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Derivative and Hedging Activities (Tables)
 9 Months Ended
Sep. 30, 2017
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 September 30, 2017 and December 31, 2016 are provided below. 
 
 
September 30, 2017
 
December 31, 2016
 
 
Volume
 
Fair Value
 
Volume
 
Fair Value
 
 
 
 
($ in millions)  
 
 
 
($ in millions)  
Oil (mmbbl):
 
 
 
 
 
 
 
 
Fixed-price swaps
 
18

 
$
(17
)
 
23

 
$
(140
)
Three Way Collars
 
2

 
(2
)
 
—

 
—

Call options
 
1

 
—

 
5

 
(1
)
Call swaptions
 
2

 
(7
)
 
—

 
—

Basis protection swaps
 
3

 
(1
)
 
—

 
—

Total oil
 
26

 
(27
)
 
28

 
(141
)
Natural gas (tbtu):
 
 
 
 
 
 
 
 
Fixed-price swaps
 
696

 
38

 
719

 
(349
)
Collars
 
71

 
8

 
60

 
(9
)
Call options
 
121

 
(7
)
 
114

 
—

Basis protection swaps
 
26

 
(1
)
 
31

 
(5
)
Total natural gas
 
914

 
38

 
924

 
(363
)
NGL (mmgal):
 
 
 
 
 
 
 
 
Fixed-price swaps
 
15

 
(2
)
 
53

 
—

Total estimated fair value
 
 
 
$
9

 
 
 
$
(504
)
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 condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016 on a gross basis and after same-counterparty netting: 
Balance Sheet Classification
 
Gross
Fair Value
 
Amounts Netted
in the
Condensed
Consolidated
Balance Sheets
 
Net Fair Value
Presented in the
Condensed
Consolidated
Balance Sheet
 
 
($ in millions)
As of September 30, 2017
 
 
 
 
 
 
Commodity Contracts:
 
 
 
 
 
 
Short-term derivative asset
 
$
57

 
$
(29
)
 
$
28

Short-term derivative liability
 
(37
)
 
29

 
(8
)
Long-term derivative asset
 
1

 
(1
)
 
—

Long-term derivative liability
 
(11
)
 
—

 
(11
)
Total commodity contracts
 
10

 
(1
)
 
9

Total derivatives
 
$
10

 
$
(1
)
 
$
9

 
 
 
 
 
 
 
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
)
____________________________________________
(a)
Designated as cash flow hedging instruments
Schedule of Derivative Instruments, Oil, Natural Gas and NGL Revenues
The components of marketing, gathering and compression revenues for the Current Quarter, the Prior Quarter, the Current Period and the Prior Period are presented below.    
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2017
 
2016
 
2017
 
2016
 
 
($ in millions)
Marketing, gathering and compression revenues
 
$
964

 
$
1,379

 
$
3,250

 
$
3,538

Losses on undesignated supply contract derivatives
 
—

 
(280
)
 
—

 
(297
)
Total marketing, gathering and compression revenues
 
$
964

 
$
1,099

 
$
3,250

 
$
3,241

The components of oil, natural gas and NGL revenues for the Current Quarter, the Prior Quarter, the Current Period and the Prior Period are presented below. 
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2017
 
2016
 
2017
 
2016
 
 
($ in millions)
Oil, natural gas and NGL revenues
 
$
1,049

 
$
1,048

 
$
3,275

 
$
2,744

Gains (losses) on undesignated oil, natural gas
and NGL derivatives
 
(62
)
 
136

 
477

 
(110
)
Losses on terminated cash flow hedges
 
(8
)
 
(7
)
 
(25
)
 
(24
)
Total oil, natural gas and NGL revenues
 
$
979

 
$
1,177

 
$
3,727

 
$
2,610
Schedule of Derivative Instruments, Marketing, Gathering and Compression Revenues
The components of marketing, gathering and compression revenues for the Current Quarter, the Prior Quarter, the Current Period and the Prior Period are presented below.    
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2017
 
2016
 
2017
 
2016
 
 
($ in millions)
Marketing, gathering and compression revenues
 
$
964

 
$
1,379

 
$
3,250

 
$
3,538

Losses on undesignated supply contract derivatives
 
—

 
(280
)
 
—

 
(297
)
Total marketing, gathering and compression revenues
 
$
964

 
$
1,099

 
$
3,250

 
$
3,241

The components of oil, natural gas and NGL revenues for the Current Quarter, the Prior Quarter, the Current Period and the Prior Period are presented below. 
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2017
 
2016
 
2017
 
2016
 
 
($ in millions)
Oil, natural gas and NGL revenues
 
$
1,049

 
$
1,048

 
$
3,275

 
$
2,744

Gains (losses) on undesignated oil, natural gas
and NGL derivatives
 
(62
)
 
136

 
477

 
(110
)
Losses on terminated cash flow hedges
 
(8
)
 
(7
)
 
(25
)
 
(24
)
Total oil, natural gas and NGL revenues
 
$
979

 
$
1,177

 
$
3,727

 
$
2,610
Interest Income And Interest Expense Disclosure
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
September 30,
 
Nine Months Ended
September 30,
 
 
2017
 
2016
 
2017
 
2016
 
 
($ in millions)
Interest expense on senior notes
 
$
135

 
$
141

 
$
407

 
$
446

Interest expense on term loan
 
34

 
14

 
98

 
14

Amortization of loan discount, issuance costs and other
 
13

 
9

 
28

 
27

Amortization of premium associated with troubled debt restructuring
 
(29
)
 
(41
)
 
(112
)
 
(124
)
Interest expense on revolving credit facility
 
11

 
10

 
28

 
27

Gains on terminated fair value hedges
 
(1
)
 
(1
)
 
(1
)
 
(2
)
Losses on undesignated interest rate derivatives
 
—

 
—

 
1

 
—

Capitalized interest
 
(49
)
 
(59
)
 
(147
)
 
(191
)
Total interest expense
 
$
114

 
$
73

 
$
302

 
$
197
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 condensed consolidated statements of stockholders’ equity related to our cash flow hedges is presented below. 
 
 
Three Months Ended September 30,
 
 
2017
 
2016
 
 
Before 
Tax  
 
After 
Tax  
 
Before 
Tax  
 
After 
Tax  
 
 
($ in millions)
Balance, beginning of period
 
$
(132
)
 
$
(75
)
 
$
(163
)
 
$
(104
)
Net change in fair value
 
—

 
—

 
(4
)
 
(4
)
Losses reclassified to income
 
8

 
8

 
7

 
7

Balance, end of period
 
$
(124
)
 
$
(67
)
 
$
(160
)
 
$
(101
)
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30,
 
 
2017
 
2016
 
 
Before 
Tax  
 
After 
Tax  
 
Before 
Tax  
 
After 
Tax  
 
 
($ in millions)
Balance, beginning of period
 
$
(153
)
 
$
(96
)
 
$
(160
)
 
$
(99
)
Net change in fair value
 
4

 
4

 
(23
)
 
(23
)
Losses reclassified to income
 
25

 
25

 
23

 
21

Balance, end of period
 
$
(124
)
 
$
(67
)
 
$
(160
)
 
$
(101
)
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 September 30, 2017 and December 31, 2016: 
 
 
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 September 30, 2017
 
 
 
 
 
 
 
 
Derivative Assets (Liabilities):
 
 
 
 
 
 
 
 
Commodity assets
 
$
—

 
$
55

 
$
2

 
$
57

Commodity liabilities
 
—

 
(38
)
 
(10
)
 
(48
)
Total derivatives
 
$
—

 
$
17

 
$
(8
)
 
$
9

 
 
 
 
 
 
 
 
 
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
)


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. 
 
 
Commodity
Derivatives
 
Supply
Contracts
 
 
($ in millions)
Balance, as of January 1, 2017
 
$
(10
)
 
$
—

Total gains (losses) (realized/unrealized):
 
 
 
 
Included in earnings(a)
 
1

 
—

Total purchases, issuances, sales and settlements:
 
 
 
 
Settlements
 
1

 
—

Balance, as of September 30, 2017
 
$
(8
)
 
$
—

 
 
 
 
 
Balance, as of January 1, 2016
 
$
(91
)
 
$
297

Total gains (losses) (realized/unrealized):
 
 
 
 
Included in earnings(a)
 
12

 
(118
)
Total purchases, issuances, sales and settlements:
 
 
 
 
Settlements
 
49

 
(33
)
Sales
 
—

 
(146
)
Balance, as of September 30, 2016
 
$
(30
)
 
$
—

___________________________________________
(a)
 
 
Oil, Natural Gas
and NGL
Sales
 
Marketing, Gathering
and Compression
Revenue
 
 
 
 
 
2017
 
2016
 
2017
 
2016
 
 
 
($ in millions)
 
Total gains (losses) included in earnings for the period
 
$
1

 
$
12

 
$
—

 
$
(118
)
 
Change in unrealized gains (losses) related to assets still held at reporting date
 
$
(7
)
 
$
(1
)
 
$
—

 
$
—

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 September 30, 2017 and December 31, 2016: 
 
 
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 September 30, 2017
 
 
 
 
 
 
 
 
Financial Assets (Liabilities):
 
 
 
 
 
 
 
 
Other current assets
 
$
57

 
$
—

 
$
—

 
$
57

Other current liabilities
 
(58
)
 
—

 
—

 
(58
)
Total
 
$
(1
)
 
$
—

 
$
—

 
$
(1
)
 
 
 
 
 
 
 
 
 
As of December 31, 2016
 
 
 
 
 
 
 
 
Financial Assets (Liabilities):
 
 
 
 
 
 
 
 
Other current assets
 
$
49

 
$
—

 
$
—

 
$
49

Other current liabilities
 
(51
)
 
—

 
—

 
(51
)
Total
 
$
(2
)
 
$
—

 
$
—

 
$
(2
)
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 September 30, 2017:
Instrument
Type
 
Unobservable
Input
 
Range
 
Weighted
Average
 
Fair Value
September 30, 2017
 
 
 
 
 
 
 
 
($ in millions)
Oil trades
 
Oil price volatility curves
 
15.30% – 26.67%
 
23.43%
 
$
(9
)
Natural gas trades
 
Natural gas price volatility
curves
 
19.58% – 63.01%
 
38.24%
 
$
1