false2022Q20000895126--12-3100008951262022-01-012022-06-300000895126us-gaap:CommonStockMember2022-01-012022-06-300000895126chk:ClassAWarrantsMember2022-01-012022-06-300000895126chk:ClassBWarrantsMember2022-01-012022-06-300000895126chk:ClassCWarrantsMember2022-01-012022-06-3000008951262022-07-29xbrli:shares00008951262022-06-30iso4217:USD00008951262021-12-31iso4217:USDxbrli:shares0000895126us-gaap:OilAndGasMember2022-04-012022-06-300000895126us-gaap:OilAndGasMember2021-04-012021-06-300000895126us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember2022-04-012022-06-300000895126us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember2021-04-012021-06-3000008951262022-04-012022-06-3000008951262021-04-012021-06-300000895126us-gaap:OilAndGasMember2022-01-012022-06-300000895126us-gaap:OilAndGasMember2021-02-102021-06-300000895126us-gaap:OilAndGasMember2021-01-012021-02-090000895126us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember2022-01-012022-06-300000895126us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember2021-02-102021-06-300000895126us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember2021-01-012021-02-0900008951262021-02-102021-06-3000008951262021-01-012021-02-0900008951262021-02-0900008951262020-12-3100008951262021-06-300000895126chk:ChangeInAccruedDrillingAndCompletionCostsMember2022-01-012022-06-300000895126chk:ChangeInAccruedDrillingAndCompletionCostsMember2021-02-102021-06-300000895126chk:ChangeInAccruedDrillingAndCompletionCostsMember2021-01-012021-02-090000895126us-gaap:PreferredStockMember2021-12-310000895126us-gaap:CommonStockMember2021-12-310000895126us-gaap:AdditionalPaidInCapitalMember2021-12-310000895126us-gaap:RetainedEarningsMember2021-12-310000895126us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000895126us-gaap:CommonStockMember2022-01-012022-03-310000895126us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-3100008951262022-01-012022-03-310000895126us-gaap:RetainedEarningsMember2022-01-012022-03-310000895126us-gaap:PreferredStockMember2022-03-310000895126us-gaap:CommonStockMember2022-03-310000895126us-gaap:AdditionalPaidInCapitalMember2022-03-310000895126us-gaap:RetainedEarningsMember2022-03-310000895126us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-3100008951262022-03-310000895126us-gaap:CommonStockMember2022-04-012022-06-300000895126us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300000895126us-gaap:RetainedEarningsMember2022-04-012022-06-300000895126us-gaap:PreferredStockMember2022-06-300000895126us-gaap:CommonStockMember2022-06-300000895126us-gaap:AdditionalPaidInCapitalMember2022-06-300000895126us-gaap:RetainedEarningsMember2022-06-300000895126us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300000895126us-gaap:PreferredStockMember2020-12-310000895126us-gaap:CommonStockMember2020-12-310000895126us-gaap:AdditionalPaidInCapitalMember2020-12-310000895126us-gaap:RetainedEarningsMember2020-12-310000895126us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000895126us-gaap:CommonStockMember2021-01-012021-02-090000895126us-gaap:AdditionalPaidInCapitalMember2021-01-012021-02-090000895126us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-02-090000895126us-gaap:RetainedEarningsMember2021-01-012021-02-090000895126us-gaap:PreferredStockMember2021-01-012021-02-090000895126chk:ClassAWarrantsMemberus-gaap:AdditionalPaidInCapitalMember2021-01-012021-02-090000895126chk:ClassAWarrantsMember2021-01-012021-02-090000895126chk:ClassBWarrantsMemberus-gaap:AdditionalPaidInCapitalMember2021-01-012021-02-090000895126chk:ClassBWarrantsMember2021-01-012021-02-090000895126chk:ClassCWarrantsMemberus-gaap:AdditionalPaidInCapitalMember2021-01-012021-02-090000895126chk:ClassCWarrantsMember2021-01-012021-02-090000895126us-gaap:PreferredStockMember2021-02-090000895126us-gaap:CommonStockMember2021-02-090000895126us-gaap:AdditionalPaidInCapitalMember2021-02-090000895126us-gaap:RetainedEarningsMember2021-02-090000895126us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-02-090000895126us-gaap:RetainedEarningsMember2021-02-102021-03-3100008951262021-02-102021-03-310000895126us-gaap:PreferredStockMember2021-03-310000895126us-gaap:CommonStockMember2021-03-310000895126us-gaap:AdditionalPaidInCapitalMember2021-03-310000895126us-gaap:RetainedEarningsMember2021-03-310000895126us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-3100008951262021-03-310000895126us-gaap:CommonStockMember2021-04-012021-06-300000895126us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300000895126us-gaap:RetainedEarningsMember2021-04-012021-06-300000895126us-gaap:PreferredStockMember2021-06-300000895126us-gaap:CommonStockMember2021-06-300000895126us-gaap:AdditionalPaidInCapitalMember2021-06-300000895126us-gaap:RetainedEarningsMember2021-06-300000895126us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-30chk:segment0000895126chk:NewCommonStockMember2021-02-092021-02-090000895126chk:NewCommonStockMember2021-02-090000895126chk:NewCommonStockMemberchk:UponExerciseOfWarrantsMember2021-02-090000895126chk:NewCommonStockMemberchk:FLLOTermLoanFacilityMember2021-02-092021-02-090000895126chk:SecondLienNotesMemberchk:NewCommonStockMember2021-02-092021-02-090000895126chk:NewCommonStockMemberchk:ClassAWarrantsMember2021-02-092021-02-090000895126chk:SecondLienNotesMemberchk:NewCommonStockMemberchk:ClassAWarrantsMember2021-02-090000895126chk:NewCommonStockMemberchk:ClassBWarrantsMember2021-02-092021-02-090000895126chk:SecondLienNotesMemberchk:NewCommonStockMemberchk:ClassBWarrantsMember2021-02-090000895126chk:SecondLienNotesMemberchk:NewCommonStockMemberchk:ClassCWarrantsMember2021-02-092021-02-090000895126chk:SecondLienNotesMemberchk:NewCommonStockMemberchk:ClassCWarrantsMember2021-02-090000895126chk:NewCommonStockMemberchk:AllowedUnsecuredNotesMember2021-02-092021-02-090000895126chk:NewCommonStockMemberchk:ClassCWarrantsMemberchk:AllowedUnsecuredNotesMember2021-02-092021-02-090000895126chk:NewCommonStockMemberchk:ClassCWarrantsMemberchk:AllowedUnsecuredNotesMember2021-02-090000895126chk:AllowedGeneralUnsecuredClaimMemberchk:NewCommonStockMember2021-02-092021-02-090000895126chk:AllowedGeneralUnsecuredClaimMemberchk:NewCommonStockMemberchk:ClassCWarrantsMember2021-02-092021-02-090000895126chk:AllowedGeneralUnsecuredClaimMemberchk:NewCommonStockMemberchk:ClassCWarrantsMember2021-02-09xbrli:pure0000895126chk:NewCommonStockMemberchk:RightsOfferingMember2021-02-092021-02-090000895126chk:BackstopPartiesPutOptionPremiumMemberchk:NewCommonStockMember2021-02-092021-02-090000895126chk:BackstopPartiesObligationsMemberchk:NewCommonStockMember2021-02-092021-02-090000895126chk:NewCommonStockMemberchk:ClassCWarrantsMember2021-02-090000895126chk:A2021LongTermIncentivePlanMember2021-02-090000895126srt:DirectorMember2021-02-09chk:boardMember0000895126chk:NonEmployeeDirectorsMember2021-02-090000895126srt:MaximumMember2021-02-090000895126us-gaap:ReorganizationChapter11PredecessorBeforeAdjustmentMember2021-02-090000895126srt:MinimumMemberus-gaap:ReorganizationChapter11FreshStartAdjustmentMember2021-02-090000895126us-gaap:ReorganizationChapter11FreshStartAdjustmentMembersrt:MaximumMember2021-02-090000895126us-gaap:ReorganizationChapter11FreshStartAdjustmentMember2021-02-090000895126chk:FivePointFivePercentSeniorNotesDue2026Memberus-gaap:SeniorNotesMember2021-02-090000895126chk:FivePointEightSevenFivePercentSeniorNotesDue2029Memberus-gaap:SeniorNotesMember2021-02-090000895126chk:ClassAWarrantsMember2021-02-090000895126chk:ClassBWarrantsMember2021-02-090000895126chk:ClassCWarrantsMember2021-02-090000895126us-gaap:ReorganizationChapter11PlanEffectAdjustmentMember2021-02-090000895126us-gaap:ReorganizationChapter11PlanEffectAdjustmentMember2021-02-092021-02-090000895126chk:DIPFacilityMember2021-02-092021-02-090000895126us-gaap:SecuredDebtMemberchk:TrancheAAndTrancheBLoansMember2021-02-090000895126us-gaap:ReorganizationChapter11PredecessorBeforeAdjustmentMember2021-02-092021-02-090000895126us-gaap:ReorganizationChapter11PredecessorBeforeAdjustmentMemberchk:ClassAWarrantsMember2021-02-092021-02-090000895126us-gaap:ReorganizationChapter11PredecessorBeforeAdjustmentMemberchk:ClassBWarrantsMember2021-02-092021-02-090000895126us-gaap:ReorganizationChapter11PredecessorBeforeAdjustmentMemberchk:ClassCWarrantsMember2021-02-092021-02-090000895126chk:NewCommonStockMemberchk:ClassCWarrantsMember2021-02-092021-02-0900008951262021-02-092021-02-090000895126chk:ClassAWarrantsMember2021-02-092021-02-090000895126chk:ClassBWarrantsMember2021-02-092021-02-090000895126chk:ClassCWarrantsMember2021-02-092021-02-090000895126us-gaap:ReorganizationChapter11PlanEffectAdjustmentMember2021-02-102021-06-300000895126us-gaap:ReorganizationChapter11PlanEffectAdjustmentMember2022-01-012022-06-300000895126us-gaap:ReorganizationChapter11PlanEffectAdjustmentMember2022-04-012022-06-300000895126us-gaap:ReorganizationChapter11PlanEffectAdjustmentMember2021-04-012021-06-300000895126us-gaap:ReorganizationChapter11PlanEffectAdjustmentMember2021-01-012021-02-090000895126chk:MarcellusMember2022-03-092022-03-090000895126chk:MarcellusMemberchk:ExitCreditFacilityMember2022-03-090000895126chk:MarcellusMember2022-03-090000895126chk:MarcellusMemberus-gaap:OilAndGasMember2022-03-102022-06-300000895126chk:MarcellusMember2022-03-102022-06-300000895126chk:VineEnergyCorporationVineMember2021-11-012021-11-010000895126us-gaap:ScenarioPlanMemberchk:VineEnergyCorporationVineMember2021-11-012021-11-010000895126chk:NewRBLMemberchk:VineEnergyCorporationVineMember2021-11-010000895126chk:SixPointSevenFivePercentSeniorNotesMemberus-gaap:SeniorNotesMember2021-11-010000895126chk:SixPointSevenFivePercentSeniorNotesMemberus-gaap:SeniorNotesMember2021-11-012021-11-010000895126chk:VineEnergyCorporationVineMember2021-11-010000895126us-gaap:OilAndGasMemberchk:VineEnergyCorporationVineMember2022-01-012022-06-300000895126chk:VineEnergyCorporationVineMember2022-01-012022-06-300000895126us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2022-03-252022-03-250000895126us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2022-01-012022-06-300000895126us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2022-04-012022-06-300000895126chk:ClassCWarrantsMember2022-04-012022-06-300000895126us-gaap:CommonStockMember2021-02-102021-06-300000895126chk:ClassCWarrantsMember2021-02-102021-06-300000895126chk:ClassCWarrantsMember2021-04-012021-06-300000895126us-gaap:WarrantMember2021-04-012021-06-300000895126us-gaap:WarrantMember2021-02-102021-06-300000895126us-gaap:RestrictedStockMember2021-04-012021-06-300000895126us-gaap:RestrictedStockMember2021-02-102021-06-300000895126chk:FivePointFivePercentSeniorNotesDue2026Memberus-gaap:SeniorNotesMember2022-06-300000895126us-gaap:LineOfCreditMemberchk:ExitCreditFacilityTrancheALoansMember2022-06-300000895126us-gaap:LineOfCreditMemberchk:ExitCreditFacilityTrancheALoansMember2021-12-310000895126us-gaap:LineOfCreditMemberchk:ExitCreditFacilityTrancheBLoansMember2022-06-300000895126us-gaap:LineOfCreditMemberchk:ExitCreditFacilityTrancheBLoansMember2021-12-310000895126chk:FivePointFivePercentSeniorNotesDue2026Memberus-gaap:SeniorNotesMember2021-12-310000895126chk:FivePointEightSevenFivePercentSeniorNotesDue2029Memberus-gaap:SeniorNotesMember2022-06-300000895126chk:FivePointEightSevenFivePercentSeniorNotesDue2029Memberus-gaap:SeniorNotesMember2021-12-310000895126chk:SixPointSevenFivePercentSeniorNotesDue2029Memberus-gaap:SeniorNotesMember2022-06-300000895126chk:SixPointSevenFivePercentSeniorNotesDue2029Memberus-gaap:SeniorNotesMember2021-12-310000895126us-gaap:SeniorNotesMember2022-06-300000895126us-gaap:SeniorNotesMember2021-12-310000895126us-gaap:LineOfCreditMemberchk:ExitCreditFacilityMember2021-02-090000895126us-gaap:LineOfCreditMemberchk:ExitCreditFacilityTrancheALoansMember2021-02-090000895126us-gaap:LineOfCreditMemberchk:ExitCreditFacilityTrancheBLoansMember2021-02-090000895126us-gaap:LineOfCreditMemberus-gaap:LetterOfCreditMemberchk:ExitCreditFacilityMember2022-06-300000895126srt:MinimumMemberus-gaap:LineOfCreditMemberus-gaap:BaseRateMemberchk:ExitCreditFacilityMember2022-01-012022-06-300000895126us-gaap:LineOfCreditMemberus-gaap:BaseRateMemberchk:ExitCreditFacilityMembersrt:MaximumMember2022-01-012022-06-300000895126srt:MinimumMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:LineOfCreditMemberchk:ExitCreditFacilityMember2022-01-012022-06-300000895126us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:LineOfCreditMemberchk:ExitCreditFacilityMembersrt:MaximumMember2022-01-012022-06-300000895126us-gaap:LineOfCreditMemberchk:ExitCreditFacilityMember2022-06-300000895126us-gaap:LineOfCreditMemberchk:ExitCreditFacilityMembersrt:MaximumMember2022-06-300000895126srt:MinimumMemberus-gaap:LineOfCreditMemberchk:ExitCreditFacilityMember2022-06-300000895126chk:SecuredDebtOtherMember2022-06-300000895126us-gaap:LineOfCreditMemberchk:ExitCreditFacilityTrancheALoansMember2022-01-012022-06-300000895126chk:FivePointFivePercentSeniorNotesDue2026Memberus-gaap:SeniorNotesMember2021-02-020000895126chk:FivePointEightSevenFivePercentSeniorNotesDue2029Memberus-gaap:SeniorNotesMember2021-02-020000895126us-gaap:SeniorNotesMember2021-02-020000895126chk:GatheringProcessingandTransportationAgreementMember2022-06-300000895126chk:MarcellusMemberchk:NaturalGasSalesMember2022-04-012022-06-300000895126chk:OilSalesMemberchk:MarcellusMember2022-04-012022-06-300000895126chk:NaturalGasLiquidsSalesMemberchk:MarcellusMember2022-04-012022-06-300000895126us-gaap:OilAndGasMemberchk:MarcellusMember2022-04-012022-06-300000895126chk:HaynesvilleMemberchk:NaturalGasSalesMember2022-04-012022-06-300000895126chk:OilSalesMemberchk:HaynesvilleMember2022-04-012022-06-300000895126chk:NaturalGasLiquidsSalesMemberchk:HaynesvilleMember2022-04-012022-06-300000895126us-gaap:OilAndGasMemberchk:HaynesvilleMember2022-04-012022-06-300000895126chk:NaturalGasSalesMemberchk:EagleFordMember2022-04-012022-06-300000895126chk:OilSalesMemberchk:EagleFordMember2022-04-012022-06-300000895126chk:NaturalGasLiquidsSalesMemberchk:EagleFordMember2022-04-012022-06-300000895126us-gaap:OilAndGasMemberchk:EagleFordMember2022-04-012022-06-300000895126chk:NaturalGasSalesMember2022-04-012022-06-300000895126chk:OilSalesMember2022-04-012022-06-300000895126chk:NaturalGasLiquidsSalesMember2022-04-012022-06-300000895126chk:NaturalGasMarketingSalesMember2022-04-012022-06-300000895126chk:OilMarketingSalesMember2022-04-012022-06-300000895126chk:NaturalGasLiquidsMarketingSalesMember2022-04-012022-06-300000895126chk:MarcellusMemberchk:NaturalGasSalesMember2021-04-012021-06-300000895126chk:OilSalesMemberchk:MarcellusMember2021-04-012021-06-300000895126chk:NaturalGasLiquidsSalesMemberchk:MarcellusMember2021-04-012021-06-300000895126us-gaap:OilAndGasMemberchk:MarcellusMember2021-04-012021-06-300000895126chk:HaynesvilleMemberchk:NaturalGasSalesMember2021-04-012021-06-300000895126chk:OilSalesMemberchk:HaynesvilleMember2021-04-012021-06-300000895126chk:NaturalGasLiquidsSalesMemberchk:HaynesvilleMember2021-04-012021-06-300000895126us-gaap:OilAndGasMemberchk:HaynesvilleMember2021-04-012021-06-300000895126chk:NaturalGasSalesMemberchk:EagleFordMember2021-04-012021-06-300000895126chk:OilSalesMemberchk:EagleFordMember2021-04-012021-06-300000895126chk:NaturalGasLiquidsSalesMemberchk:EagleFordMember2021-04-012021-06-300000895126us-gaap:OilAndGasMemberchk:EagleFordMember2021-04-012021-06-300000895126chk:PowderRiverBasinMemberchk:NaturalGasSalesMember2021-04-012021-06-300000895126chk:PowderRiverBasinMemberchk:OilSalesMember2021-04-012021-06-300000895126chk:PowderRiverBasinMemberchk:NaturalGasLiquidsSalesMember2021-04-012021-06-300000895126chk:PowderRiverBasinMemberus-gaap:OilAndGasMember2021-04-012021-06-300000895126chk:NaturalGasSalesMember2021-04-012021-06-300000895126chk:OilSalesMember2021-04-012021-06-300000895126chk:NaturalGasLiquidsSalesMember2021-04-012021-06-300000895126chk:NaturalGasMarketingSalesMember2021-04-012021-06-300000895126chk:OilMarketingSalesMember2021-04-012021-06-300000895126chk:NaturalGasLiquidsMarketingSalesMember2021-04-012021-06-300000895126chk:MarcellusMemberchk:NaturalGasSalesMember2022-01-012022-06-300000895126chk:OilSalesMemberchk:MarcellusMember2022-01-012022-06-300000895126chk:NaturalGasLiquidsSalesMemberchk:MarcellusMember2022-01-012022-06-300000895126us-gaap:OilAndGasMemberchk:MarcellusMember2022-01-012022-06-300000895126chk:HaynesvilleMemberchk:NaturalGasSalesMember2022-01-012022-06-300000895126chk:OilSalesMemberchk:HaynesvilleMember2022-01-012022-06-300000895126chk:NaturalGasLiquidsSalesMemberchk:HaynesvilleMember2022-01-012022-06-300000895126us-gaap:OilAndGasMemberchk:HaynesvilleMember2022-01-012022-06-300000895126chk:NaturalGasSalesMemberchk:EagleFordMember2022-01-012022-06-300000895126chk:OilSalesMemberchk:EagleFordMember2022-01-012022-06-300000895126chk:NaturalGasLiquidsSalesMemberchk:EagleFordMember2022-01-012022-06-300000895126us-gaap:OilAndGasMemberchk:EagleFordMember2022-01-012022-06-300000895126chk:PowderRiverBasinMemberchk:NaturalGasSalesMember2022-01-012022-06-300000895126chk:PowderRiverBasinMemberchk:OilSalesMember2022-01-012022-06-300000895126chk:PowderRiverBasinMemberchk:NaturalGasLiquidsSalesMember2022-01-012022-06-300000895126chk:PowderRiverBasinMemberus-gaap:OilAndGasMember2022-01-012022-06-300000895126chk:NaturalGasSalesMember2022-01-012022-06-300000895126chk:OilSalesMember2022-01-012022-06-300000895126chk:NaturalGasLiquidsSalesMember2022-01-012022-06-300000895126chk:NaturalGasMarketingSalesMember2022-01-012022-06-300000895126chk:OilMarketingSalesMember2022-01-012022-06-300000895126chk:NaturalGasLiquidsMarketingSalesMember2022-01-012022-06-300000895126chk:MarcellusMemberchk:NaturalGasSalesMember2021-02-102021-06-300000895126chk:OilSalesMemberchk:MarcellusMember2021-02-102021-06-300000895126chk:NaturalGasLiquidsSalesMemberchk:MarcellusMember2021-02-102021-06-300000895126us-gaap:OilAndGasMemberchk:MarcellusMember2021-02-102021-06-300000895126chk:HaynesvilleMemberchk:NaturalGasSalesMember2021-02-102021-06-300000895126chk:OilSalesMemberchk:HaynesvilleMember2021-02-102021-06-300000895126chk:NaturalGasLiquidsSalesMemberchk:HaynesvilleMember2021-02-102021-06-300000895126us-gaap:OilAndGasMemberchk:HaynesvilleMember2021-02-102021-06-300000895126chk:NaturalGasSalesMemberchk:EagleFordMember2021-02-102021-06-300000895126chk:OilSalesMemberchk:EagleFordMember2021-02-102021-06-300000895126chk:NaturalGasLiquidsSalesMemberchk:EagleFordMember2021-02-102021-06-300000895126us-gaap:OilAndGasMemberchk:EagleFordMember2021-02-102021-06-300000895126chk:PowderRiverBasinMemberchk:NaturalGasSalesMember2021-02-102021-06-300000895126chk:PowderRiverBasinMemberchk:OilSalesMember2021-02-102021-06-300000895126chk:PowderRiverBasinMemberchk:NaturalGasLiquidsSalesMember2021-02-102021-06-300000895126chk:PowderRiverBasinMemberus-gaap:OilAndGasMember2021-02-102021-06-300000895126chk:NaturalGasSalesMember2021-02-102021-06-300000895126chk:OilSalesMember2021-02-102021-06-300000895126chk:NaturalGasLiquidsSalesMember2021-02-102021-06-300000895126chk:NaturalGasMarketingSalesMember2021-02-102021-06-300000895126chk:OilMarketingSalesMember2021-02-102021-06-300000895126chk:NaturalGasLiquidsMarketingSalesMember2021-02-102021-06-300000895126chk:MarcellusMemberchk:NaturalGasSalesMember2021-01-012021-02-090000895126chk:OilSalesMemberchk:MarcellusMember2021-01-012021-02-090000895126chk:NaturalGasLiquidsSalesMemberchk:MarcellusMember2021-01-012021-02-090000895126us-gaap:OilAndGasMemberchk:MarcellusMember2021-01-012021-02-090000895126chk:HaynesvilleMemberchk:NaturalGasSalesMember2021-01-012021-02-090000895126chk:OilSalesMemberchk:HaynesvilleMember2021-01-012021-02-090000895126chk:NaturalGasLiquidsSalesMemberchk:HaynesvilleMember2021-01-012021-02-090000895126us-gaap:OilAndGasMemberchk:HaynesvilleMember2021-01-012021-02-090000895126chk:NaturalGasSalesMemberchk:EagleFordMember2021-01-012021-02-090000895126chk:OilSalesMemberchk:EagleFordMember2021-01-012021-02-090000895126chk:NaturalGasLiquidsSalesMemberchk:EagleFordMember2021-01-012021-02-090000895126us-gaap:OilAndGasMemberchk:EagleFordMember2021-01-012021-02-090000895126chk:PowderRiverBasinMemberchk:NaturalGasSalesMember2021-01-012021-02-090000895126chk:PowderRiverBasinMemberchk:OilSalesMember2021-01-012021-02-090000895126chk:PowderRiverBasinMemberchk:NaturalGasLiquidsSalesMember2021-01-012021-02-090000895126chk:PowderRiverBasinMemberus-gaap:OilAndGasMember2021-01-012021-02-090000895126chk:NaturalGasSalesMember2021-01-012021-02-090000895126chk:OilSalesMember2021-01-012021-02-090000895126chk:NaturalGasLiquidsSalesMember2021-01-012021-02-090000895126chk:NaturalGasMarketingSalesMember2021-01-012021-02-090000895126chk:OilMarketingSalesMember2021-01-012021-02-090000895126chk:NaturalGasLiquidsMarketingSalesMember2021-01-012021-02-090000895126chk:NaturalGasOilAndNGLSalesMember2022-06-300000895126chk:NaturalGasOilAndNGLSalesMember2021-12-310000895126chk:JointInterestMember2022-06-300000895126chk:JointInterestMember2021-12-310000895126chk:OtherRevenueMember2022-06-300000895126chk:OtherRevenueMember2021-12-310000895126srt:ScenarioForecastMember2022-01-012022-12-310000895126us-gaap:DomesticCountryMember2021-02-090000895126chk:NewCommonStockMember2022-06-300000895126chk:NewCommonStockMemberchk:VineEnergyCorporationVineMember2021-11-012021-11-010000895126chk:NewCommonStockMemberchk:MarcellusMember2022-03-092022-03-0900008951262022-03-222022-03-2200008951262022-06-022022-06-020000895126us-gaap:SubsequentEventMember2022-08-0200008951262021-12-0200008951262022-03-012022-03-3100008951262022-06-012022-06-300000895126chk:ClassAWarrantsMember2021-12-310000895126chk:ClassBWarrantsMember2021-12-310000895126chk:ClassCWarrantsMember2021-12-310000895126chk:ClassAWarrantsMember2022-01-012022-03-310000895126chk:ClassBWarrantsMember2022-01-012022-03-310000895126chk:ClassCWarrantsMember2022-01-012022-03-310000895126chk:ClassAWarrantsMember2022-03-310000895126chk:ClassBWarrantsMember2022-03-310000895126chk:ClassCWarrantsMember2022-03-310000895126chk:ClassAWarrantsMember2022-04-012022-06-300000895126chk:ClassBWarrantsMember2022-04-012022-06-300000895126chk:ClassCWarrantsMember2022-04-012022-06-300000895126chk:ClassAWarrantsMember2022-06-300000895126chk:ClassBWarrantsMember2022-06-300000895126chk:ClassCWarrantsMember2022-06-300000895126us-gaap:WarrantMember2022-01-012022-06-300000895126us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-06-300000895126us-gaap:RestrictedStockUnitsRSUMember2021-12-310000895126us-gaap:RestrictedStockUnitsRSUMember2022-06-300000895126srt:ManagementMemberus-gaap:PerformanceSharesMember2022-01-012022-06-300000895126srt:MinimumMemberus-gaap:PerformanceSharesMember2022-01-012022-06-300000895126us-gaap:PerformanceSharesMembersrt:MaximumMember2022-01-012022-06-300000895126srt:MinimumMemberus-gaap:PerformanceSharesMember2021-01-012021-12-310000895126us-gaap:PerformanceSharesMembersrt:MaximumMember2021-01-012021-12-310000895126chk:TotalShareholderReturnTSRAndRelativeTSRRTSRMemberus-gaap:PerformanceSharesMember2022-01-012022-06-300000895126us-gaap:PerformanceSharesMember2021-12-310000895126us-gaap:PerformanceSharesMember2022-01-012022-06-300000895126us-gaap:PerformanceSharesMember2022-06-300000895126us-gaap:RestrictedStockUnitsRSUMember2020-12-310000895126us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-02-090000895126us-gaap:RestrictedStockUnitsRSUMember2021-02-090000895126us-gaap:EmployeeStockOptionMember2020-01-012020-12-310000895126srt:MinimumMemberus-gaap:EmployeeStockOptionMembersrt:ManagementMember2020-01-012020-12-310000895126us-gaap:EmployeeStockOptionMembersrt:ManagementMembersrt:MaximumMember2020-01-012020-12-3100008951262020-01-012020-12-310000895126us-gaap:GeneralAndAdministrativeExpenseMember2022-04-012022-06-300000895126us-gaap:GeneralAndAdministrativeExpenseMember2021-04-012021-06-300000895126us-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-06-300000895126us-gaap:GeneralAndAdministrativeExpenseMember2021-02-102021-06-300000895126us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-02-090000895126us-gaap:OilAndGasPropertiesMember2022-04-012022-06-300000895126us-gaap:OilAndGasPropertiesMember2021-04-012021-06-300000895126us-gaap:OilAndGasPropertiesMember2022-01-012022-06-300000895126us-gaap:OilAndGasPropertiesMember2021-02-102021-06-300000895126us-gaap:OilAndGasPropertiesMember2021-01-012021-02-090000895126chk:NaturalGasOilAndNGLProductionMember2022-04-012022-06-300000895126chk:NaturalGasOilAndNGLProductionMember2021-04-012021-06-300000895126chk:NaturalGasOilAndNGLProductionMember2022-01-012022-06-300000895126chk:NaturalGasOilAndNGLProductionMember2021-02-102021-06-300000895126chk:NaturalGasOilAndNGLProductionMember2021-01-012021-02-090000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMemberus-gaap:SwapMember2022-01-012022-06-30utr:Bcf0000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMemberus-gaap:SwapMember2022-06-300000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMemberus-gaap:SwapMember2021-01-012021-12-310000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMemberus-gaap:SwapMember2021-12-310000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMemberchk:CollarMember2022-01-012022-06-300000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMemberchk:CollarMember2022-06-300000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMemberchk:CollarMember2021-01-012021-12-310000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMemberchk:CollarMember2021-12-310000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMemberchk:ThreeWayCollarsMember2022-01-012022-06-300000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMemberchk:ThreeWayCollarsMember2022-06-300000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMemberchk:ThreeWayCollarsMember2021-01-012021-12-310000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMemberchk:ThreeWayCollarsMember2021-12-310000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMemberus-gaap:CallOptionMember2022-01-012022-06-300000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMemberus-gaap:CallOptionMember2022-06-300000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMemberus-gaap:CallOptionMember2021-01-012021-12-310000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMemberus-gaap:CallOptionMember2021-12-310000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMemberchk:SwaptionsMember2022-01-012022-06-300000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMemberchk:SwaptionsMember2022-06-300000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMemberchk:SwaptionsMember2021-01-012021-12-310000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMemberchk:SwaptionsMember2021-12-310000895126srt:NaturalGasReservesMemberus-gaap:BasisSwapMemberus-gaap:EnergyRelatedDerivativeMember2022-01-012022-06-300000895126srt:NaturalGasReservesMemberus-gaap:BasisSwapMemberus-gaap:EnergyRelatedDerivativeMember2022-06-300000895126srt:NaturalGasReservesMemberus-gaap:BasisSwapMemberus-gaap:EnergyRelatedDerivativeMember2021-01-012021-12-310000895126srt:NaturalGasReservesMemberus-gaap:BasisSwapMemberus-gaap:EnergyRelatedDerivativeMember2021-12-310000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMember2022-01-012022-06-300000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMember2022-06-300000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMember2021-01-012021-12-310000895126srt:NaturalGasReservesMemberus-gaap:EnergyRelatedDerivativeMember2021-12-310000895126srt:OilReservesMemberus-gaap:EnergyRelatedDerivativeMemberus-gaap:SwapMember2022-01-012022-06-30utr:MMBbls0000895126srt:OilReservesMemberus-gaap:EnergyRelatedDerivativeMemberus-gaap:SwapMember2022-06-300000895126srt:OilReservesMemberus-gaap:EnergyRelatedDerivativeMemberus-gaap:SwapMember2021-01-012021-12-310000895126srt:OilReservesMemberus-gaap:EnergyRelatedDerivativeMemberus-gaap:SwapMember2021-12-310000895126srt:OilReservesMemberus-gaap:EnergyRelatedDerivativeMemberchk:CollarMember2022-01-012022-06-300000895126srt:OilReservesMemberus-gaap:EnergyRelatedDerivativeMemberchk:CollarMember2022-06-300000895126srt:OilReservesMemberus-gaap:EnergyRelatedDerivativeMemberchk:CollarMember2021-01-012021-12-310000895126srt:OilReservesMemberus-gaap:EnergyRelatedDerivativeMemberchk:CollarMember2021-12-310000895126srt:OilReservesMemberus-gaap:BasisSwapMemberus-gaap:EnergyRelatedDerivativeMember2022-01-012022-06-300000895126srt:OilReservesMemberus-gaap:BasisSwapMemberus-gaap:EnergyRelatedDerivativeMember2022-06-300000895126srt:OilReservesMemberus-gaap:BasisSwapMemberus-gaap:EnergyRelatedDerivativeMember2021-01-012021-12-310000895126srt:OilReservesMemberus-gaap:BasisSwapMemberus-gaap:EnergyRelatedDerivativeMember2021-12-310000895126srt:OilReservesMemberus-gaap:EnergyRelatedDerivativeMember2022-01-012022-06-300000895126srt:OilReservesMemberus-gaap:EnergyRelatedDerivativeMember2022-06-300000895126srt:OilReservesMemberus-gaap:EnergyRelatedDerivativeMember2021-01-012021-12-310000895126srt:OilReservesMemberus-gaap:EnergyRelatedDerivativeMember2021-12-310000895126us-gaap:EnergyRelatedDerivativeMember2022-06-300000895126us-gaap:EnergyRelatedDerivativeMember2021-12-310000895126us-gaap:CommodityContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMember2022-06-300000895126us-gaap:OtherNoncurrentAssetsMemberus-gaap:CommodityContractMemberus-gaap:NondesignatedMember2022-06-300000895126us-gaap:CommodityContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMember2022-06-300000895126us-gaap:CommodityContractMemberus-gaap:NondesignatedMemberus-gaap:OtherNoncurrentLiabilitiesMember2022-06-300000895126us-gaap:CommodityContractMemberus-gaap:NondesignatedMember2022-06-300000895126us-gaap:CommodityContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMember2021-12-310000895126us-gaap:CommodityContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMember2021-12-310000895126us-gaap:CommodityContractMemberus-gaap:NondesignatedMemberus-gaap:OtherNoncurrentLiabilitiesMember2021-12-310000895126us-gaap:CommodityContractMemberus-gaap:NondesignatedMember2021-12-31chk:counterparty0000895126us-gaap:CashFlowHedgingMember2020-12-310000895126us-gaap:CashFlowHedgingMember2021-01-012021-02-090000895126us-gaap:CashFlowHedgingMember2021-02-090000895126chk:MarcellusMember2022-01-012022-06-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 2022
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission File No. 1-13726
chk-20220630_g1.jpg
CHESAPEAKE ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
Oklahoma
73-1395733
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
6100 North Western Avenue,
Oklahoma City,
Oklahoma
73118
(Address of principal executive offices)(Zip Code)
(405)
 848-8000
(Registrant’s telephone number, including area code)
Securities Registered Pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, $0.01 par value per shareCHKThe Nasdaq Stock Market LLC
Class A Warrants to purchase Common StockCHKEWThe Nasdaq Stock Market LLC
Class B Warrants to purchase Common StockCHKEZThe Nasdaq Stock Market LLC
Class C Warrants to purchase Common StockCHKELThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes       No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer   Accelerated Filer   Non-accelerated Filer   
Smaller Reporting Company   Emerging Growth Company  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes       No  
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court Yes   No
As of July 29, 2022, there were 120,848,720 shares of our $0.01 par value common stock outstanding.


CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
INDEX TO FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2022
 



Definitions
Unless the context otherwise indicates, references to “us,” “we,” “our,” “ours,” “Chesapeake,” the “Company” and “Registrant” refer to Chesapeake Energy Corporation and its consolidated subsidiaries. All monetary values, other than per unit and per share amounts, are stated in millions of U.S. dollars unless otherwise specified. In addition, the following are other abbreviations and definitions of certain terms used within this Quarterly Report on Form 10-Q:
“ASC” means Accounting Standards Codification.
“Backstop Commitment Agreement” means that certain Backstop Commitment Agreement, dated as of June 28, 2020, by and between Chesapeake and the Backstop Parties, as may be further amended, modified, or supplemented from time to time, in accordance with its terms.
“Backstop Parties” means the members of the FLLO Ad Hoc Group that are signatories to the Backstop Commitment Agreement and Franklin Advisers, Inc., as investment manager on behalf of certain funds and accounts.
“Bankruptcy Code” means Title 11 of the United States Code, 11 U.S.C. §§ 101–1532, as amended.
“Bankruptcy Court” means the United States Bankruptcy Court for the Southern District of Texas.
“Bbl” or “Bbls” means barrel or barrels.
“Bcf” means billion cubic feet.
“Chapter 11 Cases” means, when used with reference to a particular Debtor, the case pending for that Debtor under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court, and when used with reference to all the Debtors, the procedurally consolidated Chapter 11 cases pending for the Debtors in the Bankruptcy Court.
“Chief” means Chief E&D Holdings, LP.
“Class A Warrants” means warrants to purchase 10 percent of the New Common Stock (after giving effect to the Rights Offering, but subject to dilution by the Management Incentive Plan, the Class B Warrants, and the Class C Warrants), at an initial exercise price per share of $27.63. The Class A Warrants are exercisable from the Effective Date until February 9, 2026.
“Class B Warrants” means warrants to purchase 10 percent of the New Common Stock (after giving effect to the Rights Offering, but subject to dilution by the Management Incentive Plan and the Class C Warrants), at an initial exercise price per share of $32.13. The Class B Warrants are exercisable from the Effective Date until February 9, 2026.
“Class C Warrants” means warrants to purchase 10 percent of the New Common Stock (after giving effect to the Rights Offering, but subject to dilution by the Management Incentive Plan), at an initial exercise price per share of $36.18. The Class C Warrants are exercisable from the Effective Date until February 9, 2026.
“Confirmation Order” means the order confirming the Fifth Amended Joint Chapter 11 Plan of Reorganization of Chesapeake Energy Corporation and its Debtor Affiliates, Docket No. 2915, entered by the Bankruptcy Court on January 16, 2021.
“DD&A” means depreciation, depletion and amortization.
“Debtors” means the Company, together with all of its direct and indirect subsidiaries that have filed the Chapter 11 Cases.
“DIP Facility” means that certain debtor-in-possession financing facility documented pursuant to the DIP Documents and DIP Order.
“Effective Date” means February 9, 2021.
“Exit Credit Facility” means the reserve-based revolving credit facility available upon emergence from bankruptcy.



“FLLO Term Loan Facility” means the facility outstanding under the FLLO Term Loan Facility Credit Agreement.
“FLLO Term Loan Facility Credit Agreement” means that certain Term Loan Agreement, dated as of December 19, 2019 ((i) as supplemented by that certain Class A Term Loan Supplement, dated as of December 19, 2019 (as amended, restated or otherwise modified from time to time), by and among Chesapeake, as borrower, the Debtor guarantors party thereto, GLAS USA LLC, as administrative agent, and the lenders party thereto, and (ii) as further amended, restated, or otherwise modified from time to time), by and among Chesapeake, the Debtor guarantors party thereto, GLAS USA LLC, as administrative agent, and the lenders party thereto.
“Free Cash Flow” (a non-GAAP measure) means net cash provided by operating activities (GAAP) less cash capital expenditures.
“G&A” means general and administrative expenses.
“GAAP” means U.S. generally accepted accounting principles.
“General Unsecured Claim” means any Claim against any Debtor that is not otherwise paid in full during the Chapter 11 Cases pursuant to an order of the Bankruptcy Court and is not an Administrative Claim, a Priority Tax Claim, an Other Priority Claim, an Other Secured Claim, a Revolving Credit Facility Claim, a FLLO Term Loan Facility Claim, a Second Lien Notes Claim, an Unsecured Notes Claim, an Intercompany Claim, or a Section 510(b) Claim.
“Marcellus Acquisition” means Chesapeake’s acquisition of Chief and associated non-operated interests held by affiliates of Radler and Tug Hill, Inc., which closed on March 9, 2022 with an effective date of January 1, 2022.
“MBbls” means thousand barrels.
“MMBbls” means million barrels.
“Mcf” means thousand cubic feet.
“Mcfe” means one thousand cubic feet of natural gas equivalent, with one barrel of oil or NGL converted to an equivalent volume of natural gas using the ratio of one barrel of oil or NGL to six Mcf of natural gas.
“MMcf” means million cubic feet.
“MMcfe” means million cubic feet of natural gas equivalent.
“New Common Stock” means the single class of common stock issued by Reorganized Chesapeake on the Effective Date.
“NGL” means natural gas liquids.
“NYMEX” means New York Mercantile Exchange.
“OPEC+” means Organization of the Petroleum Exporting Countries Plus.
“Petition Date” means June 28, 2020, the date on which the Debtors commenced the Chapter 11 Cases.
“Plan” means the Fifth Amended Joint Chapter 11 Plan of Reorganization of Chesapeake Energy Corporation and its Debtor Affiliates, attached as Exhibit A to the Confirmation Order.
“Present Value of Estimated Future Net Revenues or PV-10 (non-GAAP)” means the estimated future gross revenue to be generated from the production of proved reserves, net of estimated production and future development costs, using prices calculated as the average natural gas and oil price during the preceding 12-month period prior to the end of the current reporting period, (determined as the unweighted arithmetic average of prices on the first day of each month within the 12-month period) and costs in effect at the determination date (unless such costs are subject to change pursuant to contractual provisions), without giving effect to non-property related expenses such as general and administrative expenses, debt service and future income tax expense or to depreciation, depletion and amortization, discounted using an annual discount rate of 10%.
“Put Option Premium” means a nonrefundable aggregate fee of $60 million, which represents 10 percent of the Rights Offering Amount, payable to the Backstop Parties in accordance with, and subject to the terms of the



Backstop Commitment Agreement based on their respective backstop commitment percentages at the time such payment is made.
“Radler” means Radler 2000 Limited Partnership.
“Rights Offering” means the New Common Stock rights offering for the Rights Offering Amount consummated by the Debtors on the Effective Date.
“SEC” means United States Securities and Exchange Commission.
“Second Lien Notes” means the 11.500% senior notes due 2025 issued by Chesapeake pursuant to the Second Lien Notes Indenture.
“Second Lien Notes Claim” means any Claim on account of the Second Lien Notes.
“Tranche A Loans” means the fully revolving loans made under and on the terms set forth under the Exit Credit Facility which will be partially funded on the Effective Date, will have a scheduled maturity of 3 years from the Effective Date, and shall at all times be repaid prior to the repayment of the Tranche B Loans.
“Tranche B Loans” means term loans made under and on the terms set forth under the Exit Credit Facility which will be fully funded on the Effective Date, will have a scheduled maturity of 4 years from the Effective Date, will be repaid or prepaid only after there are no Tranche A Loans outstanding, and once so prepaid or repaid, may not be reborrowed.
“Vine” means Vine Energy Inc.
“Vine Acquisition” means Chesapeake’s acquisition of Vine, which closed on November 1, 2021.
“Warrants” means collectively, the Class A Warrants, Class B Warrants and Class C Warrants.
“/Bbl” means per barrel.
“/Mcf” means per Mcf.
“/Mcfe” means per Mcfe
“2021 Predecessor Period” means the period of January 1, 2021 through February 9, 2021.
“2021 Successor Period” means the period of February 10, 2021 through June 30, 2021.
“2021 Successor Quarter” means the three months ended June 30, 2021.
“2022 Successor Period” means the six months ended June 30, 2022.
“2022 Successor Quarter” means the three months ended June 30, 2022.


Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1.
Condensed Consolidated Financial Statements
CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)


Successor
June 30, 2022December 31, 2021
Assets
Current assets:
Cash and cash equivalents$17 $905 
Restricted cash9 9 
Accounts receivable, net1,804 1,115 
Short-term derivative assets2 5 
Other current assets178 69 
Total current assets2,010 2,103 
Property and equipment:
Natural gas and oil properties, successful efforts method
Proved natural gas and oil properties10,816 7,682 
Unproved properties2,211 1,530 
Other property and equipment498 495 
Total property and equipment13,525 9,707 
Less: accumulated depreciation, depletion and amortization(1,747)(908)
Property and equipment held for sale, net5 3 
Total property and equipment, net11,783 8,802 
Long-term derivative assets13  
Other long-term assets93 104 
Total assets$13,899 $11,009 

The accompanying notes are an integral part of these condensed consolidated financial statements.
6

Table of Contents
CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS – (Continued)
(Unaudited)


Successor
June 30, 2022December 31, 2021
Liabilities and stockholders' equity
Current liabilities:
Accounts payable$414 $308 
Accrued interest38 38 
Short-term derivative liabilities2,059 899 
Other current liabilities1,730 1,202 
Total current liabilities4,241 2,447 
Long-term debt, net3,046 2,278 
Long-term derivative liabilities446 249 
Asset retirement obligations, net of current portion337 349 
Other long-term liabilities21 15 
Total liabilities8,091 5,338 
Contingencies and commitments (Note 7)
Stockholders' equity:
Successor common stock, $0.01 par value, 450,000,000 shares authorized: 121,590,256 and 117,917,349 shares issued
1 1 
Successor additional paid-in capital5,619 4,845 
Retained earnings188 825 
Total stockholders' equity5,808 5,671 
Total liabilities and stockholders' equity$13,899 $11,009 
The accompanying notes are an integral part of these condensed consolidated financial statements.
7


CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Successor
Three Months Ended June 30, 2022Three Months Ended June 30, 2021
Revenues and other:
Natural gas, oil and NGL$2,790 $892 
Marketing1,223 539 
Natural gas and oil derivatives(514)(740)
Gains on sales of assets21 2 
Total revenues and other3,520 693 
Operating expenses:
Production118 74 
Gathering, processing and transportation274 211 
Severance and ad valorem taxes57 41 
Exploration7 1 
Marketing1,228 535 
General and administrative36 24 
Separation and other termination costs 11 
Depreciation, depletion and amortization451 229 
Impairments 1 
Other operating expense (income), net8 (4)
Total operating expenses2,179 1,123 
Income (loss) from operations1,341 (430)
Other income (expense):
Interest expense(36)(18)
Other income9 9 
Total other income (expense)(27)(9)
Income (loss) before income taxes1,314 (439)
Income tax expense77  
Net income (loss) available to common stockholders$1,237 $(439)
Earnings (loss) per common share:
Basic$9.75 $(4.48)
Diluted$8.27 $(4.48)
Weighted average common shares outstanding (in thousands):
Basic126,814 97,931 
Diluted149,532 97,931 

The accompanying notes are an integral part of these condensed consolidated financial statements.
8

Table of Contents
CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – (Continued)
(Unaudited)

SuccessorPredecessor
Six Months Ended June 30, 2022Period from February 10, 2021 through June 30, 2021Period from January 1, 2021 through February 9, 2021
Revenues and other:
Natural gas, oil and NGL$4,704 $1,445 $398 
Marketing2,090 816 239 
Natural gas and oil derivatives(2,639)(694)(382)
Gains on sales of assets300 6 5 
Total revenues and other4,455 1,573 260 
Operating expenses:
Production228 114 32 
Gathering, processing and transportation516 322 102 
Severance and ad valorem taxes120 65 18 
Exploration12 2 2 
Marketing2,079 815 237 
General and administrative62 39 21 
Separation and other termination costs 11 22 
Depreciation, depletion and amortization860 351 72 
Impairments 1  
Other operating expense (income), net31 (2)(12)
Total operating expenses3,908 1,718 494 
Income (loss) from operations547 (145)(234)
Other income (expense):
Interest expense(68)(30)(11)
Other income25 31 2 
Reorganization items, net  5,569 
Total other income (expense)(43)1 5,560 
Income (loss) before income taxes504 (144)5,326 
Income tax expense (benefit)31  (57)
Net income (loss) available to common stockholders$473 $(144)$5,383 
Earnings (loss) per common share:
Basic$3.82 $(1.47)$550.35 
Diluted$3.25 $(1.47)$534.51 
Weighted average common shares outstanding (in thousands):
Basic123,826 97,922 9,781 
Diluted145,534 97,922 10,071 

The accompanying notes are an integral part of these condensed consolidated financial statements.
9

Table of Contents
CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)

Successor
Three Months Ended June 30, 2022Three Months Ended June 30, 2021
Net income (loss)$1,237 $(439)
Other comprehensive income, net of income tax:
Reclassification of losses on settled derivative instruments  
Other comprehensive income  
Comprehensive income (loss)$1,237 $(439)

SuccessorPredecessor
Six Months Ended June 30, 2022Period from February 10, 2021 through June 30, 2021Period from January 1, 2021 through February 9, 2021
Net income (loss)$473 $(144)$5,383 
Other comprehensive income, net of
  income tax:
Reclassification of losses on settled derivative instruments  3 
Other comprehensive income  3 
Comprehensive income (loss)$473 $(144)$5,386 
The accompanying notes are an integral part of these condensed consolidated financial statements.
10

Table of Contents
CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

SuccessorPredecessor
Six Months Ended June 30, 2022Period from February 10, 2021 through June 30, 2021Period from January 1, 2021 through February 9, 2021
Cash flows from operating activities:
Net income (loss)$473 $(144)$5,383 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization860 351 72 
Deferred income tax benefit  (57)
Derivative losses, net2,639 694 382 
Cash payments on derivative settlements, net(1,611)(145)(17)
Share-based compensation10 3 3 
Gains on sales of assets(300)(6)(5)
Impairments 1  
Non-cash reorganization items, net  (6,680)
Exploration10 1 2 
Other5 (3)45 
Changes in assets and liabilities(324)51 851 
Net cash provided by (used in) operating activities1,762 803 (21)
Cash flows from investing activities:
Capital expenditures(759)(226)(66)
Business combination, net(2,006)  
Proceeds from divestitures of property and equipment403 6  
Net cash used in investing activities(2,362)(220)(66)
Cash flows from financing activities:
Proceeds from Exit Credit Facility - Tranche A Loans4,550 30  
Payments on Exit Credit Facility - Tranche A Loans(3,775)(80)(479)
Payments on DIP Facility borrowings  (1,179)
Proceeds from issuance of senior notes, net  1,000 
Proceeds from issuance of common stock  600 
Proceeds from warrant exercise3 2  
Debt issuance and other financing costs (3)(8)
Cash paid to repurchase and retire common stock(558)  
Cash paid for common stock dividends(508)(34) 
Other (2) 
Net cash used in financing activities(288)(87)(66)
Net increase (decrease) in cash, cash equivalents and restricted cash(888)496 (153)
Cash, cash equivalents and restricted cash, beginning of period914 126 279 
Cash, cash equivalents and restricted cash, end of period$26 $622 $126 
The accompanying notes are an integral part of these condensed consolidated financial statements.
11

CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS – (Continued)
(Unaudited)
SuccessorPredecessor
Six Months Ended June 30, 2022Period from February 10, 2021 through June 30, 2021Period from January 1, 2021 through February 9, 2021
Cash and cash equivalents$17 $612 $40 
Restricted cash9 10 86 
Total cash, cash equivalents and restricted cash$26 $622 $126 

Supplemental disclosures to the condensed consolidated statements of cash flows are presented below:

SuccessorPredecessor
Six Months Ended June 30, 2022Period from February 10, 2021 through June 30, 2021Period from January 1, 2021 through February 9, 2021
Supplemental cash flow information:
Cash paid for reorganization items, net$ $65 $66 
Interest paid, net of capitalized interest$69 $3 $13 
Income taxes paid, net of refunds received$113 $(3)$ 
Supplemental disclosure of significant
  non-cash investing and financing activities:
Change in accrued drilling and completion costs$106 $14 $(5)
Put option premium on equity backstop agreement$ $ $60 
Common stock issued for business combination$764 $ $ 
Operating lease obligations recognized$25 $ $ 

The accompanying notes are an integral part of these condensed consolidated financial statements.
12

Table of Contents
CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)

Preferred StockCommon Stock
SharesAmountSharesAmountAdditional Paid-in CapitalRetained Earnings (Accumulated Deficit)Accumulated Other Comprehensive IncomeTotal Stockholders' Equity
Balance as of December 31, 2021 (Successor) $ 117,917,349 $1 $4,845 $825 $ $5,671 
Issuance of common stock for Marcellus Acquisition— — 9,442,185 — 764 — — 764 
Share-based compensation— — 23,169 — 5 — — 5 
Issuance of common stock for warrant exercise— — 669,669 — 1 — — 1 
Repurchase and retirement of common stock— — (1,000,000)— — (83)— (83)
Net loss— — — — — (764)— (764)
Dividends on common stock— — — — — (211)— (211)
Balance as of March 31, 2022 (Successor) $ 127,052,372 $1 $5,615 $(233)$ $5,383 
Share-based compensation— — 146,054 — 3 — — 3 
Issuance of common stock for warrant exercise— — 166,606 — 1 — — 1 
Issuance of reserved common stock and warrants— — 36,951 — — — —  
Repurchase and retirement of common stock— — (5,811,727)— — (515)— (515)
Net income— — — — — 1,237 — 1,237 
Dividends on common stock— — — — — (301)— (301)
Balance as of June 30, 2022 (Successor) $ 121,590,256 $1 $5,619 $188 $ $5,808 
The accompanying notes are an integral part of these condensed consolidated financial statements.
13

Table of Contents
CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - (Continued)
(Unaudited)

Preferred StockCommon Stock
SharesAmountSharesAmountAdditional Paid-in CapitalRetained Earnings (Accumulated Deficit)Accumulated Other Comprehensive IncomeTotal Stockholders' Equity
Balance as of December 31, 2020 (Predecessor)5,563,358 $1,631 9,780,547 $ $16,937 $(23,954)$45 $(5,341)
Share-based compensation— — 67 — 3 — — 3 
Hedging activity— — — — — — 3 3 
Net income— — — — — 5,383 — 5,383 
Cancellation of Predecessor Equity(5,563,358)(1,631)(9,780,614)— (16,940)18,571 (48)(48)
Issuance of Successor common stock— — 97,907,081 1 3,330 — — 3,331 
Issuance of Successor Class A warrants— — — — 93 — — 93 
Issuance of Successor Class B warrants— — — — 94 — — 94 
Issuance of Successor Class C warrants— — — — 68 — — 68 
Balance as of February 9, 2021 (Predecessor) $ 97,907,081 $1 $3,585 $ $ $3,586 
Balance as of February 10, 2021 (Successor) $ 97,907,081 $1 $3,585 $ $ $3,586 
Net income— — — — — 295 — 295 
Balance as of March 31, 2021 (Successor) $ 97,907,081 $1 $3,585 $295 $ $3,881 
Share-based compensation— — 921 — 3 — — 3 
Issuance of common stock for warrant exercise— — 46,035 — 2 — — 2 
Net loss— — — — — (439)— (439)
Dividends on common stock— — — — — (34)— (34)
Balance as of June 30, 2021 (Successor) $ 97,954,037 $1 $3,590 $(178)$ $3,413 
The accompanying notes are an integral part of these condensed consolidated financial statements.
14

Table of Contents
CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

1.Basis of Presentation and Summary of Significant Accounting Policies
Description of Company
Chesapeake Energy Corporation (“Chesapeake”, “we”, “our”, “us” or the “Company”) is a natural gas and oil exploration and production company engaged in the acquisition, exploration and development of properties for the production of natural gas, oil and NGL from underground reservoirs. Our operations are located onshore in the United States. As discussed in Note 2 below, we filed the Chapter 11 Cases on the Petition Date and subsequently operated as a debtor-in-possession, in accordance with applicable provisions of the Bankruptcy Code, until emergence on February 9, 2021. To facilitate our financial statement presentations, we refer to the post-emergence reorganized Company in these condensed consolidated financial statements and footnotes as the “Successor” for periods subsequent to February 9, 2021, and to the pre-emergence Company as “Predecessor” for periods on or prior to February 9, 2021.
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements of Chesapeake were prepared in accordance with GAAP and the rules and regulations of the SEC. Pursuant to such rules and regulations, certain disclosures have been condensed or omitted.
This Quarterly Report on Form 10-Q (this “Form 10-Q”) relates to our financial position as of June 30, 2022 and December 31, 2021, the three months ended June 30, 2022 (“2022 Successor Quarter”), the six months ended June 30, 2022 (“2022 Successor Period”), the three months ended June 30, 2021 (“2021 Successor Quarter”), the period of February 10, 2021 through June 30, 2021 (“2021 Successor Period”) and the period of January 1, 2021 through February 9, 2021 (“2021 Predecessor Period”). Our annual report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K”) should be read in conjunction with this Form 10-Q. The accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments that, in the opinion of management, are necessary for a fair statement of our condensed consolidated financial statements and accompanying notes and include the accounts of our direct and indirect wholly owned subsidiaries and entities in which we have a controlling financial interest. Intercompany accounts and balances have been eliminated. The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern.
Segments
Operating segments are defined as components of an enterprise that engage in activities from which it may earn revenues and incur expenses for which separate operational financial information is available and is regularly evaluated by the chief operating decision maker for the purpose of allocating an enterprise’s resources and assessing its operating performance. We have concluded that we have only one reportable operating segment due to the similar nature of the exploration and production business across Chesapeake and its consolidated subsidiaries and the fact that our marketing activities are ancillary to our operations.
Restricted Cash
As of June 30, 2022, we had restricted cash of $9 million. The restricted funds are maintained primarily to pay certain convenience class unsecured claims following our emergence from bankruptcy.
Voluntary Filing under Chapter 11 Bankruptcy
On the Petition Date, the Debtors filed the Chapter 11 Cases under the Bankruptcy Code in the Bankruptcy Court. On June 29, 2020, the Bankruptcy Court entered an order authorizing the joint administration of the Chapter 11 Cases under the caption In re Chesapeake Energy Corporation, Case No. 20-33233. Subsidiaries with noncontrolling interests, consolidated variable interest entities and certain de minimis subsidiaries (collectively, the “Non-Filing Entities”) were not part of the bankruptcy filing. The Non-Filing Entities continued to operate in the ordinary course of business.
15

Table of Contents
CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(Unaudited)
The Bankruptcy Court confirmed the Plan and entered the Confirmation Order on January 16, 2021. The Debtors emerged from the Chapter 11 Cases on the Effective Date. The Company’s bankruptcy proceedings and related matters have been summarized below.
During the pendency of the Chapter 11 Cases, we operated our business as debtors-in-possession in accordance with the applicable provisions of the Bankruptcy Code. The Bankruptcy Court granted the first day relief we requested that was designed primarily to mitigate the impact of the Chapter 11 Cases on our operations, vendors, suppliers, customers and employees. As a result, we were able to conduct normal business activities and pay all associated obligations for the period following the Petition Date and were also authorized to pay mineral interest owner royalties, employee wages and benefits, and certain vendors and suppliers in the ordinary course for goods and services provided prior to the Petition Date. During the pendency of the Chapter 11 Cases, all transactions outside the ordinary course of business required the prior approval of the Bankruptcy Court.
Subject to certain specific exceptions under the Bankruptcy Code, the filing of the Chapter 11 Cases automatically stayed all judicial or administrative actions against us and efforts by creditors to collect on or otherwise exercise rights or remedies with respect to pre-petition claims. Absent an order from the Bankruptcy Court, substantially all of the Debtors’ pre-petition liabilities were subject to compromise and discharge under the Bankruptcy Code. The automatic stay was lifted on the Effective Date.
We have applied ASC 852, Reorganizations, in preparing the unaudited condensed consolidated financial statements for the period ended February 9, 2021. ASC 852 requires that the financial statements, for periods subsequent to the Chapter 11 Cases, distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain revenues, expenses, realized gains and losses and provisions for losses that were realized or incurred during the bankruptcy proceedings, including gain on settlement of liabilities subject to compromise, losses related to executory contracts that have been approved for rejection by the Bankruptcy Court, and unamortized debt issuance costs, premiums and discounts associated with debt classified as liabilities subject to compromise, were recorded as reorganization items, net. See Note 3 for more information regarding reorganization items.
2.Chapter 11 Emergence
As described in Note 1, on the Petition Date, the Debtors filed the Chapter 11 Cases and on September 11, 2020, the Debtors filed the Plan, which was subsequently amended, and entered the Confirmation Order on January 16, 2021. The Debtors then emerged from bankruptcy upon effectiveness of the Plan on the Effective Date. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Plan.
Plan of Reorganization
In accordance with the Plan confirmed by the Bankruptcy Court, the following significant transactions occurred upon the Company’s emergence from bankruptcy on February 9, 2021:
On the Effective Date, we issued 97,907,081 shares of New Common Stock, reserved 2,092,918 shares of New Common Stock for future issuance to eligible holders of Allowed Unsecured Notes Claims and Allowed General Unsecured Claims and reserved 37,174,210 shares of New Common Stock for issuance upon exercise of the Warrants, which were the result of the transactions described below. We also entered into a registration rights agreement, warrant agreements and amended our articles of incorporation and bylaws for the authorization of the New Common Stock and to provide registration rights thereunder, among other corporate governance actions. See Note 11 for further discussion of our post-emergence equity.
Each holder of an equity interest in the Predecessor, including Predecessor’s common and preferred stock, had such interest canceled, released, and extinguished without any distribution.
Each holder of obligations under the pre-petition revolving credit facility received, at such holder's prior determined allocation, its pro rata share of either Tranche A Loans or Tranche B Loans, on a dollar for dollar basis.
Each holder of obligations under the FLLO Term Loan Facility received its pro rata share of 23,022,420 shares of New Common Stock.
16

Table of Contents
CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(Unaudited)
Each holder of an Allowed Second Lien Notes Claim received its pro rata share of 3,635,118 shares of New Common Stock, 11,111,111 Class A Warrants to purchase 11,111,111 shares of New Common Stock, 12,345,679 Class B Warrants to purchase 12,345,679 shares of New Common Stock, and 6,858,710 Class C Warrants to purchase 6,858,710 shares of New Common Stock.
Each holder of an Allowed Unsecured Notes Claim received its pro rata share of 1,311,089 shares of New Common Stock and 2,473,757 Class C Warrants to purchase 2,473,757 shares of New Common Stock.
Each holder of an Allowed General Unsecured Claim received its pro rata share of 231,112 shares of New Common Stock and 436,060 Class C Warrants to purchase 436,060 shares of New Common Stock; provided that to the extent such Allowed General Unsecured Claim is a Convenience Claim, such holder instead received its pro rata share of $10 million, which pro rata share shall not exceed five percent of such Convenience Claim.
Participants in the Rights Offering extending to the applicable classes under the Plan received 62,927,320 shares of New Common Stock.
In connection with the Rights Offering described above, the Backstop Parties under the Backstop Commitment Agreement received 6,337,031 shares of New Common Stock in respect to the Put Option Premium, and 442,991 shares of New Common Stock were issued in connection with the backstop obligation thereunder to purchase unsubscribed shares of the New Common Stock.
2,092,918 shares of New Common Stock and 3,948,893 Class C Warrants were reserved for future issuance to eligible holders of Allowed Unsecured Notes Claims and Allowed General Unsecured Claims. The reserved New Common Stock and Class C Warrants will be issued on a pro rata basis upon the determination of the allowed portion of all disputed General Unsecured Claims and Unsecured Notes Claims.
The 2021 Long Term Incentive Plan (the “LTIP”) was approved with a share reserve equal to 6,800,000 shares of New Common Stock.
Each holder of an Allowed Other Secured Claim will receive, at the Company's option and in consultation with the Required Consenting Stakeholders (as defined in the Plan): (a) payment in full in cash; (b) the collateral securing its secured claim; (c) reinstatement of its secured claim; or (d) such other treatment that renders its secured claim unimpaired in accordance with Section 1124 of the Bankruptcy Code.
Each holder of an Allowed Other Priority Claim will receive cash up to the allowed amount of its claim.
Additionally, pursuant to the Plan confirmed by the Bankruptcy Court, the Company’s post-emergence Board of Directors is comprised of seven directors, including the Company’s Chief Executive Officer, Domenic J. Dell’Osso Jr., the Company’s Executive Chairman, Michael Wichterich, and five non-employee directors, Timothy S. Duncan, Benjamin C. Duster, IV, Sarah Emerson, Matthew M. Gallagher and Brian Steck.
17

Table of Contents
CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(Unaudited)

3.Fresh Start Accounting
Fresh Start Accounting
In connection with our emergence from bankruptcy and in accordance with ASC 852, we qualified for and applied fresh start accounting on the Effective Date. We were required to apply fresh start accounting because (i) the holders of existing voting shares of the Company prior to its emergence received less than 50% of the voting shares of the Company outstanding following its emergence from bankruptcy and (ii) the reorganization value of our assets immediately prior to confirmation of the Plan of approximately $6.8 billion was less than the post-petition liabilities and allowed claims of $13.2 billion.
In accordance with ASC 852, with the application of fresh start accounting, the Company allocated its reorganization value to its individual assets based on their estimated fair value in conformity with FASB ASC Topic 820 - Fair Value Measurements and FASB ASC Topic 805 - Business Combinations. Accordingly, the consolidated financial statements after February 9, 2021 are not comparable with the consolidated financial statements as of or prior to that date. The Effective Date fair values of the Successor’s assets and liabilities differ materially from their recorded values as reflected on the historical balance sheet of the Predecessor.
Reorganization Value
Reorganization value is derived from an estimate of enterprise value, or fair value of the Company’s interest-bearing debt and stockholders’ equity. Under ASC 852, reorganization value generally approximates fair value of the entity before considering liabilities and is intended to approximate the amount a willing buyer would pay for the assets immediately after the effects of a restructuring. As set forth in the disclosure statement, amended for updated pricing, and approved by the Bankruptcy Court, the enterprise value of the Successor was estimated to be between $3.5 billion and $4.9 billion. With the assistance of third-party valuation advisors, we determined the enterprise value and corresponding implied equity value of the Successor using various valuation approaches and methods, including: (i) income approach using a calculation of present value of future cash flows based on our financial projections, (ii) the market approach using selling prices of similar assets and (iii) the cost approach. For GAAP purposes, the Company valued the Successor’s individual assets, liabilities and equity instruments and determined an estimate of the enterprise value within the estimated range. Management concluded that the best estimate of enterprise value was $4.85 billion. Specific valuation approaches and key assumptions used to arrive at reorganization value, and the value of discrete assets and liabilities resulting from the application of fresh start accounting, are described below in greater detail within the valuation process.
The enterprise value and corresponding implied equity value are dependent upon achieving the future financial results set forth in our valuation using an asset-based methodology of estimated proved reserves, undeveloped properties, and other financial information, considerations and projections, applying a combination of the income, cost and market approaches as of the fresh start reporting date of February 9, 2021. All estimates, assumptions, valuations and financial projections, including the fair value adjustments, the financial projections, the enterprise value and equity value projections, are inherently subject to significant uncertainties and the resolution of contingencies beyond our control. Accordingly, there is no assurance that the estimates, assumptions, valuations or financial projections will be realized, and actual results could vary materially.

18

Table of Contents
CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(Unaudited)
The following table reconciles the enterprise value to the implied fair value of the Successor’s equity as of the Effective Date:
February 9, 2021
Enterprise Value$4,851 
Plus: Cash and cash equivalents(a)
48 
Less: Fair value of debt(1,313)
Successor equity value$3,586 
____________________________________________
(a)Cash and cash equivalents includes $8 million that was initially classified as restricted cash as of the Effective Date but subsequently released from escrow and returned to the Successor. Restricted cash exclusive of the $8 million is not included in the table above.
The following table reconciles the enterprise value to the reorganization value as of the Effective Date:
February 9, 2021
Enterprise Value$4,851 
Plus: Cash and cash equivalents(a)