Natural Gas and Oil Property Transactions (Tables)

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Schedule of preliminary allocation of the total purchase price

We have accounted for the Marcellus Acquisition as a business combination, using the acquisition method. The following table represents the preliminary allocation of the total purchase price to the identifiable assets acquired and the liabilities assumed based on the fair values as of the acquisition date. Certain data necessary to complete the purchase price allocation is not yet available, and includes, but is not limited to, valuation of pre-acquisition contingencies and final appraisals of assets acquired and liabilities assumed. We expect to complete the purchase price allocation during the 12-month period following the acquisition date, during which time the value of the assets and liabilities may be revised as appropriate. During the 2022 Successor Quarter, we recognized measurement period adjustments of $39 million to both restricted cash and current liabilities.

	Preliminary Purchase Price Allocation
Consideration:
Cash	$	2,000
Fair value of Chesapeake’s common stock issued in the merger	764
Working capital adjustments	6
Total consideration	$	2,770
Fair Value of Liabilities Assumed:
Current liabilities	$	459
Other long-term liabilities	129
Amounts attributable to liabilities assumed	$	588
Fair Value of Assets Acquired:
Cash, cash equivalents and restricted cash	$	39
Other current assets	218
Proved natural gas and oil properties	2,309
Unproved properties	788
Other property and equipment	1
Other long-term assets	3
Amounts attributable to assets acquired	$	3,358
Total identifiable net assets	$	2,770

The following table represents the allocation of the total purchase price of Vine to the identifiable assets acquired and the liabilities assumed based on the fair values as of the acquisition date. We finalized the acquisition accounting for this transaction as of September 30, 2022, which resulted in measurement period adjustments of $19 million to both deferred tax liabilities and unproved properties. See Note 10 for additional information regarding the change to deferred tax liabilities.

	Purchase Price Allocation
Consideration:
Cash	$	253
Fair value of Chesapeake’s common stock issued in the merger	1,231
Restricted stock unit replacement awards	6
Total consideration	$	1,490
Fair Value of Liabilities Assumed:
Current liabilities	$	765
Long-term debt	1,021
Deferred tax liabilities	30
Other long-term liabilities	272
Amounts attributable to liabilities assumed	$	2,088
Fair Value of Assets Acquired:
Cash and cash equivalents	$	59
Other current assets	206
Proved natural gas and oil properties	2,181
Unproved properties	1,099
Other property and equipment	1
Other long-term assets	32
Amounts attributable to assets acquired	$	3,578
Total identifiable net assets	$	1,490

Schedule of pro forma financial information

The information below reflects pro forma adjustments based on available information and certain assumptions that we believe are reasonable, including the estimated tax impact of the pro forma adjustments.

	Successor
	Nine Months Ended September 30, 2022
Revenues	$	7,617
Net income available to common stockholders	$	1,252
Earnings per common share:
Basic	$	10.00
Diluted	$	8.50

	Successor
	Three Months Ended September 30, 2021		Period from February 10, 2021 through September 30, 2021
Revenues	$	510	$	2,254
Net loss available to common stockholders	$	(1,159)	$	(1,732)
Loss per common share:
Basic	$	(9.15)	$	(13.70)
Diluted	$	(9.15)	$	(13.70)