Segment Information (Notes)

12 Months Ended

Dec. 31, 2012

Text Block [Abstract]

Segment Information

Major Customers and Segment Information

Sales to Plains Marketing, L.P. constituted 11% of our total natural gas, oil and NGL revenues (before the effects of hedging) for the year ended December 31, 2012. There were no sales to individual customers constituting 10% or more of total revenues (before the effects of hedging) for the years ended December 31, 2011 and 2010.

In accordance with accounting guidance for disclosures about segments of an enterprise and related information, we have three reportable operating segments. Our exploration and production operating segment, natural gas, oil and NGL marketing, gathering and compression operating segment and oilfield services operating segment are managed separately because of the nature of their products and services. The exploration and production operating segment is responsible for finding and producing natural gas, oil and NGL. The marketing, gathering and compression operating segment is responsible for marketing, gathering and compression of natural gas, oil and NGL primarily from Chesapeake-operated wells. The oilfield services operating segment is responsible for contract drilling, oilfield trucking, oilfield rentals, hydraulic fracturing and other oilfield services operations for both Chesapeake-operated wells and wells operated by third parties.

COO, a wholly owned subsidiary of COS, is a diversified oilfield services company that we formed in October 2011 to own and operate our oilfield services business. COO provides a wide range of well site services, primarily to Chesapeake and its working interest partners, including contract drilling, hydraulic fracturing, oilfield rentals, transportation and manufacturing of natural gas compressor packages and related production equipment. In connection with the reorganization of our oilfield services subsidiaries and operations, those subsidiaries were released from the guarantees and other credit support obligations that existed for the benefit of Chesapeake and its other subsidiaries, including Chesapeake’s senior notes and contingent convertible senior notes, its corporate revolving bank credit facility and its multi-counterparty hedging facility. In addition, COO and its subsidiaries entered into agreements with Chesapeake pursuant to which they sublease rigs, provide certain oilfield services and obtain certain administrative services.

Management evaluates the performance of our segments based upon income (loss) before income taxes. Revenues from the sale of natural gas, oil and NGL related to Chesapeake’s ownership interests by the marketing, gathering and compression operating segment are reflected as exploration and production revenues. Such amounts totaled $5.5 billion, $5.2 billion and $4.2 billion for the years ended December 31, 2012, 2011 and 2010, respectively. The following table presents selected financial information for Chesapeake’s operating segments.

	Exploration and Production			Marketing, Gathering and Compression			Oilfield Services			Other Operations			Intercompany Eliminations			Consolidated  Total
	($ in millions)
For the Year Ended December 31, 2012:
Revenues	$	6,278		$	10,895		$	1,917		$	21		$	(6,795	)	$	12,316
Intersegment revenues	—			(5,464		)	(1,315		)	(16		)	6,795			—
Total revenues	$	6,278		$	5,431		$	602		$	5		$	—		$	12,316
Unrealized (gain) loss on natural gas, oil and NGL derivatives	(561		)	—			—			—			—			(561		)
Depreciation, depletion and amortization	2,624			54			232			46			(145		)	2,811
Impairment of natural gas and oil properties	3,315			—			—			—			—			3,315
(Gains) losses on sales of fixed assets	14			(298		)	10			7			—			(267		)
Impairments of fixed assets and other	28			6			60			246			—			340
Interest expense	(47		)	(20		)	(76		)	(364		)	430			(77		)
Earnings (losses) on investments	—			49			—			(152		)	—			(103		)
Gains (losses) on sales of investments	(2		)	1,094			—			—			—			1,092
Losses on purchases or exchanges of debt	(200		)	—			—			—			—			(200		)
Income (Loss) Before Income Taxes	$	(1,798	)	$	1,665		$	112		$	(478	)	$	(475	)	$	(974	)
Total Assets	$	37,004		$	2,291		$	2,115		$	2,529		$	(2,328	)	$	41,611
Capital Expenditures	$	12,044		$	852		$	658		$	554		$	—		$	14,108

	Exploration and Production			Marketing, Gathering and Compression			Oilfield Services			Other Operations			Intercompany Eliminations			Consolidated  Total
	($ in millions)
For the Year Ended December 31, 2011:
Revenues	$	6,024		$	10,336		$	1,258		$	—		$	(5,983	)	$	11,635
Intersegment revenues	—			(5,246		)	(737		)	—			5,983			—
Total revenues	$	6,024		$	5,090		$	521		$	—		$	—		$	11,635
Unrealized (gains) losses on natural gas, oil and NGL derivatives	789			—			—			—			—			789
Depreciation, depletion and amortization	1,759			55			172			37			(100		)	1,923
(Gains) losses on sales of fixed assets	3			(441		)	1			—			—			(437		)
Impairments of fixed assets and other	—			43			3			—			—			46
Interest expense	(42		)	(15		)	(48		)	(195		)	256			(44		)
Earnings on investments	—			95			—			61			—			156
Losses on purchases or exchanges of debt	(176		)	—			—			—			—			(176		)
Other income	260			1			5			35			(278		)	23
Income (Loss) Before Income Taxes	$	2,561		$	745		$	72		$	(168	)	$	(330	)	$	2,880
Total Assets	$	35,403		$	4,047		$	1,571		$	2,718		$	(1,904	)	$	41,835
Capital Expenditures	$	12,201		$	1,219		$	657		$	484		$	—		$	14,561

	Exploration and Production			Marketing, Gathering and Compression			Oilfield Services			Other Operations			Intercompany Eliminations			Consolidated  Total
	($ in millions)
For the Year Ended December 31, 2010:
Revenues	$	5,647		$	7,655		$	757		$	—		$	(4,693	)	$	9,366
Intersegment revenues	—			(4,176		)	(517		)	—			4,693			—
Total revenues	$	5,647		$	3,479		$	240		$	—		$	—		$	9,366
Unrealized (gains) losses on natural gas, oil and NGL derivatives	658			—			—			—			—			658
Depreciation, depletion and amortization	1,518			43			94			28			(69		)	1,614
(Gains) losses on sales of fixed assets	(1		)	(139		)	(1		)	4			—			(137		)
Impairments of fixed assets and other	(1		)	20			—			—			2			21
Interest expense	(15		)	(17		)	(25		)	(90		)	128			(19		)
Earnings on investments	—			193			—			34			—			227
Losses on purchases or exchanges of debt	(129		)	—			—			—			—			(129		)
Impairment of investments	—			—			—			(16		)	—			(16		)
Other income	134			2			—			8			(128		)	16
Income (Loss) Before Income Taxes	$	2,663		$	584		$	10		$	(102	)	$	(271	)	$	2,884
Total Assets	$	31,840		$	3,436		$	875		$	2,044		$	(1,016	)	$	37,179
Capital Expenditures	$	12,932		$	624		$	313		$	163		$	—		$	14,032