Investments

A summary of our investments, including our approximate ownership percentage as of December 31, 2013 and 2012, is presented below.



		Approximate Ownership %		Carrying Value
	Accounting	December 31,		December 31,
	Method	2013	2012	2013		2012
				($ in millions)
FTS International, Inc.	Equity	30%	30%	$	138	$	298
Chaparral Energy, Inc.	Equity	20%	20%	143		141
Sundrop Fuels, Inc.	Equity	56%	50%	135		111
Clean Energy Fuels Corp. (common stock)	Fair Value	—%	1%	—		12
Clean Energy Fuels Corp. (convertible notes)	Cost	—%	—%	—		100
Gastar Exploration Ltd.	Fair Value	—%	10%	—		8
Other	—	—%	—%	61		58
Total investments				$	477	$	728

FTS International, Inc. FTS International, Inc. (FTS), based in Fort Worth, Texas, is a privately held company which, through its subsidiaries, provides hydraulic fracturing and other services to oil and gas companies. In 2013, we recorded negative equity method and other adjustments, prior to intercompany profit eliminations, of $177 million for our share of FTS’s net loss and recorded an accretion adjustment of $14 million related to the excess of our underlying equity in net assets of FTS over our carrying value. The loss in 2013 primarily represents our proportionate share, net of tax, of an impairment recorded by FTS related to its non-depreciable assets. Additionally, in 2013, we purchased FTS common stock offered to existing stockholders for $3 million.

The carrying value of our investment in FTS was less than our underlying equity in net assets by approximately $54 million as of December 31, 2013, of which $14 million was attributed to non-depreciable assets. During 2013, the value attributed to non-depreciable assets decreased by $282 million, which primarily represents our proportionate share, net of tax, of an impairment recorded by FTS related to its non-depreciable assets noted above. The value not attributed to non-depreciable assets is being accreted over the estimated useful lives of the underlying assets.

Chaparral Energy, Inc. Chaparral Energy, Inc. (Chaparral), based in Oklahoma City, Oklahoma, is a private independent oil and natural gas company engaged in the production, acquisition and exploitation of oil and natural gas properties. In 2013, we recorded positive equity method adjustments of $10 million related to our share of Chaparral’s net income, a $5 million charge related to our share of its other comprehensive income, and an amortization adjustment of $3 million related to our carrying value in excess of our underlying equity in net assets. The carrying value of our investment in Chaparral was in excess of our underlying equity in net assets by approximately $48 million as of December 31, 2013. This excess was attributed to the natural gas and oil reserves held by Chaparral and was being amortized over the estimated life of these reserves based on a unit of production rate. Subsequent to December 31, 2013, we sold our investment in Chaparral for cash proceeds of $215 million.

Sundrop Fuels, Inc. Sundrop Fuels, Inc. (Sundrop), is a privately held cellulosic biofuels company based in Longmont, Colorado that is constructing a nonfood biomass-based “green gasoline” plant. In 2013, we recorded a $16 million charge related to our share of Sundrop’s net loss. Additionally, in 2013, we funded our final investment of $40 million upon Sundrop’s achievement of certain operational milestones. The carrying value of our investment in Sundrop was in excess of our underlying equity in net assets by approximately $62 million as of December 31, 2013. This excess will be amortized over the life of the plant, once it is placed into service.

Sold Investments

Clean Energy Fuels Corp. In 2013, we sold all of our shares of Clean Energy Fuels Corp. (NASDAQ:CLNE) (Clean Energy) common stock for cash proceeds of approximately $13 million. We recorded a $3 million gain related to the sale. In 2013, we sold our $100 million investment in Clean Energy convertible notes for cash proceeds of $85 million. The buyer also assumed our commitment to purchase the third and final $50 million tranche of Clean Energy convertible notes. We recorded a $15 million loss related to this sale.

Gastar Exploration Ltd. In 2013, we sold our investment in Gastar Exploration Ltd. (NYSE MKT:GST) for cash proceeds of $10 million.

Chesapeake Midstream Partners, L.P. In 2012, we sold all of our common and subordinated units representing limited partner interests in Chesapeake Midstream Partners, L.P., now named Access Midstream Partners, L.P. (NYSE:ACMP), and all of our limited liability company interests in the sole member of its general partner to funds affiliated with Global Infrastructure Partners for cash proceeds of $2.0 billion. We recorded a $1.032 billion gain associated with the transaction, including the recognition of a $13 million deferred gain related to equipment previously sold to ACMP. During 2012, we recorded positive equity method adjustments of $46 million for our share of ACMP’s income, received cash distributions of $56 million from ACMP and recorded accretion adjustments of $4 million related to our share of equity in excess of cost.

Glass Mountain Pipeline, LLC. In 2012, our wholly owned midstream subsidiary, Chesapeake Midstream Development, L.L.C. (CMD), entered into an agreement with two other parties to form Glass Mountain Pipeline, LLC to construct a 210-mile pipeline in western and north central Oklahoma in which CMD had a 50% ownership interest. In 2012, CMD sold its interest for $99 million and recorded a gain of $62 million.

Other. In 2013, we sold an equity investment for cash proceeds of $6 million and recorded a $5 million gain associated with the transaction.

The table below presents summarized financial information for our significant equity method investments, including FTS and Sundrop. The investee financial information reflects the most current financial information available to investors and includes lags in financial reporting of up to one quarter.



	Years Ended December 31,
	2013			2012			2011
	($ in millions)
Current assets	$	521		$	892		$	732
Noncurrent assets	$	1,859		$	4,225		$	5,175
Current liabilities	$	192		$	207		$	277
Noncurrent liabilities	$	1,468		$	1,726		$	1,916
Gross revenue	$	1,807		$	2,190		$	2,209
Operating expense	$	3,926		$	3,089		$	1,630
Net income (loss)	$	(2,459	)	$	(968	)	$	494