Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table provides information for financial assets (liabilities) measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015:

	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, 2016
Derivative Assets (Liabilities):
Commodity assets	$	—	$	325		$	20		$	345
Commodity liabilities	—		(36		)	(68		)	(104		)
Foreign currency liabilities	—		(43		)	—			(43		)
Supply contract assets	—		—			317			317
Total derivatives	$	—	$	246		$	269		$	515
As of December 31, 2015
Derivative Assets (Liabilities):
Commodity assets	$	—	$	372		$	9		$	381
Commodity liabilities	—		(14		)	(100		)	(114		)
Foreign currency liabilities	—		(52		)	—			(52		)
Supply contract assets	—		—			297			297
Total derivatives	$	—	$	306		$	206		$	512

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			Supply Contracts
	($ in millions)
Beginning balance as of December 31, 2015	$	(91	)	$	297
Total gains (losses) (unrealized):
Included in earnings(a)	25			33
Total purchases, issuances, sales and settlements:
Settlements	18			(13		)
Ending balance as of March 31, 2016	$	(48	)	$	317
Beginning balance as of December 31, 2014	$	(54	)	$	1
Total gains (losses) (unrealized):
Included in earnings(a)	78			—
Total purchases, issuances, sales and settlements:
Settlements	(93		)	—
Transfers(b)	—			—
Ending balance as of March 31, 2015	$	(69	)	$	1

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(a)	Oil, Natural Gas and NGL Sales				Marketing, Gathering and Compression Revenue
	2016		2015		2016		2015
	($ in millions)
Total gains (losses) included in earnings for the period	$	25	$	78	$	20	$	—
Change in unrealized gains (losses) related to assets still held at reporting date	$	21	$	74	$	20	$	—

(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.

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, 2016 and December 31, 2015:

	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, 2016
Financial Assets (Liabilities):
Other current assets	$	48		$	—	$	—	$	48
Other current liabilities	(50		)	—		—		(50		)
Total	$	(2	)	$	—	$	—	$	(2	)
As of December 31, 2015
Financial Assets (Liabilities):
Other current assets	$	50		$	—	$	—	$	50
Other current liabilities	(51		)	—		—		(51		)
Total	$	(1	)	$	—	$	—	$	(1	)