Derivative and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

The estimated fair values of our oil and natural gas derivative instrument assets (liabilities) as of March 31, 2015 and December 31, 2014 are provided below. 

	March 31, 2015				December 31, 2014
	Volume	Fair Value			Volume	Fair Value
		($ in millions)				($ in millions)
Oil (mmbbl):
Fixed-price swaps	8.4	$	363		12.5	$	471
Three-way collars	3.3	32			4.4	40
Call options	34.3	(30		)	35.8	(89		)
Total oil	46.0	$	365		52.7	$	422
Natural gas (tbtu):
Fixed-price swaps	195	$	212		275	$	281
Three-way collars	106	77			207	165
Call options	193	(148		)	193	(170		)
Basis protection swaps	56	(6		)	60	23
Total natural gas	550	$	135		735	$	299
Total estimated fair value		$	500			$	721

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 March 31, 2015 and December 31, 2014 on a gross basis and after same-counterparty netting: 

Balance Sheet Classification	Gross Fair Value			Amounts Netted in Condensed Consolidated Balance Sheet			Net Fair Value Presented in Condensed Consolidated Balance Sheet
	($ in millions)
As of March 31, 2015
Commodity Contracts:
Short-term derivative asset	$	688		$	(76	)	$	612
Short-term derivative liability	(99		)	76			(23		)
Long-term derivative liability	(88		)	—			(88		)
Total commodity contracts	501			—			501
Interest Rate Contracts:
Short-term derivative liability	(3		)	—			(3		)
Total interest rate contracts	(3		)	—			(3		)
Foreign Currency Contracts:(a)
Long-term derivative liability	(103		)	—			(103		)
Total foreign currency contracts	(103		)	—			(103		)
Total derivatives	$	395		$	—		$	395
As of December 31, 2014
Commodity Contracts:
Short-term derivative asset	$	974		$	(95	)	$	879
Long-term derivative asset	16			(10		)	6
Short-term derivative liability	(105		)	95			(10		)
Long-term derivative liability	(163		)	10			(153		)
Total commodity contracts	722			—			722
Interest Rate Contracts:
Short-term derivative liability	(5		)	—			(5		)
Long-term derivative liability	(12		)	—			(12		)
Total interest rate contracts	(17		)	—			(17		)
Foreign Currency Contracts:(a)
Long-term derivative liability	(53		)	—			(53		)
Total foreign currency contracts	(53		)	—			(53		)
Total derivatives	$	652		$	—		$	652

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(a) Designated as cash flow hedging instruments.

Schedule of Derivative Instruments [Table Text Block]

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

	Three Months Ended March 31,
	2015			2014
	($ in millions)
Oil, natural gas and NGL sales	$	924		$	2,148
Gains (losses) on undesignated oil and natural gas derivatives	178			(365		)
Losses on terminated cash flow hedges	(17		)	(17		)
Total oil, natural gas and NGL sales	$	1,085		$	1,766

Interest Income And Interest Expense Disclosure [Table Text Block]

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

	Three Months Ended March 31,
	2015			2014
	($ in millions)
Interest expense on senior notes	$	171		$	180
Interest expense on term loans	—			29
Amortization of loan discount, issuance costs and other	11			19
Interest expense on credit facilities	3			8
Gains on terminated fair value hedges	(1		)	(1		)
Gains on undesignated interest rate derivatives	(10		)	(18		)
Capitalized interest	(123		)	(178		)
Total interest expense	$	51		$	39

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block]

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 March 31,
	2015						2014
	Before  Tax			After  Tax			Before  Tax			After  Tax
	($ in millions)
Balance, beginning of period	$	(231	)	$	(143	)	$	(269	)	$	(167	)
Net change in fair value	(2		)	(1		)	4			3
Losses reclassified to income	17			10			18			11
Balance, end of period	$	(216	)	$	(134	)	$	(247	)	$	(153	)

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 March 31, 2015 and December 31, 2014:

	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
			($ in millions)
As of March 31, 2015
Derivative Assets (Liabilities):
Commodity assets	$	—	$	579		$	109		$	688
Commodity liabilities	—		(9		)	(178		)	(187		)
Interest rate liabilities	—		(3		)	—			(3		)
Foreign currency liabilities	—		(103		)	—			(103		)
Total derivatives	$	—	$	464		$	(69	)	$	395
As of December 31, 2014
Derivative Assets (Liabilities):
Commodity assets	$	—	$	785		$	205		$	990
Commodity liabilities	—		(9		)	(259		)	(268		)
Interest rate liabilities	—		(17		)	—			(17		)
Foreign currency liabilities	—		(53		)	—			(53		)
Total derivatives	$	—	$	706		$	(54	)	$	652

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 March 31, 2015 and December 31, 2014:

	Quoted Prices in Active Markets (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
				($ in millions)
As of March 31, 2015
Financial Assets (Liabilities):
Other current assets	$	60		$	—	$	—	$	60
Other current liabilities	(63		)	—		—		(63		)
Total	$	(3	)	$	—	$	—	$	(3	)
As of December 31, 2014
Financial Assets (Liabilities):
Other current assets	$	57		$	—	$	—	$	57
Other current liabilities	(58		)	—		—		(58		)
Total	$	(1	)	$	—	$	—	$	(1	)

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 Quarter and the Prior Quarter is presented below.

	Commodity
	Derivatives
	($ in millions)
Beginning balance as of January 1, 2015	$	(54	)
Total gains (losses) (realized/unrealized):
Included in earnings(a)	78
Total purchases, issuances, sales and settlements:
Settlements	(93		)
Ending balance as of March 31, 2015	$	(69	)
Beginning balance as of January 1, 2014	$	(478	)
Total gains (losses) (realized/unrealized):
Included in earnings(a)	(80		)
Total purchases, issuances, sales and settlements:
Settlements	55
Transfers(b)	(4		)
Ending balance as of March 31, 2014	$	(507	)

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(a)	Oil, Natural Gas and NGL Sales
	2015		2014
	($ in millions)
Total gains (losses) included in earnings for the period	$	78	$	(80	)
Change in unrealized gains (losses) related to assets still held at reporting date	$	74	$	(57	)

(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]

The following table presents quantitative information about Level 3 inputs used in the fair value measurement of our commodity derivative contracts at fair value as of March 31, 2015:

Instrument Type	Unobservable Input	Range	Weighted Average	Fair Value March 31, 2015(a)
				($ in millions)
Oil trades	Oil price volatility curves	20.48% – 37.72%	29.46%	$	2
Natural gas trades	Natural gas price volatility curves	18.96% – 53.74%	29.73%	$	(71	)

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