Investments

At March 31, 2012 and December 31, 2011, we had the following investments:


				Carrying Value
	Approximate % Owned		Accounting Method	March 31, 2012		December 31, 2011
				($ in millions)

Chesapeake Midstream Partners, L.P.		46%	Equity	$	986	$	987
FTS International, Inc.		30%	Equity		263		235
Chaparral Energy, Inc.		20%	Equity		138		143
Clean Energy Fuels Corp.		—	Cost		50		50
Utica East Ohio Midstream, LLC		59%	Equity		38		—
Sundrop Fuels, Inc.		25%	Equity		34		34
Twin Eagle Resource Management, LLC		30%	Equity		26		20
Clean Energy Fuels Corp.		1%	Fair Value		21		12
Gastar Exploration Ltd.		10%	Fair Value		20		22
Ranch Westex JV, LLC		33%	Equity		13		1
Other		—	—		29		27

				$	1,618	$	1,531

Chesapeake Midstream Partners, L.P. Chesapeake Midstream Partners, L.P. (NYSE:CHKM) is a master limited partnership which we and Global Infrastructure Partners-A, L.P. and affiliated funds managed by Global Infrastructure Management, LLC and certain of their respective subsidiaries and affiliates (collectively, GIP) formed in 2010 to own, operate, develop and acquire gathering systems and other midstream energy assets. CHKM completed its initial public offering on August 3, 2010. As of March 31, 2012, public security holders, GIP and Chesapeake owned 30.5%, 23.4% and 46.1%, respectively, of all outstanding CHKM limited partner interests. CHKM limited partners, collectively, have a 98.0% interest in CHKM, and the general partner, which is owned and controlled 50/50 by Chesapeake and GIP, has a 2.0% interest in CHKM. CHKM is principally focused on natural gas gathering, the first segment of midstream energy infrastructure that connects natural gas produced at the wellhead to third-party takeaway pipelines. CHKM currently operates in Texas, Louisiana, Oklahoma, Kansas, Arkansas, Pennsylvania and West Virginia and provides gathering, treating and compression services to Chesapeake and other producers under long-term, fixed-fee contracts.

During the Current Quarter, we recorded positive equity method adjustments of $24 million for our share of CHKM's income, received cash distributions of $27 million from CHKM and recorded accretion adjustments of $2 million related to our share of equity in excess of cost. The carrying value of our investment in CHKM is less than our underlying equity in net assets by approximately $154 million as of March 31, 2012. This difference is being accreted over the 20-year estimated useful lives of the underlying assets. See Note 10 for further discussion of CHKM.

FTS International, Inc. FTS International, Inc. (FTS), based in Fort Worth, Texas, is the privately held parent company which, through its subsidiaries, provides pressure pumping and well stimulation to oil and gas companies. In the Current Quarter, we recorded positive equity method adjustments, prior to intercompany profit eliminations, of $17 million for our share of FTS's income and recorded accretion adjustments of $11 million related to our share of equity in excess of cost. The carrying value of our investments in FTS is less than our underlying equity in net assets by approximately $857 million as of March 31, 2012. The value not allocated to goodwill is being accreted over the nine-year estimated useful lives of the underlying assets.

Chaparral Energy, Inc. Chaparral Energy, Inc., based in Oklahoma City, Oklahoma, is a private independent oil and natural gas company engaged in the production, acquisition and exploitation of oil and natural gas properties.

In the Current Quarter, we recorded a $4 million charge related to our share of Chaparral's net loss and depreciation adjustments of $1 million related to the excess of our cost over our proportionate share of Chaparral's book equity. The carrying value of our investment in Chaparral is in excess of our underlying equity in net assets by approximately $54 million as of March 31, 2012. This excess is attributed to the natural gas and oil reserves held by Chaparral and is being amortized over the estimated life of these reserves based on a unit of production rate.

Clean Energy Fuels Corp. In July 2011, we agreed to invest $150 million in newly issued convertible promissory notes of Clean Energy Fuels Corp. (Nasdaq:CLNE), based in Seal Beach, California. The investment is being made in three equal $50 million promissory notes, the first of which was issued on July 11, 2011, with the remaining notes scheduled to be issued in June 2012 and June 2013. The notes bear interest at the annual rate of 7.5%, payable quarterly, and are convertible at our option into shares of Clean Energy's common stock at a 22.5% conversion premium, resulting in a conversion price of $15.80 per share. Under certain circumstances following the second anniversary of the issuance of a note, Clean Energy can force conversion of the debt. The entire principal balance of each note is due and payable seven years following issuance. Clean Energy will use our $150 million investment to accelerate its build-out of LNG fueling infrastructure for heavy-duty trucks at truck stops across interstate highways in the U.S.

In December 2011, we also purchased one million shares of Clean Energy common stock for $10 million. During the Current Quarter, the common stock price of Clean Energy increased from $12.46 per share to $21.28 per share.

Utica East Ohio Midstream L.L.C. On March 9, 2012, CMD entered into an agreement to form Utica East Ohio Midstream LLC (UEOM) with M3 Midstream, L.L.C. and EV Energy Partners, L.P. to develop necessary infrastructure for the gathering and processing of natural gas and natural gas liquids in the Utica Shale play in eastern Ohio. The infrastructure complex will consist of natural gas gathering and compression facilities constructed and operated by CMD, as well as processing, NGL fractionation, loading and terminal facilities constructed and operated by M3 Midstream, L.L.C. CMD made an initial cash contribution of $38 million in exchange for an ownership of approximately 59% in UEOM. See Note 10 for further discussion of UEOM. UEOM is not consolidated since we do not have a controlling interest.

Sundrop Fuels, Inc. In July 2011, we agreed to invest $155 million in preferred equity securities of Sundrop Fuels, Inc., a privately held cellulosic biofuels company based in Louisville, Colorado. The investment will fund construction of a nonfood biomass-based "green gasoline" plant, capable of annually producing more than 40 million gallons of gasoline from natural gas and waste cellulosic material. The investment is intended to accelerate the development of an affordable, stable, room-temperature, natural gas-based fuel for immediate use in automobiles, diesel engine vehicles and aircraft. The first $35 million tranche of our investment was funded in July 2011 and the remaining tranches of preferred equity investment will be scheduled around certain funding and operational milestones that are expected to be reached by July 2013. The full investment will represent 50% of Sundrop Fuels' equity on a fully diluted basis.

The carrying value of our investment in Sundrop is in excess of our underlying equity in net assets by approximately $25 million as of March 31, 2012. This excess will be amortized over the life of the plant, once it is placed into service.

Twin Eagle Resource Management LLC. In 2010, we invested $20 million in Twin Eagle Resource Management LLC, a natural gas trading and management firm. In February 2012, we invested an additional $9 million. During the Current Quarter, we recorded a $3 million charge related to our share of Twin Eagle's net loss. The carrying value of our investment in Twin Eagle is in excess of our equity in net assets by approximately $6 million as of March 31, 2012. This excess is being amortized over the 15-year estimated useful lives of the underlying assets.

Gastar Exploration Ltd. Gastar Exploration Ltd. (NYSE Amex:GST), based in Houston, Texas, is an independent energy company engaged in the exploration, development and production of natural gas and oil in the U.S. During the Current Quarter, the common stock price of Gastar decreased from $3.18 per share to $2.99 per share.

Ranch Westex, JV LLC. In December 2011, CMD entered into an agreement to form Ranch Westex JV, LLC with two other parties to develop, construct and operate necessary infrastructure for the processing and gathering of natural gas in Ward County, Texas. CMD's total commitment is $36 million. As of March 31, 2012, we had funded $13 million of the total commitment.