Debt (Tables)

3 Months Ended

Mar. 31, 2012

Debt [Abstract]

Long-Term Debt

		xxxxxxxxxx			xxxxxxxxxx
	March 31,     2012			December 31, 2011
	($ in millions)
7.625% senior notes due 2013	$	464		$	464
9.5% senior notes due 2015		1,265			1,265
6.25% euro-denominated senior notes due 2017(a)		459			446
6.5% senior notes due 2017		660			660
6.875% senior notes due 2018		474			474
7.25% senior notes due 2018		669			669
6.625% senior notes due 2019(b)		650			650
6.775% senior notes due 2019		1,300			—
6.625% senior notes due 2020		1,300			1,300
6.875% senior notes due 2020		500			500
6.125% senior notes due 2021		1,000			1,000
2.75% contingent convertible senior notes due 2035(c)		396			396
2.5% contingent convertible senior notes due 2037(c)		1,168			1,168
2.25% contingent convertible senior notes due 2038(c)		347			347
Corporate revolving bank credit facility		2,462			1,719
Midstream revolving bank credit facility		258			1
Oilfield services revolving bank credit facility		172			29
Discount on senior notes(d)		(487	)		(490	)
Interest rate derivatives(e)		25			28
Total long-term debt, net	$	13,082		$	10,626

(a) The principal amount shown is based on the exchange rate of $1.3334 to €1.00 and $1.2973 to €1.00 as of March 31, 2012 and December 31, 2011, respectively. See Note 7 for information on our related foreign currency derivatives.

(b) Issuers are Chesapeake Oilfield Operating, L.L.C. (COO) and Chesapeake Oilfield Finance, Inc. (COF), a wholly owned subsidiary of COO formed solely to facilitate the offering of the 6.625% Senior Notes due 2019. COF is nominally capitalized and has no operations or revenues. Chesapeake Energy Corporation is the issuer of all other senior notes and the contingent convertible senior notes.

(c) The holders of our contingent convertible senior notes may require us to repurchase, in cash, all or a portion of their notes at 100% of the principal amount of the notes on any of four dates that are five, ten, fifteen and twenty years before the maturity date. The notes are convertible, at the holder's option, prior to maturity under certain circumstances into cash and, if applicable, shares of our common stock using a net share settlement process. One such triggering circumstance is when the price of our common stock exceeds a threshold amount during a specified period in a fiscal quarter. Convertibility based on common stock price is measured quarter by quarter. In the first quarter of 2012, the price of our common stock was below the threshold level for each series of the contingent convertible senior notes during the specified period and, as a result, the holders do not have the option to convert their notes into cash and common stock in the second quarter of 2012 under this provision. The notes are also convertible, at the holder's option, during specified five-day periods if the trading price of the notes is below certain levels determined by reference to the trading price of our common stock. In general, upon conversion of a contingent convertible senior note, the holder will receive cash equal to the principal amount of the note and common stock for the note's conversion value in excess of such principal amount. We will pay contingent interest on the convertible senior notes after they have been outstanding at least ten years, under certain conditions. We may redeem the convertible senior notes once they have been outstanding for ten years at a redemption price of 100% of the principal amount of the notes, payable in cash. The optional repurchase dates, the common stock price conversion threshold amounts and the ending date of the first six-month period in which contingent interest may be payable for the contingent convertible senior notes are as follows:

Contingent Convertible Senior Notes	Repurchase Dates	Common Stock Price Conversion Thresholds			Contingent Interest First Payable (if applicable)
2.75% due 2035	November 15, 2015, 2020, 2025, 2030		$	48.51	May 14, 2016
2.5% due 2037	May 15, 2017, 2022, 2027, 2032		$	64.16	November 14, 2017
2.25% due 2038	December 15, 2018, 2023, 2028, 2033		$	107.27	June 14, 2019

(d) Discount at March 31, 2012 and December 31, 2011 included $427 million and $444 million, respectively, associated with the equity component of our contingent convertible senior notes. This discount is based on an effective yield method.

(e) See Note 7 for further discussion related to these instruments.

Bank Credit Facilities

	Corporate Credit Facility(a)	Midstream Credit Facility(b)	Oilfield Services Credit Facility(c)
		($ in millions)
Facility structure	Senior secured revolving	Senior secured revolving	Senior secured revolving
Maturity date	December 2015	June 2016	November 2016
Borrowing capacity	$     4,000	$        600(d)	$        500(e)
Amount outstanding as of March 31, 2012	$     2,462	$          258	$          172
Letters of credit outstanding as of March 31, 2012	$          25	$          —	$          —

(a)	Borrower is Chesapeake Exploration, L.L.C.
(b)	Borrower is Chesapeake Midstream Operating, L.L.C.
(c)	Borrower is Chesapeake Oilfield Operating, L.L.C.
(d)	We estimate the capacity was limited to approximately $370 million as of March 31, 2012 by certain restrictive provisions.
(e)	We estimate the capacity was limited to approximately $450 million as of March 31, 2012 by certain restrictive provisions.