Acquisitions and Divestitures (Tables)

9 Months Ended

Sep. 30, 2012

Drilling And Completion Costs Associated To Joint Ventures

For accounting purposes, initial cash proceeds from these joint venture transactions were reflected as a reduction of natural gas and oil properties with no gain or loss recognized. The transactions are detailed below.



Primary Play	Joint Venture Partner^(a)	Joint Venture Date	Interest Sold	Cash Proceeds Received at Closing		Total Drilling Carries			Total Cash and Drilling Carry Proceeds		Drilling Carries Remaining^(b)
						($ in millions)
Utica	TOT	December 2011	25.0%	$	610	$	1,422		$	2,032	$	1,249
Niobrara	CNOOC	February 2011	33.3%	570		697			1,267		495
Eagle Ford	CNOOC	November 2010	33.3%	1,120		1,080			2,200		—
Barnett	TOT	January 2010	25.0%	800		1,404		^(c)	2,204		—
Marcellus	STO	November 2008	32.5%	1,250		2,125			3,375		—
Fayetteville	BP	September 2008	25.0%	1,100		800			1,900		—
Haynesville & Bossier	PXP	July 2008	20.0%	1,650		1,508		^(d)	3,158		—
				$	7,100	$	9,036		$	16,136	$	1,744

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(a)	Joint venture partners include Total S.A. (TOT), CNOOC Limited (CNOOC), Statoil (STO), BP America (BP) and Plains Exploration & Production Company (PXP).

(b)

As of September 30, 2012. The Utica drilling carries cover 60% of our drilling and completion costs for Utica wells drilled and must be used by December 2018. The Niobrara drilling carries cover 67% of our drilling and completion costs for Niobrara wells drilled and must be used by December 2014. We expect to fully utilize these drilling carry commitments prior to expiration. See Note 4 for further discussion of the Utica drilling carries.

(c)

In conjunction with an agreement requiring us to maintain our operated rig count at no less than 12 rigs in the Barnett Shale through December 31, 2012, TOT accelerated the payment of its remaining joint venture drilling carry in exchange for an approximate 9% reduction in the total amount of drilling carry obligation owed to us at that time. As a result, in October 2011, we received $471 million in cash from TOT, which included $46 million of drilling carry obligation billed and $425 million for the remaining drilling carry obligation. In January 2012, Chesapeake and TOT agreed to reduce the minimum rig count from 12 to six rigs. In May 2012, Chesapeake and TOT agreed to further reduce the minimum rig count from six to two rigs.


(d)	In September 2009, PXP accelerated the payment of its remaining drilling carry in exchange for an approximate 12% reduction to the remaining drilling carry obligation owed to us at that time.

Schedule Of Production Payments

Our VPPs consist of the following:



Date of VPP	Division	Proceeds		Proved Reserves (at time of sale)	$ / mcfe		Original Term
		($ in millions)		(bcfe)			(years)
March 2012	Anadarko Basin Granite Wash	$	744	160	$	4.68	10
May 2011	Mid-Continent	853		177	$	4.82	10
September 2010	Barnett Shale	1,150		390	$	2.93	5
February 2010	East Texas and Texas Gulf Coast	180		46	$	3.95	10
August 2009	South Texas	370		68	$	5.46	8
December 2008	Anadarko and Arkoma Basins	412		98	$	4.19	8
August 2008	Anadarko Basin	600		93	$	6.38	11
May 2008	Texas, Oklahoma and Kansas	622		94	$	6.53	11
December 2007	Kentucky and West Virginia	1,100		208	$	5.29	15
		$	6,031	1,334	$	4.52