Source: Chesapeake Energy Corporation Presentation As you can see in the graph above, Chesapeake Energy's (NYSE:CHK) Marcellus operations have undergone some massive improvements since 2011. The Marcellus shale play is primarily centered in Pennsylvania and predominately produces dry natural gas, but there are some liquids-rich parts of the play that the industry has been testing out as well. Longer laterals [the horizontal reach of horizontal wells], better well/completion designs, and more frac stages have resulted in Chesapeake being able to bring wells online that are way more productive. These wells have higher EUR [estimated ultimate recovery] rates, which means they pump out more oil, NGLs [natural gas liquids], and natural gas over their lifetime. Faster drilling times, lower third-party costs, longer laterals [it has been shown that the cost per lateral foot goes down with longer laterals while the overall cost goes up, but that is compensated by the well being far more productive], and pad drilling have helped reduce the cost of bringing these wells online, further enhancing Chesapeake's drilling economics. More gas for less? I'll take it. Going forward, there still are plenty of things to like. Chesapeake Energy is testing out extended laterals [generally 7,500+ feet] and 50 frac stages per well, both of which should result in the energy company being able to bring wells online with much higher EUR rates than its current 6,000-foot lateral, 24 frac stage design for standard Marcellus wells [based on the success Chesapeake and other shale operators have had with XRL wells]. As more information becomes available regarding Chesapeake's XRL well strategy, expect to see additional increases in its rate of return, EUR, and possibly even its production guidance. Investors should keep in mind that natural gas produced in the Marcellus/Utica region fetches a steep discount relative to Henry Hub pricing, the benchmark for American natural gas prices [at least for now, there has been some chatter that eventually Henry Hub might become irrelevant]. That means that even as Henry Hub sits at $2.74 per mmBtu [million British thermal units], Chesapeake is realizing prices that are $0.80 - $1.00 mmBtu below that range before factoring in hedges. In the event natural gas moves higher and/or the differential shrinks, Chesapeake's ROR would shoot up as you can see in the graph above. We will have to see, but with LNG exports starting up soon and a sharp decrease in oil & gas drilling activity nationwide, there is a chance Henry Hub might be able to keep its head above $3 mmBtu next year and beyond. What do you think of Chesapeake Energy as an investment? I personally own shares of this company, as I think the proverbial falling knife is close to hitting the ground and once all the negative sentiment fades, the market will begin to realize the true value of Chesapeake Energy's acreage operations and drilling improvements. Readers who want to read some of Chesapeake Energy's recent highlights should check out this article here. As always, if you have any thoughts or questions you would like to put out there feel free to leave them in the comment section below, and don't forget to press "+Join Group" to get all the latest posts on the exciting oil & gas industry! Disclosure: Callum Turcan, the author, owns shares of Chesapeake Energy Corporation. Always do your own due diligence before investing.