XML 159 R49.htm IDEA: XBRL DOCUMENT v2.4.0.6
Condensed Consolidating Financial Information (Tables)
 12 Months Ended
Dec. 31, 2012
Text Block [Abstract]  
Condensed Consolidating Balance Sheet
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 2012
($ in millions) 
 
 
Parent  
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
CURRENT ASSETS:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
—

 
$
228

 
$
59

 
$
—

 
$
287

Restricted cash
 
—

 
—

 
111

 
—

 
111

Other
 
1

 
2,369

 
513

 
(337
)
 
2,546

Current assets held for sale
 
—

 
—

 
4

 
—

 
4

Total Current Assets
 
1

 
2,597

 
687

 
(337
)
 
2,948

PROPERTY AND EQUIPMENT:
 
 
 
 
 
 
 
 
 
 
Natural gas and oil properties, at cost based on full cost accounting, net
 
—

 
29,063

 
3,077

 
(222
)
 
31,918

Other property and equipment, net
 
—

 
3,066

 
1,549

 
—

 
4,615

Property and equipment held for sale, net
 
—

 
255

 
379

 
—

 
634

Total Property and Equipment, Net
 
—

 
32,384

 
5,005

 
(222
)
 
37,167

LONG-TERM ASSETS:
 
 
 
 
 
 
 
 
 
 
Other assets
 
217

 
1,396

 
261

 
(378
)
 
1,496

Long-term assets held for sale
 
—

 
—

 
—

 
—

 
—

Investments in subsidiaries and intercompany advances
 
2,254

 
(185
)
 
—

 
(2,069
)
 
—

TOTAL ASSETS
 
$
2,472

 
$
36,192

 
$
5,953

 
$
(3,006
)
 
$
41,611

CURRENT LIABILITIES:
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
$
789

 
$
5,368

 
$
426

 
$
(338
)
 
$
6,245

Current liabilities held for sale
 
—

 
—

 
21

 
—

 
21

Intercompany payable to (receivable from) parent
 
(25,571
)
 
24,372

 
1,330

 
(131
)
 
—

Total Current Liabilities
 
(24,782
)
 
29,740

 
1,777

 
(469
)
 
6,266

LONG-TERM LIABILITIES:
 
 
 
 
 
 
 
 
 
 
Long-term debt, net
 
11,089

 
—

 
1,068

 
—

 
12,157

Deferred income tax liabilities
 
361

 
2,415

 
127

 
(96
)
 
2,807

Other liabilities
 
235

 
1,783

 
839

 
(372
)
 
2,485

Total Long-Term Liabilities
 
11,685

 
4,198

 
2,034

 
(468
)
 
17,449

EQUITY:
 
 
 
 
 
 
 
 
 
 
Chesapeake stockholders’ equity
 
15,569

 
2,254

 
2,142

 
(4,396
)
 
15,569

Noncontrolling interests
 
—

 
—

 
—

 
2,327

 
2,327

Total Equity
 
15,569

 
2,254

 
2,142

 
(2,069
)
 
17,896

TOTAL LIABILITIES AND EQUITY
 
$
2,472

 
$
36,192

 
$
5,953

 
$
(3,006
)
 
$
41,611

 
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 2011
($ in millions) 
 
 
  Parent(a)  
 
Guarantor
Subsidiaries(a)
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
CURRENT ASSETS:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
—

 
$
2

 
$
349

 
$
—

 
$
351

Restricted cash
 
—

 
—

 
44

 
—

 
44

Other
 
1

 
2,647

 
344

 
(210
)
 
2,782

Total Current Assets
 
1

 
2,649

 
737

 
(210
)
 
3,177

PROPERTY AND EQUIPMENT:
 
 
 
 
 
 
 
 
 
 
Natural gas and oil properties, at cost, based on full cost accounting, net
 
—

 
29,284

 
2,017

 
(101
)
 
31,200

Other property and equipment, net
 
—

 
2,828

 
2,732

 
—

 
5,560

Total Property and Equipment, Net
 
—

 
32,112

 
4,749

 
(101
)
 
36,760

LONG-TERM ASSETS:
 
 
 
 
 
 
 
 
 
 
Other assets
 
162

 
865

 
1,248

 
(377
)
 
1,898

Investments in subsidiaries and intercompany advances
 
3,553

 
1,764

 
—

 
(5,317
)
 
—

TOTAL ASSETS
 
$
3,716

 
$
37,390

 
$
6,734

 
$
(6,005
)
 
$
41,835

CURRENT LIABILITIES:
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
$
288

 
$
6,431

 
$
497

 
$
(134
)
 
$
7,082

Intercompany payable to (receivable from) parent
 
(21,850
)
 
20,633

 
1,356

 
(139
)
 
—

Total Current Liabilities
 
(21,562
)
 
27,064

 
1,853

 
(273
)
 
7,082

LONG-TERM LIABILITIES:
 
 
 
 
 
 
 
 
 
 
Long-term debt, net
 
8,226

 
1,720

 
680

 
—

 
10,626

Deferred income tax liabilities
 
390

 
2,767

 
365

 
(38
)
 
3,484

Other liabilities
 
38

 
2,286

 
735

 
(377
)
 
2,682

Total Long-Term Liabilities
 
8,654

 
6,773

 
1,780

 
(415
)
 
16,792

EQUITY:
 
 
 
 
 
 
 
 
 
 
Chesapeake stockholders’ equity
 
16,624

 
3,553

 
3,101

 
(6,654
)
 
16,624

Noncontrolling interests
 
—

 
—

 
—

 
1,337

 
1,337

Total Equity
 
16,624

 
3,553

 
3,101

 
(5,317
)
 
17,961

TOTAL LIABILITIES AND EQUITY
 
$
3,716

 
$
37,390

 
$
6,734

 
$
(6,005
)
 
$
41,835

___________________________________________
(a)
We have revised the amounts presented as long-term debt in the Guarantor Subsidiaries and Parent columns to properly reflect the long-term debt issued by the Parent of $8.2 billion, which was incorrectly presented as long-term debt attributable to the Guarantor Subsidiaries as of December 31, 2011. The impact of this error was not material to our December 31, 2011 financial statements.
 
Condensed Consolidating Statement Of Operations
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
AS OF DECEMBER 31, 2012
($ in millions)
 
 
Parent  
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
REVENUES
 
 
 
 
 
 
 
 
 
 
Natural gas, oil and NGL
 
$
—

 
$
5,858

 
$
348

 
$
72

 
$
6,278

Marketing, gathering and compression
 
—

 
5,371

 
211

 
(151
)
 
5,431

Oilfield services
 
—

 
—

 
1,940

 
(1,333
)
 
607

Total Revenues
 
—

 
11,229

 
2,499

 
(1,412
)
 
12,316

OPERATING EXPENSES
 
 
 
 
 
 
 
 
 
 
Natural gas, oil and NGL production
 
—

 
1,280

 
24

 
—

 
1,304

Production taxes
 
—

 
182

 
6

 
—

 
188

Marketing, gathering and compression
 
—

 
5,285

 
114

 
(87
)
 
5,312

Oilfield services
 
—

 
3

 
1,598

 
(1,136
)
 
465

General and administrative
 
—

 
419

 
122

 
(6
)
 
535

Natural gas, oil and NGL depreciation, depletion and amortization
 
—

 
2,361

 
146

 
—

 
2,507

Depreciation and amortization of other assets
 
—

 
176

 
272

 
(144
)
 
304

Impairment of natural gas and oil properties
 
—

 
3,174

 
141

 
—

 
3,315

Net (gains) losses on sales of fixed assets
 
—

 
(269
)
 
2

 
—

 
(267
)
Impairments of fixed assets and other
 
—

 
275

 
65

 
—

 
340

Employee retirement and other termination benefits
 
—

 
5

 
2

 
—

 
7

Total Operating Expenses
 
—

 
12,891

 
2,492

 
(1,373
)
 
14,010

INCOME (LOSS) FROM OPERATIONS
 
—

 
(1,662
)
 
7

 
(39
)
 
(1,694
)
OTHER INCOME (EXPENSE)
 
 
 
 
 
 
 
 
 
 
Interest expense
 
(858
)
 
(50
)
 
(84
)
 
915

 
(77
)
Earnings (losses) on investments
 
—

 
(167
)
 
55

 
9

 
(103
)
Gains on sales of investments
 
—

 
1,030

 
62

 
—

 
1,092

Losses on purchases or exchanges of debt
 
(200
)
 
—

 
—

 
—

 
(200
)
Other income (expense)
 
891

 
(116
)
 
15

 
(782
)
 
8

Equity in net earnings of subsidiary
 
(667
)
 
(211
)
 
—

 
878

 
—

Total Other Income (Expense)
 
(834
)
 
486

 
48

 
1,020

 
720

INCOME (LOSS) BEFORE INCOME TAXES
 
(834
)
 
(1,176
)
 
55

 
981

 
(974
)
INCOME TAX EXPENSE (BENEFIT)
 
(65
)
 
(376
)
 
21

 
40

 
(380
)
NET INCOME (LOSS)
 
(769
)
 
(800
)
 
34

 
941

 
(594
)
Net income attributable to noncontrolling interests
 
—

 
—

 
—

 
(175
)
 
(175
)
NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE
 
(769
)
 
(800
)
 
34

 
766

 
(769
)
Other comprehensive income (loss)
 
6

 
(22
)
 
—

 
—

 
(16
)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE
 
$
(763
)
 
$
(822
)
 
$
34

 
$
766

 
$
(785
)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
AS OF DECEMBER 31, 2011
($ in millions)
 
 
Parent 
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
REVENUES:
 
 
 
 
 
 
 
 
 
 
Natural gas, oil and NGL
 
$
—

 
$
5,886

 
$
84

 
$
54

 
$
6,024

Marketing, gathering and compression
 
—

 
5,050

 
171

 
(131
)
 
5,090

Oilfield services
 
—

 
—

 
1,260

 
(739
)
 
521

Total Revenues
 
—

 
10,936

 
1,515

 
(816
)
 
11,635

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
 
Natural gas, oil and NGL production
 
—

 
1,073

 
—

 
—

 
1,073

Production taxes
 
—

 
190

 
2

 
—

 
192

Marketing, gathering and compression
 
—

 
4,946

 
113

 
(92
)
 
4,967

Oilfield services
 
—

 
1

 
976

 
(575
)
 
402

General and administrative
 
—

 
477

 
71

 
—

 
548

Natural gas, oil and NGL depreciation, depletion and amortization
 
—

 
1,625

 
7

 
—

 
1,632

Depreciation and amortization of other assets
 
—

 
169

 
217

 
(95
)
 
291

Net gains on sales of fixed assets
 
—

 
(2
)
 
(435
)
 
—

 
(437
)
Impairments of fixed assets and other
 
—

 
—

 
46

 
—

 
46

Total Operating Expenses
 
—

 
8,479

 
997

 
(762
)
 
8,714

INCOME (LOSS) FROM OPERATIONS
 
—

 
2,457

 
518

 
(54
)
 
2,921

OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
 
 
 
Interest expense
 
(640
)
 
(12
)
 
(50
)
 
658

 
(44
)
Earnings (losses) on investments
 
—

 
61

 
95

 
—

 
156

Losses on purchases or exchanges of debt
 
(176
)
 
—

 
—

 
—

 
(176
)
Other income
 
646

 
6

 
20

 
(649
)
 
23

Equity in net earnings of subsidiary
 
1,845

 
276

 
—

 
(2,121
)
 
—

Total Other Income (Expense)
 
1,675

 
331

 
65

 
(2,112
)
 
(41
)
INCOME (LOSS) BEFORE INCOME TAXES
 
1,675

 
2,788

 
583

 
(2,166
)
 
2,880

INCOME TAX EXPENSE (BENEFIT)
 
(67
)
 
980

 
227

 
(17
)
 
1,123

NET INCOME (LOSS)
 
1,742

 
1,808

 
356

 
(2,149
)
 
1,757

Net income attributable to noncontrolling interests
 
—

 
—

 
—

 
(15
)
 
(15
)
NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE
 
1,742

 
1,808

 
356

 
(2,164
)
 
1,742

Other comprehensive income (loss)
 
9

 
(7
)
 
—

 
—

 
2

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE
 
$
1,751

 
$
1,801

 
$
356

 
$
(2,164
)
 
$
1,744

 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
AS OF DECEMBER 31, 2010
($ in millions)
 
 
Parent  
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
REVENUES:
 
 
 
 
 
 
 
 
 
 
Natural gas, oil and NGL
 
$
—

 
$
5,603

 
$
—

 
$
44

 
$
5,647

Marketing, gathering and compression
 
—

 
3,475

 
104

 
(100
)
 
3,479

Oilfield services
 
—

 
—

 
765

 
(525
)
 
240

Total Revenues
 
—

 
9,078

 
869

 
(581
)
 
9,366

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
 
Natural gas, oil and NGL production
 
—

 
893

 
—

 
—

 
893

Production taxes
 
—

 
157

 
—

 
—

 
157

Marketing, gathering and compression
 
—

 
3,356

 
41

 
(45
)
 
3,352

Oilfield services
 
—

 
—

 
614

 
(406
)
 
208

General and administrative
 
2

 
410

 
41

 
—

 
453

Natural gas, oil and NGL depreciation, depletion and amortization
 
—

 
1,394

 
—

 
—

 
1,394

Depreciation and amortization of other assets
 
—

 
161

 
130

 
(71
)
 
220

Net gains on sales of fixed assets
 
—

 
—

 
(135
)
 
(2
)
 
(137
)
Impairments of fixed assets and other
 
—

 
—

 
21

 
—

 
21

Total Operating Expenses
 
2

 
6,371

 
712

 
(524
)
 
6,561

INCOME (LOSS) FROM OPERATIONS
 
(2
)
 
2,707

 
157

 
(57
)
 
2,805

OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
 
 
 
Interest expense
 
(637
)
 
(74
)
 
(26
)
 
718

 
(19
)
Earnings (losses) on investments
 
—

 
34

 
193

 
—

 
227

Gains on sales of investments
 
—

 
—

 
—

 
—

 
—

Losses on purchases or exchanges of debt
 
(129
)
 
—

 
—

 
—

 
(129
)
Impairment of investments
 
—

 
(16
)
 
—

 
—

 
(16
)
Other income
 
718

 
11

 
5

 
(718
)
 
16

Equity in net earnings of subsidiary
 
1,804

 
144

 
—

 
(1,948
)
 
—

Total Other Income (Expense)
 
1,756

 
99

 
172

 
(1,948
)
 
79

INCOME (LOSS) BEFORE INCOME TAXES
 
1,754

 
2,806


329


(2,005
)
 
2,884

INCOME TAX EXPENSE (BENEFIT)
 
(20
)
 
1,025

 
127

 
(22
)
 
1,110

NET INCOME (LOSS)
 
1,774

 
1,781


202


(1,983
)
 
1,774

Net income attributable to noncontrolling interests
 
—

 
—

 
—

 
—

 
—

NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE
 
1,774

 
1,781

 
202

 
(1,983
)
 
1,774

Other comprehensive income (loss)
 
(14
)
 
(256
)
 
—

 
—

 
(270
)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE
 
$
1,760

 
$
1,525

 
$
202

 
$
(1,983
)
 
$
1,504
Condensed Consolidating Statements Of Cash Flows
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2012
($ in millions) 
 
 
Parent  
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
 
$
—

 
$
3,909

 
$
305

 
$
(1,377
)
 
$
2,837

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
Additions to proved and unproved properties
 
—

 
(11,448
)
 
(643
)
 
—

 
(12,091
)
Proceeds from divestitures of proved and unproved properties
 
—

 
5,583

 
301

 
—

 
5,884

Additions to other property and equipment
 
—

 
(855
)
 
(1,796
)
 
—

 
(2,651
)
Other investing activities
 
—

 
4,581

 
2,133

 
(2,840
)
 
3,874

Cash used in investing activities
 
—

 
(2,139
)
 
(5
)
 
(2,840
)
 
(4,984
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
Proceeds from credit facilities borrowings
 
—

 
18,336

 
1,982

 
—

 
20,318

Payments on credit facilities borrowings
 
—

 
(20,056
)
 
(1,594
)
 
—

 
(21,650
)
Proceeds from issuance of term loans, net of discount and offering costs
 
5,722

 
—

 
—

 
—

 
5,722

Proceeds from issuance of senior notes, net of discount and offering costs
 
1,263

 
—

 
—

 
—

 
1,263

Cash paid to purchase debt
 
(4,000
)
 
—

 
—

 
—

 
(4,000
)
Proceeds from sales of noncontrolling interests
 
—

 
—

 
1,077

 
—

 
1,077

Other financing activities
 
(417
)
 
(328
)
 
(4,119
)
 
4,217

 
(647
)
Intercompany advances, net
 
(2,568
)
 
504

 
2,064

 
—

 
—

Cash provided by financing activities
 
—

 
(1,544
)
 
(590
)
 
4,217

 
2,083

Net increase (decrease) in cash and cash equivalents
 
—

 
226


(290
)

—

 
(64
)
Cash and cash equivalents, beginning of period
 
—

 
2

 
349

 
—

 
351

Cash and cash equivalents, end of period
 
$
—

 
$
228

 
$
59

 
$
—

 
$
287

 
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2011
($ in millions) 
 
 
Parent  
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
 
$
—

 
$
5,868

 
$
438

 
$
(403
)
 
$
5,903

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
Additions to proved and unproved properties
 
—

 
(10,420
)
 
(2,021
)
 
—

 
(12,441
)
Proceeds from divestitures of proved and unproved properties
 
—

 
7,651

 
—

 
—

 
7,651

Additions to other property and equipment
 
—

 
(520
)
 
(1,489
)
 
—

 
(2,009
)
Other investing activities
 
—

 
(348
)
 
719

 
616

 
987

Cash used in investing activities
 
—

 
(3,637
)
 
(2,791
)
 
616

 
(5,812
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
Proceeds from credit facilities borrowings
 
—

 
14,005

 
1,504

 
—

 
15,509

Payments on credit facilities borrowings
 
—

 
(15,898
)
 
(1,568
)
 
—

 
(17,466
)
Proceeds from issuance of senior notes, net of discount and offering costs
 
977

 
—

 
637

 
—

 
1,614

Cash paid to purchase debt
 
(2,015
)
 
—

 
—

 
—

 
(2,015
)
Proceeds from sales of noncontrolling interests
 
—

 
—

 
1,348

 
—

 
1,348

Other financing activities
 
(494
)
 
1,413

 
462

 
(213
)
 
1,168

Intercompany advances, net
 
1,532

 
(1,750
)
 
218

 
—

 
—

Cash provided by financing activities
 
—

 
(2,230
)
 
2,601

 
(213
)
 
158

Net increase (decrease) in cash and cash equivalents
 
—

 
1

 
248

 
—

 
249

Cash and cash equivalents, beginning of period
 
—

 
1

 
101

 
—

 
102

Cash and cash equivalents, end of period
 
$
—

 
$
2

 
$
349

 
$
—

 
$
351

    
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2010
($ in millions) 
 
 
Parent  
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
 
$
—

 
$
5,062

 
$
325

 
$
(270
)
 
$
5,117

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
Additions to proved and unproved properties
 
—

 
(12,187
)
 
—

 
—

 
(12,187
)
Proceeds from divestitures of proved and unproved properties
 
—

 
4,292

 
—

 
—

 
4,292

Additions to other property and equipment
 
—

 
(502
)
 
(824
)
 
—

 
(1,326
)
Other investing activities
 
—

 
(41
)
 
627

 
132

 
718

Cash used in investing activities
 
—

 
(8,438
)
 
(197
)
 
132

 
(8,503
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
Proceeds from credit facilities borrowings
 
—

 
14,384

 
733

 
—

 
15,117

Payments on credit facilities borrowings
 
—

 
(12,664
)
 
(639
)
 
—

 
(13,303
)
Proceeds from issuance of senior notes, net of discount and offering costs
 
1,967

 
—

 
—

 
—

 
1,967

Proceeds from issuance of preferred stock, net of offering costs
 
2,562

 
—

 
—

 
—

 
2,562

Cash paid to purchase debt
 
(3,434
)
 
—

 
—

 
—

 
(3,434
)
Proceeds from sales of noncontrolling interests
 
—

 
—

 
—

 
—

 
—

Other financing activities
 
(367
)
 
641

 
(149
)
 
147

 
272

Intercompany advances, net
 
(728
)
 
723

 
14

 
(9
)
 
—

Cash provided by financing activities
 
—

 
3,084

 
(41
)
 
138

 
3,181

Net increase (decrease) in cash and cash equivalents
 
—

 
(292
)

87


—

 
(205
)
Cash and cash equivalents, beginning of period
 
—

 
293

 
14

 
—

 
307

Cash and cash equivalents, end of period
 
$
—

 
$
1

 
$
101

 
$
—

 
$
102