Major Customers and Concentration of Credit Risk

3 Months Ended

Mar. 31, 2014

Major Customers and Concentration of Credit Risk

6.	Major Customers and Concentration of Credit Risk

Chesapeake Energy Marketing, Inc. (“CEMI”), a wholly owned subsidiary of Chesapeake, accounted for $229.5 million and $202.5 million of the Partnership’s revenues for the three-month periods ended March 31, 2014 and 2013, respectively.

Financial instruments that potentially subject the Partnership to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. On March 31, 2014 and December 31, 2013, cash and cash equivalents were invested in a non-interest bearing account and money market funds with investment grade ratings. On March 31, 2014 and December 31, 2013, Chesapeake accounted for $138.1 million and $176.5 million of the Partnership’s accounts receivable balance.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

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