Condensed Combined Debtor-in-Possession Financial Information

12 Months Ended

Dec. 31, 2020

Condensed Financial Information Disclosure [Abstract]

Condensed Combined Debtor-in-Possession Financial Information

Condensed Combined Debtor-in-Possession Financial Information

The financial statements below represent the combined financial statements of the Debtors as of December 31, 2020 and 2019 and the years ended December 31, 2020, 2019 and 2018.

Condensed Combined Balance Sheets	Total Combined Debtor Entities
	December 31,
	2020		2019
	($ in millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	278	$	4
Other current assets	829		1,244
Total Current Assets	1,107		1,248
PROPERTY AND EQUIPMENT:
Oil and natural gas properties at cost, based on successful efforts accounting, net	4,277		13,586
Other property and equipment, net	955		1,118
Property and equipment held for sale, net	10		10
Total Property and Equipment, Net	5,242		14,714
Other long-term assets	234		187
Investments in subsidiaries and intercompany advances	1		6
TOTAL ASSETS	$	6,584	$	16,155
LIABILITIES AND EQUITY (DEFICIT):
CURRENT LIABILITIES:
Current liabilities	$	3,094	$	2,391
Total Current Liabilities	3,094		2,391
Long-term debt, net	—		9,073
Deferred income tax liabilities	—		10
Other long-term liabilities	188		317
Liabilities subject to compromise	8,643		—
Total Liabilities	11,925		11,791
EQUITY (DEFICIT):
Stockholders’ equity (deficit)	(5,341)		4,364
Total Equity (Deficit)	(5,341)		4,364
TOTAL LIABILITIES AND EQUITY (DEFICIT)	$	6,584	$	16,155

Condensed Combined Statements of Operations	Total Combined Debtor Entities
	Years Ended December 31,
	2020		2019		2018
	($ in millions)
REVENUES AND OTHER:
Oil, natural gas and NGL	$	3,334	$	4,508	$	5,136
Marketing	1,869		3,967		5,076
Total Revenues	5,203		8,475		10,212
Other	56		63		63
Gains (losses) on sales of assets	30		43		(264)
Total Revenues and Other	5,289		8,581		10,011
OPERATING EXPENSES:
Oil, natural gas and NGL production	373		520		474
Oil, natural gas and NGL gathering, processing and transportation	1,079		1,076		1,391
Severance and ad valorem taxes	149		224		188
Exploration	427		84		162
Marketing	1,889		4,003		5,158
General and administrative	266		314		334
Separation and other termination costs	44		12		38
Provision for legal contingencies	27		19		26
Depreciation, depletion and amortization	1,095		2,258		1,730
Impairments	8,501		11		131
Other operating expense	109		92		—
Total Operating Expenses	13,959		8,613		9,632
INCOME (LOSS) FROM OPERATIONS	(8,670)		(32)		379
OTHER INCOME (EXPENSE):
Interest expense	(331)		(651)		(633)
Gains (losses) on investments	(20)		(71)		139
Gains on purchases or exchanges of debt	65		75		263
Other income	16		39		67
Reorganization items, net	(796)		—		—
Equity in net earnings (losses) of subsidiary	(17)		1		1
Total Other Expense	(1,083)		(607)		(163)
INCOME (LOSS) BEFORE INCOME TAXES	(9,753)		(639)		216
INCOME TAX BENEFIT	(19)		(331)		(10)
NET INCOME (LOSS)	(9,734)		(308)		226
Other comprehensive income	33		35		34
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE	$	(9,701)	$	(273)	$	260

Condensed Combined Statements of Cash Flows	Total Combined Debtor Entities
	Years Ended December 31,
	2020		2019		2018
	($ in millions)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Cash Provided By Operating Activities	$	1,163	$	1,618	$	1,727
CASH FLOWS FROM INVESTING ACTIVITIES:
Drilling and completion costs	(1,111)		(2,180)		(1,848)
Business combination, net	—		(353)		—
Acquisitions of proved and unproved properties	(9)		(35)		(128)
Proceeds from divestitures of proved and unproved properties	136		130		2,231
Additions to other property and equipment	(22)		(48)		(21)
Proceeds from sales of other property and equipment	14		6		147
Proceeds from sales of investments	—		—		74
Net Cash Provided By (Used In) Investing Activities	(992)		(2,480)		455
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from pre-petition revolving credit facility borrowings	3,656		10,676		11,697
Payments on pre-petition revolving credit facility borrowings	(3,317)		(10,180)		(12,059)
Proceeds from DIP credit facility borrowings	60		—		—
Payments on DIP credit facility borrowings	(60)		—		—
DIP credit facility and exit facilities financing costs	(109)
Proceeds from issuance of senior notes, net	—		108		1,236
Proceeds from issuance of term loan, net	—		1,455		—
Cash paid to purchase debt	(94)		(1,073)		(2,813)
Cash paid for preferred stock dividends	(22)		(91)		(92)
Other financing activities	(11)		(32)		(149)
Intercompany advances, net	—		—		(2)
Net Cash Provided by (Used In) Financing Activities	103		863		(2,182)
Net increase in cash and cash equivalents	274		1		—
Cash and cash equivalents, beginning of period	4		3		3
Cash and cash equivalents, end of period	$	278	$	4	$	3