Condensed Consolidating Financial Information (Note) | 9 Months Ended |
Sep. 30, 2013 |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | ' |
Condensed Consolidating Financial Information |
Chesapeake Energy Corporation is a holding company, owns no operating assets, and has no significant operations independent of its subsidiaries. Our obligations under our outstanding senior notes and contingent convertible senior notes listed in Note 3 are fully and unconditionally guaranteed, jointly and severally, by certain of our wholly owned subsidiaries on a senior unsecured basis. Our oilfield services subsidiary, COS, and its subsidiaries are separately capitalized and are not guarantors of our senior notes or our other debt obligations, but are subject to the covenants and guarantees in the oilfield services revolving bank credit facility agreement referred to in Note 3 that limit their ability to pay dividends or distributions or make loans to Chesapeake. Our midstream subsidiary, CMD, and certain of its subsidiaries, including Chesapeake Midstream Operating, L.L.C. (CMO), were added as guarantors of our senior notes and certain other obligations in June 2012 upon the termination of the midstream credit facility. In December 2012 upon the sale of CMO to ACMP, CMO and its subsidiaries were then released as guarantors of our senior notes and of our other debt obligations, and all prior year information was restated at that time to reflect CMO and its subsidiaries as non-guarantor subsidiaries and CMD and certain of its remaining subsidiaries as guarantor subsidiaries. Certain of our oilfield services subsidiaries, subsidiaries with noncontrolling interests, consolidated variable interest entities and certain de minimis subsidiaries are non-guarantors. |
Set forth below are condensed consolidating financial statements for Chesapeake Energy Corporation (parent) on a stand-alone, unconsolidated basis, and its combined guarantor and combined non-guarantor subsidiaries as of September 30, 2013 and December 31, 2012 and for the three and nine months ended September 30, 2013 and 2012. Such financial information may not necessarily be indicative of our results of operations, cash flows or financial position had these subsidiaries operated as independent entities. |
CONDENSED CONSOLIDATING BALANCE SHEET |
AS OF SEPTEMBER 30, 2013 |
($ in millions) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | Guarantor | | Non-Guarantor | | Eliminations | | Consolidated |
Subsidiaries | Subsidiaries |
CURRENT ASSETS: | | | | | | | | | | |
Cash and cash equivalents | | $ | 966 | | | $ | — | | | $ | 14 | | | $ | 7 | | | $ | 987 | |
|
Restricted cash | | — | | | — | | | 82 | | | (7 | ) | | 75 | |
|
Other | | 104 | | | 2,606 | | | 645 | | | (423 | ) | | 2,932 | |
|
Current assets held for sale | | — | | | — | | | — | | | — | | | — | |
|
Intercompany receivable, net | | 25,863 | | | — | | | — | | | (25,863 | ) | | — | |
|
Total Current Assets | | 26,933 | | | 2,606 | | | 741 | | | (26,286 | ) | | 3,994 | |
|
PROPERTY AND EQUIPMENT: | | | | | | | | | | |
Natural gas and oil properties, at cost based on full cost accounting, net | | — | | | 29,245 | | | 3,123 | | | 151 | | | 32,519 | |
|
Other property and equipment, net | | — | | | 2,561 | | | 1,445 | | | (1 | ) | | 4,005 | |
|
Property and equipment held for sale, net | | — | | | 571 | | | 26 | | | — | | | 597 | |
|
Total Property and Equipment, | | — | | | 32,377 | | | 4,594 | | | 150 | | | 37,121 | |
Net |
LONG-TERM ASSETS: | | | | | | | | | | |
Other assets | | 114 | | | 1,316 | | | 115 | | | (372 | ) | | 1,173 | |
|
Investments in subsidiaries and | | 2,211 | | | (238 | ) | | — | | | (1,973 | ) | | — | |
intercompany advances |
TOTAL ASSETS | | $ | 29,258 | | | $ | 36,061 | | | $ | 5,450 | | | $ | (28,481 | ) | | $ | 42,288 | |
|
CURRENT LIABILITIES: | | | | | | | | | | |
Current liabilities | | $ | 242 | | | $ | 5,427 | | | $ | 431 | | | $ | (422 | ) | | $ | 5,678 | |
|
Intercompany payable, net | | — | | | 24,740 | | | 1,279 | | | (26,019 | ) | | — | |
|
Total Current Liabilities | | 242 | | | 30,167 | | | 1,710 | | | (26,441 | ) | | 5,678 | |
|
LONG-TERM LIABILITIES: | | | | | | | | | | |
Long-term debt, net | | 11,801 | | | — | | | 935 | | | — | | | 12,736 | |
|
Deferred income tax liabilities | | 638 | | | 2,397 | | | 60 | | | 328 | | | 3,423 | |
|
Other long-term liabilities | | 381 | | | 1,286 | | | 900 | | | (464 | ) | | 2,103 | |
|
Total Long-Term Liabilities | | 12,820 | | | 3,683 | | | 1,895 | | | (136 | ) | | 18,262 | |
|
EQUITY: | | | | | | | | | | |
Chesapeake stockholders’ equity | | 16,196 | | | 2,211 | | | 1,845 | | | (4,056 | ) | | 16,196 | |
|
Noncontrolling interests | | — | | | — | | | — | | | 2,152 | | | 2,152 | |
|
Total Equity | | 16,196 | | | 2,211 | | | 1,845 | | | (1,904 | ) | | 18,348 | |
|
TOTAL LIABILITIES AND EQUITY | | $ | 29,258 | | | $ | 36,061 | | | $ | 5,450 | | | $ | (28,481 | ) | | $ | 42,288 | |
|
|
CONDENSED CONSOLIDATING BALANCE SHEET |
AS OF DECEMBER 31, 2012 |
($ in millions) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent(a) | | Guarantor | | Non-Guarantor | | Eliminations | | Consolidated |
Subsidiaries(a) | Subsidiaries |
CURRENT ASSETS: | | | | | | | | | | |
Cash and cash equivalents | | $ | 228 | | | $ | — | | | $ | 59 | | | $ | — | | | $ | 287 | |
|
Restricted cash | | — | | | — | | | 111 | | | — | | | 111 | |
|
Other | | 1 | | | 2,378 | | | 512 | | | (345 | ) | | 2,546 | |
|
Current assets held for sale | | — | | | — | | | 4 | | | — | | | 4 | |
|
Intercompany receivable, net | | 25,356 | | | — | | | — | | | (25,356 | ) | | — | |
|
Total Current Assets | | 25,585 | | | 2,378 | | | 686 | | | (25,701 | ) | | 2,948 | |
|
PROPERTY AND EQUIPMENT: | | | | | | | | | | |
Natural gas and oil properties, at cost based on full cost accounting, net | | — | | | 29,083 | | | 3,057 | | | (222 | ) | | 31,918 | |
|
Other property and equipment, net | | — | | | 3,066 | | | 1,549 | | | — | | | 4,615 | |
|
Property and equipment held for sale, net | | — | | | 255 | | | 379 | | | — | | | 634 | |
|
Total Property and Equipment, | | — | | | 32,404 | | | 4,985 | | | (222 | ) | | 37,167 | |
Net |
LONG-TERM ASSETS: | | | | | | | | | | |
Other assets | | 217 | | | 1,396 | | | 261 | | | (378 | ) | | 1,496 | |
|
Investments in subsidiaries and | | 2,241 | | | (186 | ) | | — | | | (2,055 | ) | | — | |
intercompany advances |
TOTAL ASSETS | | $ | 28,043 | | | $ | 35,992 | | | $ | 5,932 | | | $ | (28,356 | ) | | $ | 41,611 | |
|
CURRENT LIABILITIES: | | | | | | | | | | |
Current liabilities | | $ | 789 | | | $ | 5,377 | | | $ | 424 | | | $ | (345 | ) | | $ | 6,245 | |
|
Current liabilities held for sale | | — | | | — | | | 21 | | | — | | | 21 | |
|
Intercompany payable, net | | — | | | 24,166 | | | 1,312 | | | (25,478 | ) | | — | |
|
Total Current Liabilities | | 789 | | | 29,543 | | | 1,757 | | | (25,823 | ) | | 6,266 | |
|
LONG-TERM LIABILITIES: | | | | | | | | | | |
Long-term debt, net | | 11,089 | | | — | | | 1,068 | | | — | | | 12,157 | |
|
Deferred income tax liabilities | | 361 | | | 2,425 | | | 127 | | | (106 | ) | | 2,807 | |
|
Other liabilities | | 235 | | | 1,783 | | | 839 | | | (372 | ) | | 2,485 | |
|
Total Long-Term Liabilities | | 11,685 | | | 4,208 | | | 2,034 | | | (478 | ) | | 17,449 | |
|
EQUITY: | | | | | | | | | | |
Chesapeake stockholders’ equity | | 15,569 | | | 2,241 | | | 2,141 | | | (4,382 | ) | | 15,569 | |
|
Noncontrolling interests | | — | | | — | | | — | | | 2,327 | | | 2,327 | |
|
Total Equity | | 15,569 | | | 2,241 | | | 2,141 | | | (2,055 | ) | | 17,896 | |
|
TOTAL LIABILITIES AND EQUITY | | $ | 28,043 | | | $ | 35,992 | | | $ | 5,932 | | | $ | (28,356 | ) | | $ | 41,611 | |
|
___________________________________________ |
| | | | | | | | | | | | | | | | | | | | |
(a) | We have revised the amounts presented as cash and cash equivalents in the Guarantor Subsidiaries and Parent columns to properly reflect the cash of the Parent of $228 million, which was incorrectly presented in the Guarantor subsidiaries as of December 31, 2012. The impact of this error was not material to any previously issued financial statements. | | | | | | | | | | | | | | | | | | | |
|
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS |
THREE MONTHS ENDED SEPTEMBER 30, 2013 |
($ in millions) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | Guarantor | | Non- | | Eliminations | | Consolidated |
Subsidiaries | Guarantor |
| Subsidiaries |
REVENUES: | | | | | | | | | | |
Natural gas, oil and NGL | | $ | — | | | $ | 1,400 | | | $ | 185 | | | $ | 1 | | | $ | 1,586 | |
|
Marketing, gathering and compression | | — | | | 3,031 | | | 1 | | | — | | | 3,032 | |
|
Oilfield services | | — | | | — | | | 552 | | | (303 | ) | | 249 | |
|
Total Revenues | | — | | | 4,431 | | | 738 | | | (302 | ) | | 4,867 | |
|
OPERATING EXPENSES: | | | | | | | | | | |
Natural gas, oil and NGL production | | — | | | 268 | | | 14 | | | — | | | 282 | |
|
Production taxes | | — | | | 60 | | | 2 | | | — | | | 62 | |
|
Marketing, gathering and compression | | — | | | 3,009 | | | — | | | — | | | 3,009 | |
|
Oilfield services | | — | | | 23 | | | 460 | | | (272 | ) | | 211 | |
|
General and administrative | | — | | | 97 | | | 24 | | | (1 | ) | | 120 | |
|
Restructuring and other termination benefits | | — | | | 63 | | | — | | | — | | | 63 | |
|
Natural gas, oil and NGL depreciation, | | — | | | 591 | | | 61 | | | — | | | 652 | |
depletion and amortization |
Depreciation and amortization of other | | — | | | 43 | | | 74 | | | (38 | ) | | 79 | |
assets |
Impairment of natural gas and oil | | — | | | — | | | 99 | | | (99 | ) | | — | |
properties |
Impairments of fixed assets and other | | — | | | 56 | | | 29 | | | — | | | 85 | |
|
Net (gains) losses on sales of | | — | | | (133 | ) | | — | | | 1 | | | (132 | ) |
fixed assets |
Total Operating Expenses | | — | | | 4,077 | | | 763 | | | (409 | ) | | 4,431 | |
|
INCOME (LOSS) FROM OPERATIONS | | — | | | 354 | | | (25 | ) | | 107 | | | 436 | |
|
OTHER INCOME (EXPENSE): | | | | | | | | | | |
Interest expense | | (207 | ) | | (27 | ) | | (21 | ) | | 215 | | | (40 | ) |
|
Losses on investments | | — | | | (22 | ) | | — | | | — | | | (22 | ) |
|
Impairment of investment | | — | | | — | | | (1 | ) | | 1 | | | — | |
|
Gains (losses) on sales of investments | | — | | | 3 | | | — | | | — | | | 3 | |
|
Other income (expense) | | 208 | | | 44 | | | 2 | | | (244 | ) | | 10 | |
|
Equity in net earnings of subsidiary | | 201 | | | (75 | ) | | — | | | (126 | ) | | — | |
|
Total Other Income (Expense) | | 202 | | | (77 | ) | | (20 | ) | | (154 | ) | | (49 | ) |
|
INCOME (LOSS) BEFORE INCOME | | 202 | | | 277 | | | (45 | ) | | (47 | ) | | 387 | |
TAXES |
INCOME TAX EXPENSE (BENEFIT) | | — | | | 134 | | | (17 | ) | | 30 | | | 147 | |
|
NET INCOME (LOSS) | | 202 | | | 143 | | | (28 | ) | | (77 | ) | | 240 | |
|
Net income attributable to | | — | | | — | | | — | | | (38 | ) | | (38 | ) |
noncontrolling interests |
NET INCOME (LOSS) ATTRIBUTABLE | | 202 | | | 143 | | | (28 | ) | | (115 | ) | | 202 | |
TO CHESAPEAKE |
Other comprehensive income (loss) | | 2 | | | 1 | | | (2 | ) | | — | | | 1 | |
|
COMPREHENSIVE INCOME (LOSS) | | $ | 204 | | | $ | 144 | | | $ | (30 | ) | | $ | (115 | ) | | $ | 203 | |
ATTRIBUTABLE TO CHESAPEAKE |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS |
THREE MONTHS ENDED SEPTEMBER 30, 2012 |
($ in millions) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | Guarantor | | Non- | | Eliminations | | Consolidated |
Subsidiaries | Guarantor |
| Subsidiaries |
REVENUES: | | | | | | | | | | |
Natural gas, oil and NGL | | $ | — | | | $ | 1,357 | | | $ | 79 | | | $ | 1 | | | $ | 1,437 | |
|
Marketing, gathering and compression | | — | | | 1,319 | | | 62 | | | — | | | 1,381 | |
|
Oilfield services | | — | | | — | | | 485 | | | (333 | ) | | 152 | |
|
Total Revenues | | — | | | 2,676 | | | 626 | | | (332 | ) | | 2,970 | |
|
OPERATING EXPENSES: | | | | | | | | | | |
Natural gas, oil and NGL production | | — | | | 311 | | | 9 | | | — | | | 320 | |
|
Production taxes | | — | | | 51 | | | 2 | | | — | | | 53 | |
|
Marketing, gathering and compression | | — | | | 1,310 | | | 29 | | | — | | | 1,339 | |
|
Oilfield services | | — | | | 80 | | | 361 | | | (325 | ) | | 116 | |
|
General and administrative | | — | | | 108 | | | 37 | | | — | | | 145 | |
|
Restructuring and other termination benefits | | — | | | 2 | | | 1 | | | — | | | 3 | |
|
Natural gas, oil and NGL depreciation, | | — | | | 716 | | | 46 | | | — | | | 762 | |
depletion and amortization |
Depreciation and amortization of other | | — | | | 43 | | | 58 | | | (35 | ) | | 66 | |
assets |
Impairment of natural gas and oil properties | | — | | | 3,167 | | | 148 | | | — | | | 3,315 | |
|
Impairments of fixed assets and other | | — | | | 8 | | | 30 | | | — | | | 38 | |
|
Net (gains) losses on sales of | | — | | | 4 | | | 3 | | | — | | | 7 | |
fixed assets |
Total Operating Expenses | | — | | | 5,800 | | | 724 | | | (360 | ) | | 6,164 | |
|
INCOME (LOSS) FROM OPERATIONS | | — | | | (3,124 | ) | | (98 | ) | | 28 | | | (3,194 | ) |
|
OTHER INCOME (EXPENSE): | | | | | | | | | | |
Interest expense | | (289 | ) | | (18 | ) | | (21 | ) | | 292 | | | (36 | ) |
|
Losses on investments | | — | | | (23 | ) | | — | | | — | | | (23 | ) |
|
Gains (losses) on sales of investments | | — | | | — | | | 31 | | | — | | | 31 | |
|
Other income (expense) | | 286 | | | 79 | | | 3 | | | (377 | ) | | (9 | ) |
|
Equity in net earnings (losses) of subsidiary | | (2,010 | ) | | (127 | ) | | — | | | 2,137 | | | — | |
|
Total Other Income (Expense) | | (2,013 | ) | | (89 | ) | | 13 | | | 2,052 | | | (37 | ) |
|
INCOME (LOSS) BEFORE INCOME | | (2,013 | ) | | (3,213 | ) | | (85 | ) | | 2,080 | | | (3,231 | ) |
TAXES |
INCOME TAX EXPENSE (BENEFIT) | | (1 | ) | | (1,204 | ) | | (33 | ) | | (22 | ) | | (1,260 | ) |
NET INCOME (LOSS) | | (2,012 | ) | | (2,009 | ) | | (52 | ) | | 2,102 | | | (1,971 | ) |
|
Net income attributable to | | — | | | — | | | — | | | (41 | ) | | (41 | ) |
noncontrolling interests |
NET INCOME (LOSS) ATTRIBUTABLE | | (2,012 | ) | | (2,009 | ) | | (52 | ) | | 2,061 | | | (2,012 | ) |
TO CHESAPEAKE |
Other comprehensive income (loss) | | 3 | | | (7 | ) | | (2 | ) | | — | | | (6 | ) |
|
COMPREHENSIVE INCOME (LOSS) | | $ | (2,009 | ) | | $ | (2,016 | ) | | $ | (54 | ) | | $ | 2,061 | | | $ | (2,018 | ) |
ATTRIBUTABLE TO CHESAPEAKE |
|
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS |
NINE MONTHS ENDED SEPTEMBER 30, 2013 |
($ in millions) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | Guarantor | | Non- | | Eliminations | | Consolidated |
Subsidiaries | Guarantor |
| Subsidiaries |
REVENUES: | | | | | | | | | | |
Natural gas, oil and NGL | | $ | — | | | $ | 4,962 | | | $ | 473 | | | $ | 9 | | | $ | 5,444 | |
|
Marketing, gathering and compression | | — | | | 6,861 | | | 10 | | | — | | | 6,871 | |
|
Oilfield services | | — | | | — | | | 1,703 | | | (1,053 | ) | | 650 | |
|
Total Revenues | | — | | | 11,823 | | | 2,186 | | | (1,044 | ) | | 12,965 | |
|
OPERATING EXPENSES: | | | | | | | | | | |
Natural gas, oil and NGL production | | — | | | 838 | | | 39 | | | — | | | 877 | |
|
Production taxes | | — | | | 167 | | | 6 | | | — | | | 173 | |
|
Marketing, gathering and compression | | — | | | 6,776 | | | 5 | | | — | | | 6,781 | |
|
Oilfield services | | — | | | 70 | | | 1,362 | | | (889 | ) | | 543 | |
|
General and administrative | | — | | | 264 | | | 73 | | | (1 | ) | | 336 | |
|
Restructuring and other termination benefits | | — | | | 200 | | | 3 | | | — | | | 203 | |
|
Natural gas, oil and NGL depreciation, | | — | | | 1,771 | | | 174 | | | — | | | 1,945 | |
depletion and amortization |
Depreciation and amortization of other | | — | | | 137 | | | 218 | | | (121 | ) | | 234 | |
assets |
Impairment of natural gas and oil | | — | | | — | | | 260 | | | (260 | ) | | — | |
properties |
Impairments of fixed assets and other | | — | | | 307 | | | 36 | | | — | | | 343 | |
|
Net gains (losses) on sales of | | — | | | (291 | ) | | — | | | 1 | | | (290 | ) |
fixed assets |
Total Operating Expenses | | — | | | 10,239 | | | 2,176 | | | (1,270 | ) | | 11,145 | |
|
INCOME (LOSS) FROM OPERATIONS | | — | | | 1,584 | | | 10 | | | 226 | | | 1,820 | |
|
OTHER INCOME (EXPENSE): | | | | | | | | | | |
Interest expense | | (703 | ) | | (70 | ) | | (63 | ) | | 672 | | | (164 | ) |
|
Losses on investments | | — | | | (26 | ) | | — | | | — | | | (26 | ) |
|
Impairment of investment | | — | | | (10 | ) | | (1 | ) | | 1 | | | (10 | ) |
|
Gains (losses) on sales of investments | | — | | | (7 | ) | | — | | | — | | | (7 | ) |
|
Losses on purchases of debt | | (70 | ) | | — | | | — | | | — | | | (70 | ) |
|
Other income (expense) | | 651 | | | 120 | | | 7 | | | (760 | ) | | 18 | |
|
Equity in net earnings of subsidiary | | 916 | | | (221 | ) | | — | | | (695 | ) | | — | |
|
Total Other Income (Expense) | | 794 | | | (214 | ) | | (57 | ) | | (782 | ) | | (259 | ) |
|
INCOME (LOSS) BEFORE INCOME TAXES | | 794 | | | 1,370 | | | (47 | ) | | (556 | ) | | 1,561 | |
|
INCOME TAX EXPENSE (BENEFIT) | | (46 | ) | | 605 | | | (18 | ) | | 53 | | | 594 | |
|
NET INCOME (LOSS) | | 840 | | | 765 | | | (29 | ) | | (609 | ) | | 967 | |
|
Net income attributable to | | — | | | — | | | — | | | (127 | ) | | (127 | ) |
noncontrolling interests |
NET INCOME (LOSS) ATTRIBUTABLE | | 840 | | | 765 | | | (29 | ) | | (736 | ) | | 840 | |
TO CHESAPEAKE |
Other comprehensive income | | 2 | | | 12 | | | (1 | ) | | — | | | 13 | |
|
COMPREHENSIVE INCOME (LOSS) | | $ | 842 | | | $ | 777 | | | $ | (30 | ) | | $ | (736 | ) | | $ | 853 | |
ATTRIBUTABLE TO CHESAPEAKE |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS |
NINE MONTHS ENDED SEPTEMBER 30, 2012 |
($ in millions) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | Guarantor | | Non- | | Eliminations | | Consolidated |
Subsidiaries | Guarantor |
| Subsidiaries |
REVENUES: | | | | | | | | | | |
Natural gas, oil and NGL | | $ | — | | | $ | 4,410 | | | $ | 209 | | | $ | 3 | | | $ | 4,622 | |
|
Marketing, gathering and compression | | — | | | 3,555 | | | 155 | | | — | | | 3,710 | |
|
Oilfield services | | — | | | — | | | 1,440 | | | (994 | ) | | 446 | |
|
Total Revenues | | — | | | 7,965 | | | 1,804 | | | (991 | ) | | 8,778 | |
|
OPERATING EXPENSES: | | | | | | | | | | |
Natural gas, oil and NGL production | | — | | | 989 | | | 16 | | | — | | | 1,005 | |
|
Production taxes | | — | | | 137 | | | 4 | | | — | | | 141 | |
|
Marketing, gathering and compression | | — | | | 3,549 | | | 82 | | | — | | | 3,631 | |
|
Oilfield services | | — | | | 141 | | | 1,029 | | | (849 | ) | | 321 | |
|
General and administrative | | — | | | 343 | | | 93 | | | — | | | 436 | |
|
Restructuring and other termination benefits | | — | | | 3 | | | 1 | | | — | | | 4 | |
|
Natural gas, oil and NGL depreciation, | | — | | | 1,761 | | | 95 | | | — | | | 1,856 | |
depletion and amortization |
Depreciation and amortization of other | | — | | | 132 | | | 205 | | | (104 | ) | | 233 | |
assets |
Impairment of natural gas and oil | | — | | | 3,167 | | | 148 | | | — | | | 3,315 | |
properties |
Impairment of fixed assets and other | | — | | | 227 | | | 54 | | | — | | | 281 | |
|
Net (gains) losses on sales of | | — | | | 2 | | | 3 | | | — | | | 5 | |
fixed assets |
Total Operating Expenses | | — | | | 10,451 | | | 1,730 | | | (953 | ) | | 11,228 | |
|
INCOME (LOSS) FROM OPERATIONS | | — | | | (2,486 | ) | | 74 | | | (38 | ) | | (2,450 | ) |
|
OTHER INCOME (EXPENSE): | | | | | | | | | | |
Interest expense | | (682 | ) | | (3 | ) | | (64 | ) | | 686 | | | (63 | ) |
|
Earnings (losses) on investments | | — | | | (142 | ) | | 55 | | | — | | | (87 | ) |
|
Gains on sales of investments | | — | | | 1,030 | | | 31 | | | — | | | 1,061 | |
|
Other income (expense) | | 667 | | | 166 | | | 10 | | | (841 | ) | | 2 | |
|
Equity in net earnings (losses) of subsidiary | | (1,060 | ) | | (179 | ) | | — | | | 1,239 | | | — | |
|
Total Other Income (Expense) | | (1,075 | ) | | 872 | | | 32 | | | 1,084 | | | 913 | |
|
INCOME (LOSS) BEFORE INCOME TAXES | | (1,075 | ) | | (1,614 | ) | | 106 | | | 1,046 | | | (1,537 | ) |
|
INCOME TAX EXPENSE (BENEFIT) | | (6 | ) | | (559 | ) | | 41 | | | (75 | ) | | (599 | ) |
|
NET INCOME (LOSS) | | (1,069 | ) | | (1,055 | ) | | 65 | | | 1,121 | | | (938 | ) |
|
Net income attributable to | | — | | | — | | | — | | | (131 | ) | | (131 | ) |
noncontrolling interests |
NET INCOME (LOSS) ATTRIBUTABLE | | (1,069 | ) | | (1,055 | ) | | 65 | | | 990 | | | (1,069 | ) |
TO CHESAPEAKE |
Other comprehensive income (loss) | | 3 | | | (25 | ) | | — | | | — | | | (22 | ) |
|
COMPREHENSIVE INCOME (LOSS) | | $ | (1,066 | ) | | $ | (1,080 | ) | | $ | 65 | | | $ | 990 | | | $ | (1,091 | ) |
ATTRIBUTABLE TO CHESAPEAKE |
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
NINE MONTHS ENDED SEPTEMBER 30, 2013 |
($ in millions) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent | | Guarantor | | Non- | | Eliminations | | Consolidated |
Subsidiaries | Guarantor |
| Subsidiaries |
CASH FLOWS FROM OPERATING | | $ | — | | | $ | 3,232 | | | $ | 362 | | | $ | (33 | ) | | $ | 3,561 | |
ACTIVITIES |
CASH FLOWS FROM INVESTING | | | | | | | | | | |
ACTIVITIES: |
Additions to proved and unproved | | — | | | (4,642 | ) | | (639 | ) | | — | | | (5,281 | ) |
properties |
Proceeds from divestitures of proved | | — | | | 2,736 | | | 53 | | | — | | | 2,789 | |
and unproved properties |
Additions to other property and | | — | | | (415 | ) | | (224 | ) | | — | | | (639 | ) |
equipment |
Other investing activities | | — | | | 67 | | | 757 | | | 260 | | | 1,084 | |
|
Net Cash Used In Investing Activities | | — | | | (2,254 | ) | | (53 | ) | | 260 | | | (2,047 | ) |
|
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | |
Proceeds from credit facilities | | — | | | 6,311 | | | 825 | | | — | | | 7,136 | |
borrowings |
Payments on credit facilities borrowings | | — | | | (6,310 | ) | | (958 | ) | | — | | | (7,268 | ) |
|
Proceeds from issuance of senior notes, | | 2,274 | | | — | | | — | | | — | | | 2,274 | |
net of discount and offering costs |
Cash paid to purchase debt | | (2,116 | ) | | — | | | — | | | — | | | (2,116 | ) |
|
Proceeds from sales of noncontrolling | | — | | | 5 | | | — | | | — | | | 5 | |
interests |
Other financing activities | | (374 | ) | | (297 | ) | | 46 | | | (220 | ) | | (845 | ) |
|
Intercompany advances, net | | 954 | | | (687 | ) | | (267 | ) | | — | | | — | |
|
Net Cash Provided By (Used In) Financing Activities | | 738 | | | (978 | ) | | (354 | ) | | (220 | ) | | (814 | ) |
|
Net increase (decrease) in cash and cash | | 738 | | | — | | | (45 | ) | | 7 | | | 700 | |
equivalents |
Cash and cash equivalents, beginning of | | 228 | | | — | | | 59 | | | — | | | 287 | |
period |
Cash and cash equivalents, end of period | | $ | 966 | | | $ | — | | | $ | 14 | | | $ | 7 | | | $ | 987 | |
|
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
NINE MONTHS ENDED SEPTEMBER 30, 2012 |
($ in millions) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent(a) | | Guarantor | | Non- | | Eliminations | | Consolidated |
Subsidiaries(a) | Guarantor |
| Subsidiaries |
CASH FLOWS FROM OPERATING ACTIVITIES | | $ | — | | | $ | 2,779 | | | $ | 200 | | | $ | (1,001 | ) | | $ | 1,978 | |
|
CASH FLOWS FROM INVESTING | | | | | | | | | | |
ACTIVITIES: |
Additions to proved and unproved | | — | | | (10,208 | ) | | (130 | ) | | — | | | (10,338 | ) |
properties |
Proceeds from divestitures of proved | | — | | | 2,445 | | | — | | | — | | | 2,445 | |
and unproved properties |
Additions to other property and | | — | | | (577 | ) | | (1,339 | ) | | — | | | (1,916 | ) |
equipment |
Other investing activities | | — | | | 3,051 | | | (158 | ) | | (1,238 | ) | | 1,655 | |
|
Net Cash Used In Investing Activities | | — | | | (5,289 | ) | | (1,627 | ) | | (1,238 | ) | | (8,154 | ) |
|
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | |
Proceeds from credit facilities borrowings | | — | | | 12,116 | | | 1,870 | | | — | | | 13,986 | |
|
Payments on credit facilities borrowings | | — | | | (12,051 | ) | | (1,563 | ) | | — | | | (13,614 | ) |
|
Proceeds from issuance of senior notes, net of discount and offering costs | | 1,263 | | | — | | | — | | | — | | | 1,263 | |
|
Proceeds from issuance of term loans, net of discount and offering costs | | 3,789 | | | — | | | — | | | — | | | 3,789 | |
|
Proceeds from sales of noncontrolling interests | | — | | | — | | | 1,056 | | | — | | | 1,056 | |
|
Other financing activities | | (367 | ) | | (154 | ) | | (2,217 | ) | | 2,239 | | | (499 | ) |
|
Intercompany advances, net | | (4,618 | ) | | 2,599 | | | 2,019 | | | — | | | — | |
|
Net Cash Provided By Financing Activities | | 67 | | | 2,510 | | | 1,165 | | | 2,239 | | | 5,981 | |
|
Change in cash and cash equivalents | | (7 | ) | | — | | | (7 | ) | | — | | | (14 | ) |
classified as current assets held for sale |
Net increase in cash and cash equivalents | | 60 | | | — | | | (269 | ) | | — | | | (209 | ) |
|
Cash and cash equivalents, beginning of | | 1 | | | — | | | 350 | | | — | | | 351 | |
period |
Cash and cash equivalents, end of period | | $ | 61 | | | $ | — | | | $ | 81 | | | $ | — | | | $ | 142 | |
|
___________________________________________ |
| | | | | | | | | | | | | | | | | | | | |
(a) | We have revised the amounts presented as cash and cash equivalents in the Guarantor Subsidiaries and Parent columns to properly reflect the cash of the Parent of $61 million, which was incorrectly presented as the Guarantor subsidiaries as of September 30, 2012. The impact of this error was not material to any previously issued financial statements. | | | | | | | | | | | | | | | | | | | |