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Derivative and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
The estimated fair values of our oil, natural gas and NGL derivative instrument assets (liabilities) as of December 31, 2016 and 2015 are provided below. 
 
 
December 31, 2016
 
December 31, 2015
 
 
Volume
 
Fair Value
 
Volume
 
Fair Value
 
 
 
 
($ in millions)  
 
 
 
($ in millions)  
Oil (mmbbl):
 
 
 
 
 
 
 
 
Fixed-price swaps
 
23

 
$
(140
)
 
14

 
$
144

Call options
 
5

 
(1
)
 
19

 
(7
)
Total oil
 
28

 
(141
)
 
33

 
137

 
 
 
 
 
 
 
 
 
Natural gas (tbtu):
 
 
 
 
 
 
 
 
Fixed-price swaps
 
719

 
(349
)
 
500

 
229

Collars
 
60

 
(9
)
 
—

 
—

Call options
 
114

 
—

 
295

 
(99
)
Basis protection swaps
 
31

 
(5
)
 
57

 
—

Total natural gas
 
924

 
(363
)
 
852

 
130

 
 
 
 
 
 
 
 
 
NGL (mmgal):
 
 
 
 
 
 
 
 
Fixed-price swaps
 
53

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
Total estimated fair value
 
 
 
$
(504
)
 
 
 
$
267
Schedule Of Derivative Instruments In Condensed Consolidated Balance Sheets
The following table presents the fair value and location of each classification of derivative instrument included in the consolidated balance sheets as of December 31, 2016 and 2015 on a gross basis and after same-counterparty netting: 
Balance Sheet Classification
 
Gross
Fair Value
 
Amounts Netted
in the
Consolidated
Balance Sheets
 
Net Fair Value Presented
in Consolidated
Balance Sheet
 
 
($ in millions)
As of December 31, 2016
 
 
 
 
 
 
Commodity Contracts:
 
 
 
 
 
 
Short-term derivative asset
 
$
1

 
$
(1
)
 
$
—

Short-term derivative liability
 
(490
)
 
1

 
(489
)
Long-term derivative liability
 
(15
)
 
—

 
(15
)
Total commodity contracts
 
(504
)
 
—

 
(504
)
Foreign Currency Contracts:(a)
 
 
 
 
 
 
Short-term derivative liability
 
(73
)
 
—

 
(73
)
Total foreign currency contracts
 
(73
)
 
—

 
(73
)
Total derivatives
 
$
(577
)
 
$
—

 
$
(577
)
 
 
 
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
Commodity Contracts:
 
 
 
 
 
 
Short-term derivative asset
 
$
381

 
$
(66
)
 
$
315

Short-term derivative liability
 
(106
)
 
66

 
(40
)
Long-term derivative liability
 
(8
)
 
—

 
(8
)
Total commodity contracts
 
267

 
—

 
267

Foreign Currency Contracts:(a)
 
 
 
 
 
 
Long-term derivative liability
 
(52
)
 
—

 
(52
)
Total foreign currency contracts
 
(52
)
 
—

 
(52
)
Supply Contracts:
 
 
 
 
 
 
Short-term derivative asset
 
51

 
—

 
51

Long-term derivative asset
 
246

 
—

 
246

Total supply contracts
 
297

 
—

 
297

Total derivatives
 
$
512

 
$
—

 
$
512

____________________________________________
(a)
Designated as cash flow hedging instruments
Schedule of Derivative Instruments, Natural Gas and Oil Sales
The components of marketing, gathering and compression revenues for the years ended December 31, 2016, 2015 and 2014 are presented below.    
 
 
Years Ended December 31,
 
 
2016
 
2015
 
2014
 
 
($ in millions)
Marketing, gathering and compression revenues
 
$
4,881

 
$
7,077

 
$
12,224

Gains (losses) on undesignated supply contract derivatives
 
(297
)
 
296

 
1

Total marketing, gathering and compression revenues
 
$
4,584

 
$
7,373

 
$
12,225

The components of oil, natural gas and NGL revenues for the years ended December 31, 2016, 2015 and 2014 are presented below. 
 
 
Years Ended December 31,
 
 
2016
 
2015
 
2014
 
 
($ in millions)
Oil, natural gas and NGL revenues
 
$
3,866

 
$
4,767

 
$
9,336

Gains (losses) on undesignated oil, natural gas and NGL derivatives
 
(545
)
 
661

 
1,055

Losses on terminated cash flow hedges
 
(33
)
 
(37
)
 
(37
)
Total oil, natural gas and NGL revenues
 
$
3,288

 
$
5,391

 
$
10,354
Schedule of Derivative Instruments, Marketing, Gathering and Compression Sales
The components of marketing, gathering and compression revenues for the years ended December 31, 2016, 2015 and 2014 are presented below.    
 
 
Years Ended December 31,
 
 
2016
 
2015
 
2014
 
 
($ in millions)
Marketing, gathering and compression revenues
 
$
4,881

 
$
7,077

 
$
12,224

Gains (losses) on undesignated supply contract derivatives
 
(297
)
 
296

 
1

Total marketing, gathering and compression revenues
 
$
4,584

 
$
7,373

 
$
12,225

The components of oil, natural gas and NGL revenues for the years ended December 31, 2016, 2015 and 2014 are presented below. 
 
 
Years Ended December 31,
 
 
2016
 
2015
 
2014
 
 
($ in millions)
Oil, natural gas and NGL revenues
 
$
3,866

 
$
4,767

 
$
9,336

Gains (losses) on undesignated oil, natural gas and NGL derivatives
 
(545
)
 
661

 
1,055

Losses on terminated cash flow hedges
 
(33
)
 
(37
)
 
(37
)
Total oil, natural gas and NGL revenues
 
$
3,288

 
$
5,391

 
$
10,354
Interest Income And Interest Expense Disclosure
The components of interest expense for the years ended December 31, 2016, 2015 and 2014 are presented below. 
 
 
Years Ended December 31,
 
 
2016
 
2015
 
2014
 
 
($ in millions)
Interest expense on senior notes
 
$
588

 
$
682

 
$
704

Interest expense on term loan
 
46

 
—

 
36

Amortization of loan discount, issuance costs and other
 
33

 
62

 
42

Amortization of premium associated with troubled debt restructuring
 
(165
)
 
(3
)
 
—

Interest expense on revolving credit facilities
 
35

 
12

 
28

Gains on terminated fair value hedges
 
(2
)
 
(3
)
 
(3
)
(Gains) losses on undesignated interest rate derivatives
 
12

 
(9
)
 
(81
)
Capitalized interest
 
(251
)
 
(424
)
 
(637
)
Total interest expense
 
$
296

 
$
317

 
$
89
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
A reconciliation of the changes in accumulated other comprehensive income (loss) in our consolidated statements of stockholders’ equity related to our cash flow hedges is presented below. 
 
 
Years Ended December 31,
 
 
2016
 
2015
 
2014
 
 
Before 
Tax  
 
After 
Tax  
 
Before 
Tax  
 
After 
Tax  
 
Before 
Tax  
 
After 
Tax  
 
 
($ in millions)
Balance, beginning of period
 
$
(160
)
 
$
(99
)
 
$
(231
)
 
$
(143
)
 
$
(269
)
 
$
(167
)
Net change in fair value
 
(27
)
 
(13
)
 
32

 
20

 
1

 
1

Losses reclassified to income
 
34

 
16

 
39

 
24

 
37

 
23

Balance, end of period
 
$
(153
)
 
$
(96
)
 
$
(160
)
 
$
(99
)
 
$
(231
)
 
$
(143
)
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 December 31, 2016 and 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 December 31, 2016
 
 
 
 
 
 
 
 
Derivative Assets (Liabilities):
 
 
 
 
 
 
 
 
Commodity assets
 
$
—

 
$
1

 
$
—

 
$
1

Commodity liabilities
 
—

 
(495
)
 
(10
)
 
(505
)
Foreign currency liabilities
 
—


(73
)
 
—

 
(73
)
Total derivatives
 
$
—

 
$
(567
)
 
$
(10
)
 
$
(577
)
 
 
 
 
 
 
 
 
 
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 2016 and 2015 is presented below. 
 
 
Commodity
Derivatives
 
Supply
Contracts
 
 
($ in millions)
Beginning balance as of December 31, 2015
 
$
(91
)
 
$
297

Total gains (losses) (realized/unrealized):
 
 
 
 
Included in earnings(a)
 
6

 
(118
)
Total purchases, issuances, sales and settlements:
 
 
 
 
Settlements
 
75

 
(33
)
Sales
 
—

 
(146
)
Ending balance as of December 31, 2016
 
$
(10
)
 
$
—

 
 
 
 
 
Beginning balance as of December 31, 2014
 
$
(54
)
 
$
1

Total gains (losses) (realized/unrealized):
 
 
 
 
Included in earnings(a)
 
100

 
316

Total purchases, issuances, sales and settlements:
 
 
 
 
Settlements
 
(137
)
 
(20
)
Ending balance as of December 31, 2015
 
$
(91
)
 
$
297

___________________________________________
(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
 
$
6

 
$
100

 
$
(118
)
 
$
316

Change in unrealized gains (losses) related to assets still held at reporting date
 
$
(7
)
 
$
43

 
$
—

 
$
296

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 December 31, 2016 and 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 December 31, 2016
 
 
 
 
 
 
 
 
Financial Assets (Liabilities):
 
 
 
 
 
 
 
 
Other current assets
 
$
49

 
$
—

 
$
—

 
$
49

Other current liabilities
 
(51
)
 
—

 
—

 
(51
)
Total
 
$
(2
)
 
$
—

 
$
—

 
$
(2
)
 
 
 
 
 
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
 
 
Financial Assets (Liabilities):
 
 
 
 
 
 
 
 
Other current assets
 
$
50

 
$
—

 
$
—

 
$
50

Other current liabilities
 
(51
)
 
—

 
—

 
(51
)
Total
 
$
(1
)
 
$
—

 
$
—

 
$
(1
)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The following table provides information for financial assets (liabilities) measured at fair value on a recurring basis as of December 31, 2016 and 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 December 31, 2016
 
 
 
 
 
 
 
 
Derivative Assets (Liabilities):
 
 
 
 
 
 
 
 
Commodity assets
 
$
—

 
$
1

 
$
—

 
$
1

Commodity liabilities
 
—

 
(495
)
 
(10
)
 
(505
)
Foreign currency liabilities
 
—


(73
)
 
—

 
(73
)
Total derivatives
 
$
—

 
$
(567
)
 
$
(10
)
 
$
(577
)
 
 
 
 
 
 
 
 
 
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 2016 and 2015 is presented below. 
 
 
Commodity
Derivatives
 
Supply
Contracts
 
 
($ in millions)
Beginning balance as of December 31, 2015
 
$
(91
)
 
$
297

Total gains (losses) (realized/unrealized):
 
 
 
 
Included in earnings(a)
 
6

 
(118
)
Total purchases, issuances, sales and settlements:
 
 
 
 
Settlements
 
75

 
(33
)
Sales
 
—

 
(146
)
Ending balance as of December 31, 2016
 
$
(10
)
 
$
—

 
 
 
 
 
Beginning balance as of December 31, 2014
 
$
(54
)
 
$
1

Total gains (losses) (realized/unrealized):
 
 
 
 
Included in earnings(a)
 
100

 
316

Total purchases, issuances, sales and settlements:
 
 
 
 
Settlements
 
(137
)
 
(20
)
Ending balance as of December 31, 2015
 
$
(91
)
 
$
297

___________________________________________
(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
 
$
6

 
$
100

 
$
(118
)
 
$
316

Change in unrealized gains (losses) related to assets still held at reporting date
 
$
(7
)
 
$
43

 
$
—

 
$
296
Fair Value Inputs, Assets, Quantitative Information
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 December 31, 2016:
Instrument
Type
 
Unobservable
Input
 
Range
 
Weighted
Average
 
Fair Value
December 31, 2016
 
 
 
 
 
 
 
 
($ in millions)
Oil trades
 
Oil price volatility curves
 
17.32% - 25.95%
 
23.95%
 
$
(1
)
Natural gas trades
 
Natural gas price volatility
curves
 
19.72% – 68.72%
 
30.71%
 
$
(9
)