Segment Information (Notes)

12 Months Ended

Dec. 31, 2016

Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]

Segment Information Disclosure

Major Customers and Segment Information

Sales to BP PLC constituted approximately 10% and 14% of our total revenues (before the effects of hedging) for the years ended December 31, 2016 and 2015, respectively. Sales to Exxon Mobil Corporation constituted approximately 12% of our total revenues (before the effects of hedging) for the year ended December 31, 2014.

As of December 31, 2016, we have two reportable operating segments, each of which is managed separately because of the nature of its operations. The exploration and production operating segment is responsible for finding and producing oil, natural gas and NGL. The marketing, gathering and compression operating segment is responsible for marketing, gathering and compression of oil, natural gas and NGL. In addition, prior to the spin-off of our oilfield services business in June 2014, our former oilfield services operating segment was responsible for drilling, oilfield trucking, oilfield rentals, hydraulic fracturing and other oilfield services for both Chesapeake-operated wells and wells operated by third parties. Our former oilfield services segment’s historical financial results for periods prior to the spin-off continue to be included in our historical financial results as a component of continuing operations, as reflected in the table below.

Management evaluates the performance of our segments based upon income (loss) before income taxes. Revenues from the sale of oil, natural gas and NGL related to Chesapeake’s ownership interests by our marketing, gathering and compression operating segment are reflected as revenues within our exploration and production operating segment. These amounts totaled $3.750 billion, $4.372 billion and $8.565 billion for the years ended December 31, 2016, 2015 and 2014, respectively. Revenues generated by our former oilfield services operating segment for work performed for Chesapeake’s exploration and production operating segment were reclassified to the full cost pool based on Chesapeake’s ownership interest. Revenues reclassified totaled $544 million for year ended December 31, 2014. No income was recognized in our consolidated statements of operations related to oilfield services performed for Chesapeake-operated wells.

During the 2016 first quarter, we changed the structure of our internal organization to include certain assets in our Exploration and Production reportable segment instead of our Other segment. Accordingly, this change has been reflected through retroactive revision of the segment information as of December 31, 2015 and 2014, as shown in the tables below.

The following table presents selected financial information for Chesapeake’s operating segments:

	Exploration and Production			Marketing, Gathering and Compression			Former Oilfield Services		Other			Intercompany Eliminations			Consolidated  Total
	($ in millions)
Year Ended December 31, 2016
Revenues	$	3,288		$	8,334		$	—	$	—		$	(3,750	)	$	7,872
Intersegment revenues	—			(3,750		)	—		—			3,750			—
Total revenues	$	3,288		$	4,584		$	—	$	—		$	—		$	7,872
Unrealized losses on commodity derivatives	$	819		$	—		$	—	$	—		$	—		$	819
Unrealized losses on marketing derivatives	$	—		$	297		$	—	$	—		$	—		$	297
Oil, natural gas, NGL and other depreciation, depletion and amortization	$	1,024		$	45		$	—	$	38		$	—		$	1,107
Impairment of oil and natural gas properties	$	2,564		$	—		$	—	$	—		$	—		$	2,564
Impairments of fixed assets and other	$	387		$	220		$	—	$	231		$	—		$	838
Net gain (loss) on sales of fixed assets	$	(4	)	$	(7	)	$	—	$	(1	)	$	—		$	(12	)
Interest expense	$	(303	)	$	—		$	—	$	7		$	—		$	(296	)
Losses on investments	$	—		$	—		$	—	$	(8	)	$	—		$	(8	)
Impairments of investments	$	—		$	—		$	—	$	(119	)	$	—		$	(119	)
Gains on purchases or exchanges of debt	$	236		$	—		$	—	$	—		$	—		$	236
Income (Loss) Before Income Taxes	$	(4,099	)	$	(112	)	$	—	$	(378	)	$	—		$	(4,589	)
Total Assets	$	11,249		$	1,118		$	—	$	1,059		$	(398	)	$	13,028
Capital Expenditures	$	1,439		$	7		$	—	$	—		$	—		$	1,446

	Exploration and Production			Marketing, Gathering and Compression			Former Oilfield Services		Other			Intercompany Eliminations			Consolidated  Total
	($ in millions)
Year Ended December 31, 2015
Revenues	$	5,391		$	11,745		$	—	$	—		$	(4,372	)	$	12,764
Intersegment revenues	—			(4,372		)	—		—			4,372			—
Total revenues	$	5,391		$	7,373		$	—	$	—		$	—		$	12,764
Unrealized losses on commodity derivatives	$	693		$	—		$	—	$	—		$	—		$	693
Unrealized gains on marketing derivatives	$	—		$	(295	)	$	—	$	—		$	—		$	(295	)
Oil, natural gas, NGL and other depreciation, depletion and amortization	$	2,170		$	20		$	—	$	39		$	—		$	2,229
Impairment of oil and natural gas properties	$	18,238		$	—		$	—	$	—		$	—		$	18,238
Impairments of fixed assets and other	$	126		$	68		$	—	$	—		$	—		$	194
Net gain (loss) on sales of fixed assets	$	1		$	1		$	—	$	2		$	—		$	4
Interest expense	$	(925	)	$	(4	)	$	—	$	6		$	606		$	(317	)
Losses on investments	$	(3	)	$	—		$	—	$	(93	)	$	—		$	(96	)
Impairments of investments	$	—		$	—		$	—	$	(53	)	$	—		$	(53	)
Gains on purchases or exchanges of debt	$	279		$	—		$	—	$	—		$	—		$	279
							—
Income (Loss) Before Income Taxes	$	(19,619	)	$	117		$	—	$	(127	)	$	531		$	(19,098	)
Total Assets (as previously reported)	$	11,776		$	1,524		$	—	$	4,325		$	(311	)	$	17,314
Total Assets (as revised)	$	14,610		$	1,524		$	—	$	1,491		$	(311	)	$	17,314
Capital Expenditures	$	3,562		$	42		$	—	$	10		$	—		$	3,614

	Exploration and Production			Marketing, Gathering and Compression			Former Oilfield Services			Other			Intercompany Eliminations			Consolidated  Total
	($ in millions)
Year Ended December 31, 2014
Revenues	$	10,354		$	20,790		$	1,060		$	30		$	(9,109	)	$	23,125
Intersegment revenues	—			(8,565		)	(544		)	—			9,109			—
Total revenues	$	10,354		$	12,225		$	516		$	30		$	—		$	23,125
Unrealized losses on commodity derivatives	$	(1,394	)	$	—		$	—		$	—		$	—		$	(1,394	)
Unrealized gains on marketing derivatives	$	—		$	(3	)	$	—		$	—		$	—		$	(3	)
Oil, natural gas, NGL and other depreciation, depletion and amortization	$	2,756		$	38		$	145		$	42		$	(66	)	$	2,915
Impairments of fixed assets and other	$	22		$	24		$	23		$	19		$	—		$	88
Net gain (loss) on sales of fixed assets	$	(2	)	$	(187	)	$	(8	)	$	(2	)	$	—		$	(199	)
Interest expense	$	(709	)	$	(21	)	$	(42	)	$	3		$	680		$	(89	)
Losses on investments	$	2		$	—		$	(1	)	$	(76	)	$	—		$	(75	)
Impairments of investments	$	—		$	—		$	(5	)	$	—		$	—		$	(5	)
Net loss on sales of investments	$	(6	)	$	—		$	—		$	73		$	—		$	67
Gains on purchases or exchanges of debt	$	(197	)	$	—		$	—		$	—		$	—		$	(197	)
Income (Loss) Before Income Taxes	$	2,874		$	326		$	(16	)	$	(30	)	$	46		$	3,200
Total Assets (as previously reported)	$	35,285		$	1,978		$	—		$	4,283		$	(891	)	$	40,655
Total Assets (as revised)	$	38,012		$	1,978		$	—		$	1,556		$	(891	)	$	40,655
Capital Expenditures	$	6,173		$	298		$	158		$	38		$	—		$	6,667