chesapeake energy: royalty owners brochure

8/12/2019 Chesapeake Energy: Royalty Owners Brochure

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A M I N E R A L O W N E R S G U I D E T O A B E T T E R Q U A L I T Y O F L I F E

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OFB E N E F I T SRoyalties Hit Home Run in Community

Vince Hernandez

Royalties Improve Their Quality of Life

Michael and Wendy Weiss

Investing in Education

Geri and Bennie Medlin

Perfect Timing on Royalty Payments

Gerald Long

Zero Investment, Positive Returns

Shana and Greg Hutson

More Great Journeys Ahead

Frank and Patricia Salazar

Their Home is Paying Them Back

Linda and Mike Bell

Appreciating American RightsCandy and Ben Channell

Sisters Enjoy Royalty Inheritance

Laura Wikstrom and Christine Humberson

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A M I N E R A L O W N E R S G U I D E T O A B E T T E R Q U A L I T Y O F L I F E

www. AskChesapeake.com /B ar ne tt 100 ENERGY WAY FORT WORTH, TEXAS 76102 817 - 502 - 5000

So far in 2011 , Chesapeake Energy Corporation

has paid out $120 million in natural gas royalties

in the Barnett Shale. La st year alone, Chesapeake

distributed $252 million in royalty payments. The

current royalty payout in the Barnett to date is

more than $1.38 billion.


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Royalties Hit Home Run in Community

Joshua Baseball Association Board

President Vince Hernandez saidhis league was so strapped for cash two

years ago that it was a struggle simply

to pay the umpires.

There were times when it was prettyupsetting, said Vince.

We were hoping and praying that more

people would show up so that wed be

able to pay the umpires. We dont have to

worry about that as much with royalties.

Natural gas royalties from Chesapeake

have reversed the nancial situation of

the Joshua Baseball Association, or JBA,

helping enhance the experience for all

300 of its youth players. Royalties have

been used to purchase new uniforms,

fund various stadium improvements and

even create a scholarship program.

Royalties have helped out

tremendously. Weve beneted

from royalties as an association,

so we felt like we needed to

pass it on to the kids.

Vince Hernandez

ROYALTY OWNERS SUMMER 2011 03

Players arent the only individuals

beneting from the JBAs royalty income.

The league has also used its earnings to

support a local hero.

In February, a Joshua police ofcer was

diagnosed with Hodgkins lymphoma, an

aggressive form of cancer that left the

28-year-old U.S. Marine veteran in need

of help. Upon learning about the ofcersneeds, the JBA organized a charity

softball tournament to raise money for

his medical fund.

Hes one of our hometown guys so hes

kind of like family, said Vince. So we

just felt inclined to throw it together. We

didnt even think twice about it; it was

a great way for us to show our support.

Organizers estimate more than $10,000

was raised during the March tournament,

at which various law enforcement teams

met in friendly, but spirited, competition.

Much of that money came from private

donations, including $500 given by

Chesapeake. Tournament fees and a rafe

featuring coveted items such as a helmet

autographed by former Dallas Cowboys

player Jay Novacek also helped.

Additional revenue was raised from a

bountiful concession stand in which the

JBA invested about $500 of its royalties,

said Kim Kelly, the JBAs treasurer.

Before the association began

receiving royalties, a fundraiser

of this magnitude might not

have been feasible, said the

baseball association president.

It would have required more personal

fundraising by everybody incorporated

with JBA and the community, said Vince.

Having royalties absolutely helped

because I dont think we could have

done it just with JBA.

Vince added that he hopes to organize

another charity tournament for the

respected Joshua police ofcer in the

near future. Royalties, he said, would

once again play a signicant role.

The Joshua Baseball Association scored

big wit h its royalty payment s, ut ilizi ng

them to buy uniforms, improve elds and

support those needing assistance in their

community. Pirates baseball coach Vince

Hernandez, president of the association,

with players, from left, Connor Campbell,

Alex Jones and Jacob Tarr.


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Royalties Improve Their Quality of Life Investing in Education

Michael and Wendy Weiss began receiving royalties two years ago, aroundthe time their rst child enrolled in college. With three more children still at home, the

couple expects to have at least one child in college during the next 10 years.

Considering the average life of a natural gas well is 30 years or more, the Weiss family

will likely continue receiving royalty checks until the youngest child has graduated. So

royalties will be helping fund their childrens educations for a long time.

I consider it a blessing that they came at a time when our

kids started going to college. They help us pay our taxes and

for our kids to participate in sports and other activities that

they otherwise might not be able to take part in. Wendy Weiss

When you put them aside, said Wendy about the royalties, they add up and improve

the quality of life for our family.

Geri and Bennie Medlin would like to help their daughter meet some of

her college expenses. With royalties, they

have extra nancial freedom to do so.

The royalties will be used mainly for her

education because she will be in school

for six years at Florida A&M University

studying pharmacy, said Geri.

A clerk at Atherton Elementary in the

Arlington Independent School District and

mother of three children, Geri understands

the importance of education.

Shes grateful royalties can help.

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Gerald Long has beenretired for 18 years and says his

royalty payments offer

supplemental income that eases

the strain on his IRA.

Ive said all along after we

signed up, said Gerald, that if I just got enough to pay a water

bill, it would help out.

Now that hes collecting checks,

Gerald said that expectation is

being met, as he uses his royalty

earnings to pay more bills and

other basic expenses. He said

royalties couldnt have started

coming at a better time.

Its just a boost to my income.


Appreciative pare nts: The Weiss family, with daughte rs, from left , Rachel, Candace, Aubrey and Erin.


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Shana and Greg Hutson ndthat royalty ownership makes good

business sense.

As Executive Director of the Kennedale

Chamber of Commerce, Greg said he

understands the value of royalty income

during a challenging economy, as well

as the impact the Barnett Shale has had

on the North Texas region.

On a personal level, he considers

royalties more valuable than other

investments he has made because the

return is consistent, risk free and didnt

require a nancial commitment.

I see it as a return that didnt really cost

me anything, said Greg.

Ive never had royalties before, he said.

And Ive got to say, I like it.

Greg and Shana arent the only members

of the household elated about royalties.

Their two sons have been lobbying for

the royalties to be spent on them, too.

My older son wants a new laptop, and

were looking into using royalties to buy

one, said Greg. My other son, a seventh

grader, is already talking about how he

wants us to use the royalties on him.

Zero Investment , Posi t ive Returns More Great Journeys Ahead

Frank and Patricia Salazar have many passions, from traveling aroundthe world to watching their beloved Dallas Cowboys play right here at home.

Royalty income helps the couple nance these shared adventures.

Royalties allow us to live a little better. Patricia Salazar

The Arlington couple use their royalties to purchase everything from cameras, art

supplies, sports tickets and other items they otherwise might not be so quick to

obtain without the extra income.

Mostly, their checks have been used to subsidize trips to China, France and

Scandinavia over the years.

The couple looks forward to discovering what opportunities future royalties will

bring. It is fun to look forward to the checks coming in every month, said Patricia.

Its like the frosting on our cake.


The Hutsons risk-free financial returns from royalties also benefit sons Josh and Caleb.


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100 ENER GY WAY FORT WORTH, TE XAS 76102 817 - 502 - 500 0

Meet more royalty owners by visiting www. AskChesapeake .com/Barnett/RoyaltyOwners.

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chesapeake energy: royalty owners brochure

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