XML 77 R43.htm IDEA: XBRL DOCUMENT v2.4.0.8
Condensed Consolidating Financial Information (Tables)
6 Months Ended
Jun. 30, 2013
Text Block [Abstract]  
Schedule of Condensed Balance Sheet [Table Text Block]
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF JUNE 30, 2013
($ in millions) 
 
 
Parent  
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
CURRENT ASSETS:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$

 
$
655

 
$
22

 
$

 
$
677

Restricted cash
 

 

 
81

 

 
81

Other
 
95

 
2,550

 
686

 
(499
)
 
2,832

Current assets held for sale
 

 
2

 

 

 
2

Intercompany receivable, net
 
25,923

 

 

 
(25,923
)
 

Total Current Assets
 
26,018

 
3,207

 
789

 
(26,422
)
 
3,592

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

 
29,270

 
3,144

 
70

 
32,484

Other property and equipment, net
 

 
2,595

 
1,759

 

 
4,354

Property and equipment held for sale, net
 

 
510

 
1

 

 
511

Total Property and Equipment,
Net
 

 
32,375

 
4,904

 
70

 
37,349

LONG-TERM ASSETS:
 
 
 
 
 
 
 
 
 
 
Other assets
 
121

 
1,331

 
124

 
(372
)
 
1,204

Investments in subsidiaries and
intercompany advances
 
3,117

 
(143
)
 

 
(2,974
)
 

TOTAL ASSETS
 
$
29,256

 
$
36,770


$
5,817


$
(29,698
)
 
$
42,145

CURRENT LIABILITIES:
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
$
311

 
$
5,316

 
$
474

 
$
(499
)
 
$
5,602

Current liabilities held for sale
 

 
18

 

 

 
18

Intercompany payable, net
 

 
24,242

 
1,386

 
(25,628
)
 

Total Current Liabilities
 
311

 
29,576

 
1,860

 
(26,127
)
 
5,620

LONG-TERM LIABILITIES:
 
 
 
 
 
 
 
 
 
 
Long-term debt, net
 
12,008

 

 
1,049

 

 
13,057

Deferred income tax liabilities
 
595

 
2,829

 
130

 
(294
)
 
3,260

Other long-term liabilities
 
307

 
1,248

 
821

 
(372
)
 
2,004

Total Long-Term Liabilities
 
12,910

 
4,077

 
2,000

 
(666
)
 
18,321

EQUITY:
 
 
 
 
 
 
 
 
 
 
Chesapeake stockholders’ equity
 
16,035

 
3,117

 
1,957

 
(5,074
)
 
16,035

Noncontrolling interests
 

 

 

 
2,169

 
2,169

Total Equity
 
16,035

 
3,117

 
1,957

 
(2,905
)
 
18,204

TOTAL LIABILITIES AND EQUITY
 
$
29,256

 
$
36,770

 
$
5,817

 
$
(29,698
)
 
$
42,145

 
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

Intercompany receivable, net
 
25,584

 

 

 
(25,584
)
 

Total Current Assets
 
25,585

 
2,597

 
687

 
(25,921
)
 
2,948

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

 
29,083

 
3,057

 
(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
 

 
32,404

 
4,985

 
(222
)
 
37,167

LONG-TERM ASSETS:
 
 
 
 
 
 
 
 
 
 
Other assets
 
217

 
1,396

 
261

 
(378
)
 
1,496

Investments in subsidiaries and
intercompany advances
 
2,241

 
(186
)
 

 
(2,055
)
 

TOTAL ASSETS
 
$
28,043

 
$
36,211

 
$
5,933

 
$
(28,576
)
 
$
41,611

CURRENT LIABILITIES:
 
 
 
 
 
 
 
 
 
 
Current liabilities
 
$
789

 
$
5,368

 
$
426

 
$
(338
)
 
$
6,245

Current liabilities held for sale
 

 

 
21

 

 
21

Intercompany payable, net
 

 
24,394

 
1,311

 
(25,705
)
 

Total Current Liabilities
 
789

 
29,762

 
1,758

 
(26,043
)
 
6,266

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

 

 
1,068

 

 
12,157

Deferred income tax liabilities
 
361

 
2,425

 
127

 
(106
)
 
2,807

Other liabilities
 
235

 
1,783

 
839

 
(372
)
 
2,485

Total Long-Term Liabilities
 
11,685

 
4,208

 
2,034

 
(478
)
 
17,449

EQUITY:
 
 
 
 
 
 
 
 
 
 
Chesapeake stockholders’ equity
 
15,569

 
2,241

 
2,141

 
(4,382
)
 
15,569

Noncontrolling interests
 

 

 

 
2,327

 
2,327

Total Equity
 
15,569

 
2,241

 
2,141

 
(2,055
)
 
17,896

TOTAL LIABILITIES AND EQUITY
 
$
28,043

 
$
36,211

 
$
5,933

 
$
(28,576
)
 
$
41,611

Schedule of Condensed Income Statement [Table Text Block]
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2013
($ in millions)
 
 
Parent  
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
REVENUES:
 
 
 
 
 
 
 
 
 
 
Natural gas, oil and NGL
 
$

 
$
2,241

 
$
160

 
$
5

 
$
2,406

Marketing, gathering and compression
 

 
2,051

 
6

 

 
2,057

Oilfield services
 

 

 
598

 
(386
)
 
212

Total Revenues
 

 
4,292

 
764

 
(381
)
 
4,675

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
 
Natural gas, oil and NGL production
 

 
274

 
14

 

 
288

Production taxes
 

 
57

 
2

 

 
59

Marketing, gathering and compression
 

 
2,026

 
2

 

 
2,028

Oilfield services
 

 

 
476

 
(299
)
 
177

General and administrative
 

 
80

 
26

 

 
106

Employee retirement and other
termination benefits
 

 
6

 
1

 

 
7

Natural gas, oil and NGL depreciation,
depletion and amortization
 

 
589

 
56

 

 
645

Depreciation and amortization of other
assets
 

 
45

 
73

 
(42
)
 
76

Impairment of natural gas and oil
properties
 

 

 
70

 
(70
)
 

Impairments of fixed assets and other
 

 
224

 
7

 

 
231

Net gains on sales of fixed assets
 

 
(109
)
 

 

 
(109
)
Total Operating Expenses
 

 
3,192

 
727

 
(411
)
 
3,508

INCOME FROM OPERATIONS
 

 
1,100

 
37

 
30

 
1,167

OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
 
 
 
Interest expense
 
(278
)
 
(48
)
 
(21
)
 
243

 
(104
)
Earnings (losses) on investments
 

 
23

 

 

 
23

Loss on sale of investment
 

 
(10
)
 

 

 
(10
)
Losses on purchases of debt
 
(70
)
 

 

 

 
(70
)
Other income
 
228

 
21

 
4

 
(250
)
 
3

Equity in net earnings of subsidiary
 
655

 
(57
)
 

 
(598
)
 

Total Other Income (Expense)
 
535

 
(71
)
 
(17
)
 
(605
)
 
(158
)
INCOME BEFORE INCOME TAXES
 
535

 
1,029


20


(575
)
 
1,009

INCOME TAX EXPENSE (BENEFIT)
 
(45
)
 
412

 
8

 
9

 
384

NET INCOME
 
580

 
617

 
12

 
(584
)
 
625

Net income attributable to
noncontrolling interests
 

 

 

 
(45
)
 
(45
)
NET INCOME ATTRIBUTABLE
TO CHESAPEAKE
 
580

 
617

 
12

 
(629
)
 
580

Other comprehensive income (loss)
 
2

 
(2
)
 

 

 

COMPREHENSIVE INCOME
ATTRIBUTABLE TO CHESAPEAKE
 
$
582

 
$
615

 
$
12

 
$
(629
)
 
$
580

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2012
($ in millions)
 
 
Parent 
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
REVENUES:
 
 
 
 
 
 
 
 
 
 
Natural gas, oil and NGL
 
$

 
$
2,009

 
$
106

 
$
2

 
$
2,117

Marketing, gathering and compression
 

 
1,063

 
50

 

 
1,113

Oilfield services
 

 

 
506

 
(347
)
 
159

Total Revenues
 

 
3,072

 
662

 
(345
)
 
3,389

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
 
Natural gas, oil and NGL production
 

 
329

 
6

 

 
335

Production taxes
 

 
40

 
1

 

 
41

Marketing, gathering and compression
 

 
1,070

 
26

 

 
1,096

Oilfield services
 

 
1

 
373

 
(265
)
 
109

General and administrative
 

 
126

 
30

 
(1
)
 
155

Employee retirement and other
termination benefits
 

 
1

 

 

 
1

Natural gas, oil and NGL depreciation,
depletion and amortization
 

 
553

 
35

 

 
588

Depreciation and amortization of other
assets
 

 
43

 
75

 
(35
)
 
83

Impairments of fixed assets and other
 

 
219

 
24

 

 
243

Net gains on sales of fixed assets
 

 
(1
)
 
1

 

 

Total Operating Expenses
 

 
2,381

 
571

 
(301
)
 
2,651

INCOME FROM OPERATIONS
 

 
691

 
91

 
(44
)
 
738

OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
 
 
 
Interest expense
 
(231
)
 
17

 
(25
)
 
225

 
(14
)
Earnings (losses) on investments
 

 
(88
)
 
29

 

 
(59
)
Gains on sale of investments
 

 
1,030

 

 

 
1,030

Other income
 
218

 
18

 
33

 
(264
)
 
5

Equity in net earnings of subsidiary
 
980

 
(34
)
 

 
(946
)
 

Total Other Income (Expense)
 
967

 
943

 
37

 
(985
)
 
962

INCOME BEFORE INCOME TAXES
 
967

 
1,634

 
128

 
(1,029
)
 
1,700

INCOME TAX EXPENSE (BENEFIT)
 
(5
)
 
651

 
49

 
(32
)
 
663

NET INCOME
 
972

 
983

 
79

 
(997
)
 
1,037

Net income attributable to
noncontrolling interests
 

 

 

 
(65
)
 
(65
)
NET INCOME ATTRIBUTABLE
TO CHESAPEAKE
 
972

 
983

 
79

 
(1,062
)
 
972

Other comprehensive income (loss)
 
(3
)
 
(20
)
 

 

 
(23
)
COMPREHENSIVE INCOME
ATTRIBUTABLE TO CHESAPEAKE
 
$
969

 
$
963

 
$
79

 
$
(1,062
)
 
$
949


CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2013
($ in millions)
 
 
Parent  
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
REVENUES:
 
 
 
 
 
 
 
 
 
 
Natural gas, oil and NGL
 
$

 
$
3,562

 
$
288

 
$
8

 
$
3,858

Marketing, gathering and compression
 

 
3,829

 
9

 

 
3,838

Oilfield services
 

 

 
1,152

 
(750
)
 
402

Total Revenues
 

 
7,391

 
1,449

 
(742
)
 
8,098

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
 
Natural gas, oil and NGL production
 

 
570

 
25

 

 
595

Production taxes
 

 
108

 
4

 

 
112

Marketing, gathering and compression
 

 
3,767

 
5

 

 
3,772

Oilfield services
 

 

 
902

 
(570
)
 
332

General and administrative
 

 
167

 
49

 

 
216

Employee retirement and other
termination benefits
 

 
137

 
3

 

 
140

Natural gas, oil and NGL depreciation,
depletion and amortization
 

 
1,180

 
113

 

 
1,293

Depreciation and amortization of other
assets
 

 
93

 
144

 
(83
)
 
154

Impairment of natural gas and oil
properties
 

 

 
161

 
(161
)
 

Impairments of fixed assets and other
 

 
251

 
7

 

 
258

Net gains on sales of fixed assets
 

 
(158
)
 

 

 
(158
)
Total Operating Expenses
 

 
6,115

 
1,413

 
(814
)
 
6,714

INCOME (LOSS) FROM OPERATIONS
 

 
1,276

 
36

 
72

 
1,384

OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
 
 
 
Interest expense
 
(496
)
 
(51
)
 
(42
)
 
465

 
(124
)
Earnings (losses) on investments
 

 
(4
)
 

 

 
(4
)
Impairment of investment
 

 
(10
)
 

 

 
(10
)
Losses on sales of investments
 

 
(10
)
 

 

 
(10
)
Losses on purchases of debt
 
(70
)
 

 

 

 
(70
)
Other income
 
443

 
35

 
7

 
(477
)
 
8

Equity in net earnings of subsidiary
 
715

 
(144
)
 

 
(571
)
 

Total Other Income (Expense)
 
592

 
(184
)
 
(35
)
 
(583
)
 
(210
)
INCOME BEFORE INCOME TAXES
 
592

 
1,092

 
1

 
(511
)
 
1,174

INCOME TAX EXPENSE (BENEFIT)
 
(47
)
 
470

 

 
23

 
446

NET INCOME
 
639

 
622

 
1

 
(534
)
 
728

Net income attributable to
noncontrolling interests
 

 

 

 
(89
)
 
(89
)
NET INCOME ATTRIBUTABLE
TO CHESAPEAKE
 
639

 
622

 
1

 
(623
)
 
639

Other comprehensive income
 

 
12

 

 

 
12

COMPREHENSIVE INCOME (LOSS)
ATTRIBUTABLE TO CHESAPEAKE
 
$
639

 
$
634

 
$
1

 
$
(623
)
 
$
651

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2012
($ in millions)
 
 
Parent  
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
REVENUES:
 
 
 
 
 
 
 
 
 
 
Natural gas, oil and NGL
 
$

 
$
3,053

 
$
130

 
$
2

 
$
3,185

Marketing, gathering and compression
 

 
2,235

 
93

 

 
2,328

Oilfield services
 

 

 
955

 
(661
)
 
294

Total Revenues
 

 
5,288

 
1,178

 
(659
)
 
5,807

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
 
Natural gas, oil and NGL production
 

 
678

 
7

 

 
685

Production taxes
 

 
87

 
2

 

 
89

Marketing, gathering and compression
 

 
2,239

 
53

 

 
2,292

Oilfield services
 

 
1

 
728

 
(524
)
 
205

General and administrative
 

 
235

 
56

 

 
291

Employee retirement and other
termination benefits
 

 
1

 

 

 
1

Natural gas, oil and NGL depreciation,
depletion and amortization
 

 
1,045

 
49

 

 
1,094

Depreciation and amortization of other
assets
 

 
88

 
147

 
(69
)
 
166

Impairments of fixed assets and other
 

 
219

 
24

 

 
243

Net gains on sales of fixed assets
 

 
(2
)
 

 

 
(2
)
Total Operating Expenses
 

 
4,591

 
1,066

 
(593
)
 
5,064

INCOME FROM OPERATIONS
 

 
697

 
112

 
(66
)
 
743

OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
 
 
 
Interest expense
 
(392
)
 
15

 
(43
)
 
394

 
(26
)
Earnings (losses) on investments
 

 
(119
)
 
55

 

 
(64
)
Gain on sale of investment
 

 
1,030

 

 

 
1,030

Other income
 
381

 
27

 
67

 
(464
)
 
11

Equity in net earnings of subsidiary
 
951

 
(52
)
 

 
(899
)
 

Total Other Income (Expense)
 
940

 
901

 
79

 
(969
)
 
951

INCOME BEFORE INCOME TAXES
 
940

 
1,598

 
191

 
(1,035
)
 
1,694

INCOME TAX EXPENSE (BENEFIT)
 
(4
)
 
644

 
74

 
(53
)
 
661

NET INCOME
 
944

 
954

 
117

 
(982
)
 
1,033

Net income attributable to
noncontrolling interests
 

 

 

 
(89
)
 
(89
)
NET INCOME ATTRIBUTABLE
TO CHESAPEAKE
 
944

 
954

 
117

 
(1,071
)
 
944

Other comprehensive income (loss)
 

 
(15
)
 

 

 
(15
)
COMPREHENSIVE INCOME (LOSS)
ATTRIBUTABLE TO CHESAPEAKE
 
$
944

 
$
939

 
$
117

 
$
(1,071
)
 
$
929


Schedule of Condensed Cash Flow Statement [Table Text Block]
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2013
($ in millions) 
 
 
Parent  
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
CASH FLOWS FROM OPERATING
ACTIVITIES
 
$

 
$
1,933

 
$
297

 
$
(25
)
 
$
2,205

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

 
(3,238
)
 
(457
)
 

 
(3,695
)
Proceeds from divestitures of proved
and unproved properties
 

 
1,834

 
61

 

 
1,895

Additions to other property and
equipment
 

 
(316
)
 
(190
)
 

 
(506
)
Other investing activities
 

 
161

 
440

 
130

 
731

Cash used in investing activities
 

 
(1,559
)
 
(146
)
 
130

 
(1,575
)
CASH FLOWS FROM FINANCING
ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
Proceeds from credit facilities
borrowings
 

 
6,013

 
546

 

 
6,559

Payments on credit facilities borrowings
 

 
(6,013
)
 
(565
)
 

 
(6,578
)
Proceeds from issuance of senior notes,
net of discount and offering costs
 
2,274

 

 

 

 
2,274

Cash paid to purchase debt
 
(1,874
)
 

 

 

 
(1,874
)
Proceeds from sales of noncontrolling
interests
 

 
5

 

 

 
5

Other financing activities
 
(245
)
 
(292
)
 
16

 
(105
)
 
(626
)
Intercompany advances, net
 
(155
)
 
340

 
(185
)
 

 

Cash provided by financing
activities
 

 
53

 
(188
)
 
(105
)
 
(240
)
Net increase (decrease) in cash and cash
equivalents
 

 
427


(37
)


 
390

Cash and cash equivalents, beginning of
period
 

 
228

 
59

 

 
287

Cash and cash equivalents, end of period
 
$

 
$
655

 
$
22

 
$

 
$
677

 
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2012
($ in millions) 
 
 
Parent  
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
CASH FLOWS FROM OPERATING
ACTIVITIES
 
$

 
$
1,846

 
$
128

 
$
(945
)
 
$
1,029

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

 
(6,693
)
 
(222
)
 

 
(6,915
)
Proceeds from divestitures of proved
and unproved properties
 

 
1,555

 

 

 
1,555

Additions to other property and
equipment
 

 
(429
)
 
(882
)
 

 
(1,311
)
Other investing activities
 

 
3,426

 
(171
)
 
(1,505
)
 
1,750

Cash used in investing activities
 

 
(2,141
)
 
(1,275
)
 
(1,505
)
 
(4,921
)
CASH FLOWS FROM FINANCING
ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
Proceeds from credit facilities borrowings
 

 
7,990

 
2,114

 

 
10,104

Payments on credit facilities borrowings
 

 
(9,709
)
 
(1,883
)
 

 
(11,592
)
Proceeds from issuance of senior notes,
net of discount and offering costs
 
1,263

 

 

 

 
1,263

Proceeds from issuance of term loans,
net of discount and offering costs
 
3,789

 

 

 

 
3,789

Proceeds from sales of noncontrolling
interests
 

 

 
1,039

 

 
1,039

Other financing activities
 
(235
)
 
117

 
(2,363
)
 
2,450

 
(31
)
Intercompany advances, net
 
(4,817
)
 
2,807

 
2,010

 

 

Cash provided by financing
activities
 

 
1,205

 
917

 
2,450

 
4,572

Change in cash and cash equivalents
classified in current assets held for sale
 

 

 
(7
)
 

 
(7
)
Net increase in cash and cash equivalents
 

 
910

 
(237
)
 

 
673

Cash and cash equivalents, beginning of
period
 

 
1

 
350

 

 
351

Cash and cash equivalents, end of period
 
$

 
$
911

 
$
113

 
$

 
$
1,024