Derivative and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments Included in Trading Activities [Table Text Block]

The estimated fair values of our natural gas and oil derivative instrument assets (liabilities) as of June 30, 2014 and December 31, 2013 are provided below. 

	June 30, 2014				December 31, 2013
	Volume	Fair Value			Volume	Fair Value
		($ in millions)				($ in millions)
Natural gas (tbtu):
Fixed-price swaps	293	$	(75	)	448	$	(23	)
Three-way collars	335	(27		)	288	(7		)
Collars	22	4			—	—
Call options	193	(195		)	193	(210		)
Call swaptions	—	—			12	—
Basis protection swaps	106	15			68	3
Total natural gas	949	(278		)	1,009	(237		)
Oil (mmbbl):
Fixed-price swaps	18.3	(146		)	25.3	(50		)
Three-way collars	4.4	(12		)	—	—
Call options	38.9	(320		)	42.5	(265		)
Basis protection swaps	0.2	1			0.4	1
Total oil	61.8	(477		)	68.2	(314		)
Total estimated fair value		$	(755	)		$	(551	)

Schedule Of Derivative Instruments In Condensed Consolidated Balance Sheets [Table Text Block]

The following table presents the fair value and location of each classification of derivative instrument included in the condensed consolidated balance sheets as of June 30, 2014 and December 31, 2013 on a gross basis and after same-counterparty netting: 

	June 30, 2014
Balance Sheet Classification	Gross Fair Value			Amounts Netted in Condensed Consolidated Balance Sheet			Net Fair Value Presented in Condensed Consolidated Balance Sheet
	($ in millions)
Commodity Contracts
Short-term derivative asset	$	56		$	(55	)	$	1
Long-term derivative asset	3			(3		)	—
Short-term derivative liability	(469		)	55			(414		)
Long-term derivative liability	(345		)	3			(342		)
Total commodity contracts	(755		)	—			(755		)
Interest Rate Contracts
Short-term derivative liability	(1		)	—			(1		)
Long-term derivative liability	(47		)	—			(47		)
Total interest rate contracts	(48		)	—			(48		)
Foreign Currency Contracts(a)
Long-term derivative asset	6			—			6
Total foreign currency contracts	6			—			6
Total Derivatives	$	(797	)	$	—		$	(797	)

	December 31, 2013
Balance Sheet Classification	Gross Fair Value			Amounts Netted in Condensed Consolidated Balance Sheet			Net Fair Value Presented in Condensed Consolidated Balance Sheet
	($ in millions)
Commodity Contracts
Short-term derivative asset	$	29		$	(29	)	$	—
Long-term derivative asset	11			(9		)	2
Short-term derivative liability	(231		)	29			(202		)
Long-term derivative liability	(362		)	9			(353		)
Total commodity contracts	(553		)	—			(553		)
Interest Rate Contracts
Short-term derivative liability	(6		)	—			(6		)
Long-term derivative liability	(92		)	—			(92		)
Total interest rate contracts	(98		)	—			(98		)
Foreign Currency Contracts(a)
Long-term derivative asset	2			—			2
Total foreign currency contracts	2			—			2
Total Derivatives	$	(649	)	$	—		$	(649	)

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(a) Designated as cash flow hedging instruments.

Schedule of Derivative Instruments [Table Text Block]

The components of natural gas, oil and NGL sales for the Current Quarter, the Prior Quarter, the Current Period and the Prior Period are presented below. 

	Three Months Ended June 30,					Six Months Ended June 30,
	2014			2013		2014			2013
	($ in millions)
Natural gas, oil and NGL sales	$	1,917		$	1,869	$	4,065		$	3,464
Gains (losses) on undesignated natural gas, oil and NGL derivatives	(210		)	535		(574		)	412
Gains (losses) on terminated cash flow hedges	(3		)	2		(20		)	(18		)
Total natural gas, oil and NGL sales	$	1,704		$	2,406	$	3,471		$	3,858

Interest Income And Interest Expense Disclosure [Table Text Block]

The components of interest expense for the Current Quarter, the Prior Quarter, the Current Period and the Prior Period are presented below. 

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	($ in millions)
Interest expense on senior notes	$	184		$	194		$	364		$	380
Interest expense on term loans	7			29			36			58
Amortization of loan discount, issuance costs and other	16			30			35			48
Interest expense on credit facilities	9			11			17			22
Gains on terminated fair value hedges	(1		)	(2		)	(2		)	(3		)
(Gains) losses on undesignated interest rate derivatives	(33		)	52			(51		)	57
Capitalized interest	(155		)	(210		)	(333		)	(438		)
Total interest expense	$	27		$	104		$	66		$	124

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

For the Current Period and the Prior Period, changes in accumulated other comprehensive income (loss) by component, net of tax, are detailed below.

	Net Gains (Losses) on Cash Flow Hedges			Net Gains (Losses) on Investments			Total
	($ in millions)
Balance, December 31, 2013	$	(167	)	$	5		$	(162	)
Other comprehensive income before reclassifications	3			—			3
Amounts reclassified from accumulated other comprehensive income	10			(5		)	5
Net other comprehensive income	13			(5		)	8
Balance, June 30, 2014	$	(154	)	$	—		$	(154	)

	Net Gains (Losses) on Cash Flow Hedges			Net Gains (Losses) on Investments			Total
	($ in millions)
Balance, December 31, 2012	$	(189	)	$	7		$	(182	)
Other comprehensive income before reclassifications	—			(5		)	(5		)
Amounts reclassified from accumulated other comprehensive income	11			6			17
Net other comprehensive income	11			1			12
Balance, June 30, 2013	$	(178	)	$	8		$	(170	)

A reconciliation of the changes in accumulated other comprehensive income (loss) in our condensed consolidated statements of stockholders’ equity related to our cash flow hedges is presented below.

	Three Months Ended June 30,
	2014						2013
	Before  Tax			After  Tax			Before  Tax			After  Tax
	($ in millions)
Balance, beginning of period	$	(247	)	$	(153	)	$	(287	)	$	(178	)
Net change in fair value	1			—			2			1
Gains (losses) reclassified to income	3			(1		)	(1		)	(1		)
Balance, end of period	$	(243	)	$	(154	)	$	(286	)	$	(178	)

	Six Months Ended June 30,
	2014						2013
	Before  Tax			After  Tax			Before  Tax			After  Tax
	($ in millions)
Balance, beginning of period	$	(269	)	$	(167	)	$	(304	)	$	(189	)
Net change in fair value	6			3			—			—
Losses reclassified to income	20			10			18			11
Balance, end of period	$	(243	)	$	(154	)	$	(286	)	$	(178	)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following table provides information for financial assets (liabilities) measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013:

As of June 30, 2014	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
			($ in millions)
Derivative Assets (Liabilities):
Commodity assets	$	—	$	38		$	22		$	60
Commodity liabilities	—		(244		)	(572		)	(816		)
Interest rate liabilities	—		(48		)	—			(48		)
Foreign currency assets	—		6			—			6
Total derivatives	$	—	$	(248	)	$	(550	)	$	(798	)

As of December 31, 2013	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
			($ in millions)
Derivative Assets (Liabilities):
Commodity assets	$	—	$	25		$	15		$	40
Commodity liabilities	—		(100		)	(493		)	(593		)
Interest rate liabilities	—		(98		)	—			(98		)
Foreign currency assets	—		2			—			2
Total derivatives	$	—	$	(171	)	$	(478	)	$	(649	)

The following table provides fair value measurement information for the above-noted financial assets (liabilities) measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013:

As of June 30, 2014	Quoted Prices in Active Markets (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
				($ in millions)
Financial Assets (Liabilities):
Other current assets	$	57		$	—	$	—	$	57
Other current liabilities	(58		)	—		—		(58		)
Total	$	(1	)	$	—	$	—	$	(1	)

As of December 31, 2013	Quoted Prices in Active Markets (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
				($ in millions)
Financial Assets (Liabilities):
Other current assets	$	80		$	—	$	—	$	80
Other current liabilities	(82		)	—		—		(82		)
Total	$	(2	)	$	—	$	—	$	(2	)

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

A summary of the changes in the fair values of Chesapeake’s financial assets (liabilities) classified as Level 3 during the Current Period and the Prior Period is presented below.

	Derivatives
	Commodity			Interest Rate
	($ in millions)
Beginning Balance as of January 1, 2014	$	(478	)	$	—
Total gains (losses) (realized/unrealized):
Included in earnings(a)	(173		)	—
Total purchases, issuances, sales and settlements:
Settlements	105			—
Transfers(b)	(4		)	—
Ending Balance as of June 30, 2014	$	(550	)	$	—
Beginning Balance as of January 1, 2013	$	(1,016	)	$	—
Total gains (losses) (realized/unrealized):
Included in earnings(a)	362			(1		)
Total purchases, issuances, sales and settlements:
Sales	—			1
Settlements	60			—
Ending Balance as of June 30, 2013	$	(594	)	$	—

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(a)	Natural Gas, Oil and NGL Sales					Interest Expense
	2014			2013		2014		2013
	($ in millions)
Total gains (losses) included in earnings for the period	$	(173	)	$	362	$	—	$	(1	)
Change in unrealized gains (losses) related to assets still held at reporting date	$	(133	)	$	353	$	—	$	—

(b) The values related to basis swaps were transferred from Level 3 to Level 2 as a result of our ability to begin using data readily available in the public market to corroborate our estimated fair values.

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

Quantitative Disclosures about Unobservable Inputs for Level 3 Fair Value Measurements

Instrument Type	Unobservable Input	Range	Weighted Average	Fair Value June 30, 2014(a)
				($ in millions)
Oil trades	Oil price volatility curves	9.12% - 18.73%	14.63%	$	(332	)
Natural gas trades	Natural gas price volatility curves	19.54% - 38.70%	24.43%	$	(218	)

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(a) Fair value is based on an estimate derived from option models.