Debt (Tables)

9 Months Ended

Sep. 30, 2013

Text Block [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

Our long-term debt consisted of the following as of September 30, 2013 and December 31, 2012:

	September 30, 2013			December 31, 2012
	($ in millions)
Term loan due 2017	$	2,000		$	2,000
7.625% senior notes due 2013	—			464
9.5% senior notes due 2015	1,265			1,265
3.25% senior notes due 2016	500			—
6.25% euro-denominated senior notes due 2017(a)	465			454
6.5% senior notes due 2017	660			660
6.875% senior notes due 2018	97			474
7.25% senior notes due 2018	669			669
6.625% senior notes due 2019(b)	650			650
6.775% senior notes due 2019	—			1,300
6.625% senior notes due 2020	1,300			1,300
6.875% senior notes due 2020	500			500
6.125% senior notes due 2021	1,000			1,000
5.375% senior notes due 2021	700			—
5.75% senior notes due 2023	1,100			—
2.75% contingent convertible senior notes due 2035(c)	396			396
2.5% contingent convertible senior notes due 2037(c)	1,168			1,168
2.25% contingent convertible senior notes due 2038(c)	347			347
Corporate revolving bank credit facility	—			—
Oilfield services revolving bank credit facility	285			418
Discount on senior notes and term loan(d)	(380		)	(465		)
Interest rate derivatives(e)	14			20
Total debt, net	12,736			12,620
Less current maturities of long-term debt, net(f)	—			(463		)
Total long-term debt, net	$	12,736		$	12,157

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(a) The principal amount shown is based on the exchange rate of $1.3527 to €1.00 and $1.3193 to €1.00 as of September 30, 2013 and December 31, 2012, respectively. See Note 7 for information on our related foreign currency derivatives.

(b) Issuers are Chesapeake Oilfield Operating, L.L.C. (COO), an indirect wholly owned subsidiary of the Company, and Chesapeake Oilfield Finance, Inc. (COF), a wholly owned subsidiary of COO formed solely to facilitate the offering of the 6.625% Senior Notes due 2019. COF is nominally capitalized and has no operations or revenues. Chesapeake Energy Corporation is the issuer of all other senior notes and the contingent convertible senior notes.

(c) The holders of our contingent convertible senior notes may require us to repurchase, in cash, all or a portion of their notes at 100% of the principal amount of the notes on any of four dates that are five, ten, fifteen and twenty years before the maturity date. The notes are convertible, at the holder’s option, prior to maturity under certain circumstances into cash and, if applicable, shares of our common stock using a net share settlement process. One such triggering circumstance is when the price of our common stock exceeds a threshold amount during a specified period in a fiscal quarter. Convertibility based on common stock price is measured quarterly. In the Current Quarter, the price of our common stock was below the threshold level for each series of the contingent convertible senior notes during the specified period and, as a result, the holders do not have the option to convert their notes into cash and common stock in the fourth quarter of 2013 under this provision. The notes are also convertible, at the holder’s option, during specified five-day periods if the trading price of the notes is below certain levels determined by reference to the trading price of our common stock. During the Current Quarter, the notes were not convertible under this provision. In general, upon conversion of a contingent convertible senior note, the holder will receive cash equal to the principal amount of the note and common stock for the note’s conversion value in excess of such principal amount. We will pay contingent interest on the convertible senior notes after they have been outstanding at least ten years under certain conditions. We may redeem the convertible senior notes once they have been outstanding for ten years at a redemption price of 100% of the principal amount of the notes, payable in cash. The optional repurchase dates, the common stock price conversion threshold amounts and the ending date of the first six-month period in which contingent interest may be payable for the contingent convertible senior notes are as follows:

Contingent       Convertible       Senior  Notes	Repurchase Dates	Common Stock  Price Conversion  Thresholds		Contingent Interest First Payable (if applicable)
2.75% due 2035	November 15, 2015, 2020, 2025, 2030	$	48.31	May 14, 2016
2.5% due 2037	May 15, 2017, 2022, 2027, 2032	$	63.62	November 14, 2017
2.25% due 2038	December 15, 2018, 2023, 2028, 2033	$	107.01	June 14, 2019

(d) Discount as of September 30, 2013 and December 31, 2012 included $322 million and $376 million, respectively, associated with the equity component of our contingent convertible senior notes. This discount is amortized based on an effective yield method. The discount also included $34 million and $40 million as of September 30, 2013 and December 31, 2012, respectively, associated with our term loan discussed further below.

(e) See Note 7 for further discussion related to these instruments.

Schedule of Line of Credit Facilities [Table Text Block]

In June 2012, we paid off and terminated our midstream credit facility. Our remaining revolving bank credit facilities are described below.

	Corporate Credit Facility(a)		Oilfield Services Credit Facility(b)
	($ in millions)
Facility structure	Senior secured revolving		Senior secured revolving
Maturity date	December 2015		November 2016
Borrowing capacity	$	4,000	$	500
Amount outstanding as of September 30, 2013	$	—	$	285
Letters of credit outstanding as of September 30, 2013	$	23	$	—

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(a) Co-borrowers are Chesapeake Exploration, L.L.C., Chesapeake Appalachia, L.L.C. and Chesapeake Louisiana, L.P.

(b) Borrower is COO.