Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of Condensed Balance Sheet [Table Text Block]

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF SEPTEMBER 30, 2013

($ in millions)

	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	966	$	—		$	14	$	7		$	987
Restricted cash	—		—			82		(7		)	75
Other	104		2,606			645		(423		)	2,932
Current assets held for sale	—		—			—		—			—
Intercompany receivable, net	25,863		—			—		(25,863		)	—
Total Current Assets	26,933		2,606			741		(26,286		)	3,994
PROPERTY AND EQUIPMENT:
Natural gas and oil properties, at cost based on full cost accounting, net	—		29,245			3,123		151			32,519
Other property and equipment, net	—		2,561			1,445		(1		)	4,005
Property and equipment held for sale, net	—		571			26		—			597
Total Property and Equipment, Net	—		32,377			4,594		150			37,121
LONG-TERM ASSETS:
Other assets	114		1,316			115		(372		)	1,173
Investments in subsidiaries and intercompany advances	2,211		(238		)	—		(1,973		)	—
TOTAL ASSETS	$	29,258	$	36,061		$	5,450	$	(28,481	)	$	42,288
CURRENT LIABILITIES:
Current liabilities	$	242	$	5,427		$	431	$	(422	)	$	5,678
Intercompany payable, net	—		24,740			1,279		(26,019		)	—
Total Current Liabilities	242		30,167			1,710		(26,441		)	5,678
LONG-TERM LIABILITIES:
Long-term debt, net	11,801		—			935		—			12,736
Deferred income tax liabilities	638		2,397			60		328			3,423
Other long-term liabilities	381		1,286			900		(464		)	2,103
Total Long-Term Liabilities	12,820		3,683			1,895		(136		)	18,262
EQUITY:
Chesapeake stockholders’ equity	16,196		2,211			1,845		(4,056		)	16,196
Noncontrolling interests	—		—			—		2,152			2,152
Total Equity	16,196		2,211			1,845		(1,904		)	18,348
TOTAL LIABILITIES AND EQUITY	$	29,258	$	36,061		$	5,450	$	(28,481	)	$	42,288

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2012

($ in millions)

	Parent(a)		Guarantor Subsidiaries(a)			Non-Guarantor Subsidiaries		Eliminations			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	228	$	—		$	59	$	—		$	287
Restricted cash	—		—			111		—			111
Other	1		2,378			512		(345		)	2,546
Current assets held for sale	—		—			4		—			4
Intercompany receivable, net	25,356		—			—		(25,356		)	—
Total Current Assets	25,585		2,378			686		(25,701		)	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	$	35,992		$	5,932	$	(28,356	)	$	41,611
CURRENT LIABILITIES:
Current liabilities	$	789	$	5,377		$	424	$	(345	)	$	6,245
Current liabilities held for sale	—		—			21		—			21
Intercompany payable, net	—		24,166			1,312		(25,478		)	—
Total Current Liabilities	789		29,543			1,757		(25,823		)	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	$	35,992		$	5,932	$	(28,356	)	$	41,611

___________________________________________

(a) We have revised the amounts presented as cash and cash equivalents in the Guarantor Subsidiaries and Parent columns to properly reflect the cash of the Parent of $228 million, which was incorrectly presented in the Guarantor subsidiaries as of December 31, 2012. The impact of this error was not material to any previously issued financial statements.

Schedule of Condensed Income Statement [Table Text Block]

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED SEPTEMBER 30, 2013

($ in millions)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
REVENUES:
Natural gas, oil and NGL	$	—		$	1,400		$	185		$	1		$	1,586
Marketing, gathering and compression	—			3,031			1			—			3,032
Oilfield services	—			—			552			(303		)	249
Total Revenues	—			4,431			738			(302		)	4,867
OPERATING EXPENSES:
Natural gas, oil and NGL production	—			268			14			—			282
Production taxes	—			60			2			—			62
Marketing, gathering and compression	—			3,009			—			—			3,009
Oilfield services	—			23			460			(272		)	211
General and administrative	—			97			24			(1		)	120
Restructuring and other termination benefits	—			63			—			—			63
Natural gas, oil and NGL depreciation, depletion and amortization	—			591			61			—			652
Depreciation and amortization of other assets	—			43			74			(38		)	79
Impairment of natural gas and oil properties	—			—			99			(99		)	—
Impairments of fixed assets and other	—			56			29			—			85
Net (gains) losses on sales of fixed assets	—			(133		)	—			1			(132		)
Total Operating Expenses	—			4,077			763			(409		)	4,431
INCOME (LOSS) FROM OPERATIONS	—			354			(25		)	107			436
OTHER INCOME (EXPENSE):
Interest expense	(207		)	(27		)	(21		)	215			(40		)
Losses on investments	—			(22		)	—			—			(22		)
Impairment of investment	—			—			(1		)	1			—
Gains (losses) on sales of investments	—			3			—			—			3
Other income (expense)	208			44			2			(244		)	10
Equity in net earnings of subsidiary	201			(75		)	—			(126		)	—
Total Other Income (Expense)	202			(77		)	(20		)	(154		)	(49		)
INCOME (LOSS) BEFORE INCOME TAXES	202			277			(45		)	(47		)	387
INCOME TAX EXPENSE (BENEFIT)	—			134			(17		)	30			147
NET INCOME (LOSS)	202			143			(28		)	(77		)	240
Net income attributable to noncontrolling interests	—			—			—			(38		)	(38		)
NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE	202			143			(28		)	(115		)	202
Other comprehensive income (loss)	2			1			(2		)	—			1
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE	$	204		$	144		$	(30	)	$	(115	)	$	203

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED SEPTEMBER 30, 2012

($ in millions)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
REVENUES:
Natural gas, oil and NGL	$	—		$	1,357		$	79		$	1		$	1,437
Marketing, gathering and compression	—			1,319			62			—			1,381
Oilfield services	—			—			485			(333		)	152
Total Revenues	—			2,676			626			(332		)	2,970
OPERATING EXPENSES:
Natural gas, oil and NGL production	—			311			9			—			320
Production taxes	—			51			2			—			53
Marketing, gathering and compression	—			1,310			29			—			1,339
Oilfield services	—			80			361			(325		)	116
General and administrative	—			108			37			—			145
Restructuring and other termination benefits	—			2			1			—			3
Natural gas, oil and NGL depreciation, depletion and amortization	—			716			46			—			762
Depreciation and amortization of other assets	—			43			58			(35		)	66
Impairment of natural gas and oil properties	—			3,167			148			—			3,315
Impairments of fixed assets and other	—			8			30			—			38
Net (gains) losses on sales of fixed assets	—			4			3			—			7
Total Operating Expenses	—			5,800			724			(360		)	6,164
INCOME (LOSS) FROM OPERATIONS	—			(3,124		)	(98		)	28			(3,194		)
OTHER INCOME (EXPENSE):
Interest expense	(289		)	(18		)	(21		)	292			(36		)
Losses on investments	—			(23		)	—			—			(23		)
Gains (losses) on sales of investments	—			—			31			—			31
Other income (expense)	286			79			3			(377		)	(9		)
Equity in net earnings (losses) of subsidiary	(2,010		)	(127		)	—			2,137			—
Total Other Income (Expense)	(2,013		)	(89		)	13			2,052			(37		)
INCOME (LOSS) BEFORE INCOME TAXES	(2,013		)	(3,213		)	(85		)	2,080			(3,231		)
INCOME TAX EXPENSE (BENEFIT)	(1		)	(1,204		)	(33		)	(22		)	(1,260		)
NET INCOME (LOSS)	(2,012		)	(2,009		)	(52		)	2,102			(1,971		)
Net income attributable to noncontrolling interests	—			—			—			(41		)	(41		)
NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE	(2,012		)	(2,009		)	(52		)	2,061			(2,012		)
Other comprehensive income (loss)	3			(7		)	(2		)	—			(6		)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE	$	(2,009	)	$	(2,016	)	$	(54	)	$	2,061		$	(2,018	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

NINE MONTHS ENDED SEPTEMBER 30, 2013

($ in millions)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
REVENUES:
Natural gas, oil and NGL	$	—		$	4,962		$	473		$	9		$	5,444
Marketing, gathering and compression	—			6,861			10			—			6,871
Oilfield services	—			—			1,703			(1,053		)	650
Total Revenues	—			11,823			2,186			(1,044		)	12,965
OPERATING EXPENSES:
Natural gas, oil and NGL production	—			838			39			—			877
Production taxes	—			167			6			—			173
Marketing, gathering and compression	—			6,776			5			—			6,781
Oilfield services	—			70			1,362			(889		)	543
General and administrative	—			264			73			(1		)	336
Restructuring and other termination benefits	—			200			3			—			203
Natural gas, oil and NGL depreciation, depletion and amortization	—			1,771			174			—			1,945
Depreciation and amortization of other assets	—			137			218			(121		)	234
Impairment of natural gas and oil properties	—			—			260			(260		)	—
Impairments of fixed assets and other	—			307			36			—			343
Net gains (losses) on sales of fixed assets	—			(291		)	—			1			(290		)
Total Operating Expenses	—			10,239			2,176			(1,270		)	11,145
INCOME (LOSS) FROM OPERATIONS	—			1,584			10			226			1,820
OTHER INCOME (EXPENSE):
Interest expense	(703		)	(70		)	(63		)	672			(164		)
Losses on investments	—			(26		)	—			—			(26		)
Impairment of investment	—			(10		)	(1		)	1			(10		)
Gains (losses) on sales of investments	—			(7		)	—			—			(7		)
Losses on purchases of debt	(70		)	—			—			—			(70		)
Other income (expense)	651			120			7			(760		)	18
Equity in net earnings of subsidiary	916			(221		)	—			(695		)	—
Total Other Income (Expense)	794			(214		)	(57		)	(782		)	(259		)
INCOME (LOSS) BEFORE INCOME TAXES	794			1,370			(47		)	(556		)	1,561
INCOME TAX EXPENSE (BENEFIT)	(46		)	605			(18		)	53			594
NET INCOME (LOSS)	840			765			(29		)	(609		)	967
Net income attributable to noncontrolling interests	—			—			—			(127		)	(127		)
NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE	840			765			(29		)	(736		)	840
Other comprehensive income	2			12			(1		)	—			13
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE	$	842		$	777		$	(30	)	$	(736	)	$	853

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

NINE MONTHS ENDED SEPTEMBER 30, 2012

($ in millions)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
REVENUES:
Natural gas, oil and NGL	$	—		$	4,410		$	209		$	3		$	4,622
Marketing, gathering and compression	—			3,555			155			—			3,710
Oilfield services	—			—			1,440			(994		)	446
Total Revenues	—			7,965			1,804			(991		)	8,778
OPERATING EXPENSES:
Natural gas, oil and NGL production	—			989			16			—			1,005
Production taxes	—			137			4			—			141
Marketing, gathering and compression	—			3,549			82			—			3,631
Oilfield services	—			141			1,029			(849		)	321
General and administrative	—			343			93			—			436
Restructuring and other termination benefits	—			3			1			—			4
Natural gas, oil and NGL depreciation, depletion and amortization	—			1,761			95			—			1,856
Depreciation and amortization of other assets	—			132			205			(104		)	233
Impairment of natural gas and oil properties	—			3,167			148			—			3,315
Impairment of fixed assets and other	—			227			54			—			281
Net (gains) losses on sales of fixed assets	—			2			3			—			5
Total Operating Expenses	—			10,451			1,730			(953		)	11,228
INCOME (LOSS) FROM OPERATIONS	—			(2,486		)	74			(38		)	(2,450		)
OTHER INCOME (EXPENSE):
Interest expense	(682		)	(3		)	(64		)	686			(63		)
Earnings (losses) on investments	—			(142		)	55			—			(87		)
Gains on sales of investments	—			1,030			31			—			1,061
Other income (expense)	667			166			10			(841		)	2
Equity in net earnings (losses) of subsidiary	(1,060		)	(179		)	—			1,239			—
Total Other Income (Expense)	(1,075		)	872			32			1,084			913
INCOME (LOSS) BEFORE INCOME TAXES	(1,075		)	(1,614		)	106			1,046			(1,537		)
INCOME TAX EXPENSE (BENEFIT)	(6		)	(559		)	41			(75		)	(599		)
NET INCOME (LOSS)	(1,069		)	(1,055		)	65			1,121			(938		)
Net income attributable to noncontrolling interests	—			—			—			(131		)	(131		)
NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE	(1,069		)	(1,055		)	65			990			(1,069		)
Other comprehensive income (loss)	3			(25		)	—			—			(22		)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE	$	(1,066	)	$	(1,080	)	$	65		$	990		$	(1,091	)

Schedule of Condensed Cash Flow Statement [Table Text Block]

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2013

($ in millions)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES	$	—		$	3,232		$	362		$	(33	)	$	3,561
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to proved and unproved properties	—			(4,642		)	(639		)	—			(5,281		)
Proceeds from divestitures of proved and unproved properties	—			2,736			53			—			2,789
Additions to other property and equipment	—			(415		)	(224		)	—			(639		)
Other investing activities	—			67			757			260			1,084
Net Cash Used In Investing Activities	—			(2,254		)	(53		)	260			(2,047		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from credit facilities borrowings	—			6,311			825			—			7,136
Payments on credit facilities borrowings	—			(6,310		)	(958		)	—			(7,268		)
Proceeds from issuance of senior notes, net of discount and offering costs	2,274			—			—			—			2,274
Cash paid to purchase debt	(2,116		)	—			—			—			(2,116		)
Proceeds from sales of noncontrolling interests	—			5			—			—			5
Other financing activities	(374		)	(297		)	46			(220		)	(845		)
Intercompany advances, net	954			(687		)	(267		)	—			—
Net Cash Provided By (Used In) Financing Activities	738			(978		)	(354		)	(220		)	(814		)
Net increase (decrease) in cash and cash equivalents	738			—			(45		)	7			700
Cash and cash equivalents, beginning of period	228			—			59			—			287
Cash and cash equivalents, end of period	$	966		$	—		$	14		$	7		$	987

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2012

($ in millions)

	Parent(a)			Guarantor Subsidiaries(a)			Non- Guarantor Subsidiaries			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES	$	—		$	2,779		$	200		$	(1,001	)	$	1,978
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to proved and unproved properties	—			(10,208		)	(130		)	—			(10,338		)
Proceeds from divestitures of proved and unproved properties	—			2,445			—			—			2,445
Additions to other property and equipment	—			(577		)	(1,339		)	—			(1,916		)
Other investing activities	—			3,051			(158		)	(1,238		)	1,655
Net Cash Used In Investing Activities	—			(5,289		)	(1,627		)	(1,238		)	(8,154		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from credit facilities borrowings	—			12,116			1,870			—			13,986
Payments on credit facilities borrowings	—			(12,051		)	(1,563		)	—			(13,614		)
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	—			—			1,056			—			1,056
Other financing activities	(367		)	(154		)	(2,217		)	2,239			(499		)
Intercompany advances, net	(4,618		)	2,599			2,019			—			—
Net Cash Provided By Financing Activities	67			2,510			1,165			2,239			5,981
Change in cash and cash equivalents classified as current assets held for sale	(7		)	—			(7		)	—			(14		)
Net increase in cash and cash equivalents	60			—			(269		)	—			(209		)
Cash and cash equivalents, beginning of period	1			—			350			—			351
Cash and cash equivalents, end of period	$	61		$	—		$	81		$	—		$	142

___________________________________________

(a) We have revised the amounts presented as cash and cash equivalents in the Guarantor Subsidiaries and Parent columns to properly reflect the cash of the Parent of $61 million, which was incorrectly presented as the Guarantor subsidiaries as of September 30, 2012. The impact of this error was not material to any previously issued financial statements.