Good day, and welcome to the Chesapeake Energy Corporation Q2 2016 Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Brad Sylvester. Please go ahead, sir. Bradley D. Sylvester - Vice President-Investor Relations & Communications: Hey, good morning everyone and thank you for joining us on our call today to discuss Chesapeake's financial and operational results for the 2016 second quarter. Hopefully, you've had a chance to review our press release and the updated investor slides that we posted to our website this morning. During this morning's call, we will be making forward-looking statements, which consist of statements that cannot be confirmed by reference to existing information, including statements regarding our beliefs, goals, expectations, forecasts, projections and future performance and the assumptions underlying such statements. Please note that there are a number of factors that will cause actual results to differ materially from our forward-looking statements, including the factors identified in our earnings release today and in other SEC documents. Please note that except as required by applicable law, we undertake no duty to update any forward-looking statements, and you should not place undue reliance on such statements. We may also refer to some non-GAAP financial measures which help facilitate comparisons across periods and with peers. For any non-GAAP measures we use, a reconciliation to the nearest corresponding GAAP measure may be found on our website and in our earnings release. With me on the call today are Doug Lawler, our Chief Executive Officer; Nick Dell'Osso, our Chief Financial Officer; and Jason Pigott, our Executive Vice President over the Southern Division. Doug will begin the call and then turn the call over to Nick for a review of our financial results, and then we'll turn the teleconference over for Q&A.…

The first question comes from Matt Portillo at TPH. Matthew Merrel Portillo - Tudor, Pickering, Holt & Co. Securities, Inc.: Good morning, guys. Robert Douglas Lawler - President, Chief Executive Officer & Director: Hi, Matt. Matthew Merrel Portillo - Tudor, Pickering, Holt & Co. Securities, Inc.: Just a quick question on the Haynesville. I was curious if you could update us on your thoughts around capital activity in the play heading into 2017 given the soft guidance? And specifically around that, just trying to get a better sense of where the breakeven economics are in the basement today and how that competes for capital versus the Eagle Ford which has historically been another area that's been a call in capital.

Hi. This is Jason. Again, we're going through the budget process as a company right now and we expect to kind of keep three rigs flat but running some sensitivities on that as we speak. So, the Haynesville again with these new completion techniques, they've really transformed the asset for it. It's just as competitive as the Eagle Ford is. One of the challenges that we've got is all the teams are doing very similar things and they're fighting each other every day for every dollar in a good way. But they all have rate of returns that are in 40% to as high as 60% in every single play that we operate. So it's been an exciting time for us as our economics today are better than they were when we had $80 oil prices. And we continue to optimize each of these plays. So the longer laterals, when you look at Chesapeake's history, we went in a least capture mode where we kind of had one well per 640 acres. So for us, we see an advantage and we're one of the few companies that can go to these 10,000 foot wells. And nearly every play that we operate, we're not as overdeveloped. We're not focused on having to go to down spacing and increase density to add well count. We're adding these longer lateral wells across every field that we operate today and we're not forced to just down space in order to add inventory. Matthew Merrel Portillo - Tudor, Pickering, Holt & Co. Securities, Inc.: Great. And then just a follow-up question in regards to the increased forward guidance this year. I was just curious how much of the enhanced completions you're baking in across your asset base, i.e., is that guidance increase already assuming the higher density completions in the Haynesville and potentially some of the changes you're making in other basins? Domenic J. Dell’Osso - Chief Financial Officer & Executive Vice President: Yes, expecting the switch in all of our Haynesville completions to this new design, which is baked into the forecast and it's causing us, driving our increase in guidance. Matthew Merrel Portillo - Tudor, Pickering, Holt & Co. Securities, Inc.: Thank you.

The next question comes from Neal Dingmann at SunTrust.

Good morning, guys. Say, Doug, just maybe a little more color if you could on the asset sales and maybe sides obviously which you've closed, wondering what others you already have PSAs on. And just when you look at regions that you consider noncore, if you could talk about that. Robert Douglas Lawler - President, Chief Executive Officer & Director: Sure, Neal. That's a good question. The extensive portfolio that we have and the significant acreage position gives us a lot of flexibility as we look at our go-forward capital plans, the cash generating capability of the company, and how we might accelerate value from some of these assets. The acreage positions are large, as you know. And as we look at the core positions, what may not be a primary core to Chesapeake could be outstanding core acreage for another company, which drives that interest. And that's what we wanted to highlight for you today in the Haynesville is we have literally hundreds of locations, a significant multi-year inventory of high quality acreage for us to develop. But we also believe that given the quality of the acreage and the opportunity there, that we can accelerate some value. So, we know that there is what we'll call select areas that whether it be inside of core or noncore, that we can accelerate value. And as we look across the portfolio, I'm not prepared to give you any further guidance other than the Haynesville, but there are several other areas that we're looking at. And we feel very good about achieving that divestiture target.

Got it. And just lastly, just looking at that slide 8, that shows that huge portfolio. You mentioned with your rigs today, I noticed there was not a rig yet in the Barnett. Either for you or Jason, just how you see – I think on that slide 8 it shows about 65,000 a day, how you think about the Barnett as far as activity or just maybe production? Robert Douglas Lawler - President, Chief Executive Officer & Director: Well, the Barnett is a great asset. It's been a fantastic asset inside our portfolio. When you look at the potential we have with the longer laterals and with the economics that we're getting out of the other plays, the Barnett's not getting a lot of capital in the near term. So, it's still a very strong, high quality asset. We don't see directing capital there this year or in the near term.

Appreciate it. Thanks, Doug.

And we'll go on to the next question. It comes from David Heikkinen at Heikkinen Energy Advisors.

Good morning, guys. Just a question on the working interest and your expectations of the region for the additional spuds and POPs this year, the 100 wells you'll drill, where will those be and the 75 wells that you're going to put on production?

I can answer that. Most of them will be in Eagle Ford. We were planning to shut that program down earlier in the year. We decided with, well, once we've seen the cost savings they've been able to achieve, again they've taken their well cost down to $4 million for wells that are 9,000 feet long. So that's an amazing transformation for them. Also savings in areas like the Haynesville have allowed us to just keep that program going, so we're reinvesting there. So that's the biggest increase in our drill spuds is going to be in the Eagle Ford. And I say we've gone to, I think we had 25 was our original plan, so we're now up to 100. So a lot of incremental spuds in Eagle Ford. Those translate, really are going to show up more in 2017 because their acceleration on the schedule, and so the TILS don't start to really come in until 2017. So that's when you'll see those. We do have about 15 or so incremental TILS in the Eagle Ford this year. Mid-Con saw a big jump in the TIL count as well. We had some of the curtailment issues that impacted us early in the year. We had shut down our Miss Lime completion program. We've been able to work through the water issues by recompleting into different disposal zones which open up our water capacity later in the year. So we'll be TILing a lot of Miss Lime inventory, which we don't talk a lot about that, but they're making some fantastic wells in the Miss Lime that are very competitive in our portfolio as well.

And along those lines, with the oil volumes flat year over year, just trying to make sure I'm getting with the right benchmark for 2016. Is that your updated millions of barrels guidance, basically just think that 2017 will be flat with the updated guidance for 2016 or is that like an exit rate for fourth quarter? I'm just trying to make sure I get the right benchmark for that soft guide. Robert Douglas Lawler - President, Chief Executive Officer & Director: Yeah, it's total production for the year is anticipated to be flat, Dave.

Awesome. And then you all hit kind of...

Dave, let me just jump in on that. If you think about what that means given the trajectory this year, that means that what's really happening during 2017 in order to be flat year over year is a ramp during the year.

Yeah, you started high in the first quarter then declined through this year and then V up in next year with those TILS particularly.

That's right. So, the momentum there is really strong.

The cost per rig line now in the Eagle Ford and the Haynesville has come down a lot. Can you – you're doing things faster and you talk about lower well cost. Can you just kind of update us on an annual cost per year, what a rig line costs in your four major operating areas, Eagle Ford, Haynesville, Mid-Con and Utica? Domenic J. Dell’Osso - Chief Financial Officer & Executive Vice President: I don't have it on a per rig line basis. Let's do the Eagle Ford. We TIL, we're getting to 2.5 wells per month. They're $4 million gross per well. And then so we're drilling 30-ish wells per year in the Eagle Ford at $4 million a POP on a gross basis. We're averaging about one well per month in the Haynesville even with the longer lateral. So they're on a pace of 12 per month. If we go to these enhanced completion techniques, which we're planning to, cost will be $9 million to $10 million. So you're talking $120 million on a gross basis per rig line there, all in. Then what was the other area?

Mid-Con is the other main area. Domenic J. Dell’Osso - Chief Financial Officer & Executive Vice President: Mid-Con will be hard to do.

Of course. Domenic J. Dell’Osso - Chief Financial Officer & Executive Vice President: We've got a great story in Mid-Con that we're not telling you today because the acreage capture out there is very competitive. We've got 15 different formations that the team has been mapping since the divestiture. We've replaced all of the inventory that we sold to Newfield with prospects in new plays. This is an area where our core lab has given us a great advantage as we're taking cores in some of these new formations and we're able to analyze them faster than anybody else in the play. But because it's such a mixed bag of wells that we're drilling in order to test these 15 different formations, it's hard to put a dollar per rig line together on this. If you get with Brad, we can try to get you some numbers there, but it's a very different portfolio that we'll be drilling in the future in Mid-Con.

Just a completion in the Miss Lime now since you're TIL-ing some wells there, what do they cost? I haven't thought about that in a bit. Domenic J. Dell’Osso - Chief Financial Officer & Executive Vice President: I think they're $400,000.

Yeah it's pretty low. Domenic J. Dell’Osso - Chief Financial Officer & Executive Vice President: Total well costs for a Miss Lime well is about $2.3 million.

Okay. Perfect. Thanks, guys.

And we have time for one more question. It will come from Doug Leggate at Bank of America Merrill Lynch.

Thanks. Good morning everybody. Doug, real interesting commentary around the potential to resolve some of the transportation issues. I realize that some of these things are confidential and so on. But as an order of magnitude, could you provide some idea as to what you might think the end game could be as by way of impact on the cost basis? Robert Douglas Lawler - President, Chief Executive Officer & Director: Let me make sure I understand your question. It was cutting out just a little bit, Doug. To understand the cost on, did you say transformation or transportation?

Sorry, I apologize. I'm not quite sure why my line is choppy this morning. But, so basically, the potential to continue to improve your transportation agreements in terms of the cost obligations, I'm just wondering if you could kind of quantify what you think the order of magnitude could ultimately be on the improvement? Robert Douglas Lawler - President, Chief Executive Officer & Director: Yeah. I guess the way that I would look at that, Doug, is in calling out the progress that we've made over the past couple of years, the message in our call today is, we've got huge opportunity all over this company. And I couldn't be more excited about it. And we're going to share more detail in the coming months about those improvements. So I'm going to hold off on quantifying it for you exactly at this point. But what you can expect is the cost structure improvements, portfolio enhancement, the technologies, improvements on our debt, these things are all just part of the plan that is leading Chesapeake to a much more competitive, much more valuable company. And I just will address your question by saying that we expect to see continued improvements in those transportation costs and continuing to work with Williams and other midstream service providers, and I'm excited about it. So, it's good things are coming.

I appreciate you trying. Well I guess it was worth a try, Doug, I guess. Maybe my follow-up very quickly is no capital really going to the Barnett. There's obviously, I apologize, there might have been someone asked this earlier because there's a couple of calls going on this morning. But the Barnett has been mentioned in dispatches as a potential disposal candidate. Could you comment on your view as to whether that you see that as a core asset at this point? And I'll leave it there. Thanks. Robert Douglas Lawler - President, Chief Executive Officer & Director: The Barnett has been a great asset for Chesapeake. It's a high quality asset as the investment community knows. It has not attracted capital in the near term. And based on the quality of a few of the other assets, we have a hard time directing capital there in the next few years. So that given, we will continue to look at the portfolio, our acreage position of developed and undeveloped properties. And if there's opportunities to accelerate value, enhance the economics, enhance the EBITDA or cash flow of the company, we will absolutely capture that. So that not only applies to the Barnett, it applies to the entire portfolio.

Congratulations in your efforts to date, Doug. Thanks a lot. Robert Douglas Lawler - President, Chief Executive Officer & Director: Thanks a lot. Robert Douglas Lawler - President, Chief Executive Officer & Director: Okay. Operator, thank you for the call. Everyone today, we appreciate your time. If there are additional questions regarding our operating or financial performance, please contact Brad Sylvester, and we look forward to sharing more with you in the coming months. Thank you.