energy Corporation CHK today announced the formation of a partnership to invest in mineral interests and overriding royalty interests in key oil and gas basins in the United States. “Chesapeake has been the world's leading discoverer and developer of oil and gas shale plays, which are revolutionizing energy exploration worldwide. We hope that today's partnership is just the beginning; we have long admired Aubrey and the Chesapeake team and we look forward to broadening our relationship over the years ahead,” said Marc Lipschultz, Head of KKR's Global Energy & Infrastructure business. Under the terms of the arrangement, KKR and Chesapeake will make an initial combined $250 million commitment to the partnership. Chesapeake will contribute 10% of the total commitment and will receive a promoted ownership in the partnership. KKR and Chesapeake will jointly oversee the partnership while Chesapeake will source, acquire and manage the royalty investment opportunities.