Expand Energy (EXE) 10-Q 9 Nov 09 2009 Q3 Quarterly report Financial data

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Dec. 31, 2008
CURRENT ASSETS:
Cash and cash equivalents	$520	$1,749
Accounts receivable, net	1,298	1,324
Short-term derivative instruments	538	1,082
Other	152	137
Total Current Assets	2,508	4,292
Natural gas and oil properties, at cost based on full-cost accounting:
Evaluated natural gas and oil properties	33,513	28,965
Unevaluated properties	9,708	11,379
Less: accumulated depreciation, depletion and amortization of natural gas and oil properties	(22,489)	(11,866)
Total natural gas and oil properties, at cost based on full-cost accounting	20,732	28,478
Other property and equipment:
Natural gas gathering systems and treating plants	3,307	2,717
Buildings and land	1,656	1,513
Drilling rigs and equipment	610	430
Natural gas compressors	301	184
Other	538	482
Less: accumulated depreciation and amortization of other property and equipment	(766)	(496)
Total other property and equipment	5,646	4,830
Total Property and Equipment	26,378	33,308
OTHER ASSETS:
Investments	422	444
Long-term derivative instruments	89	261
Other assets	322	288
Total Other Assets	833	993
TOTAL ASSETS	29,719	38,593
CURRENT LIABILITIES:
Accounts payable	932	1,611
Short-term derivative instruments	28	66
Accrued liabilities	838	880
Deferred income taxes	172	358
Income taxes payable	1	108
Revenues and royalties due others	392	431
Accrued interest	151	167
Total Current Liabilities	2,514	3,621
LONG-TERM LIABILITIES:
Long-term debt, net	12,073	13,175
Deferred income tax liabilities	1,316	4,200
Asset retirement obligations	282	269
Long-term derivative instruments	256	111
Other liabilities	449	200
Total Long-Term Liabilities	14,376	17,955
CONTINGENCIES AND COMMITMENTS (Note 3)	-	-
Chesapeake stockholders' equity:
Common stock, $0.01 par value, 1,000,000,000 shares and 750,000,000 shares authorized, 645,273,711 and 607,953,437 shares issued at September 30, 2009 and December 31, 2008, respectively	6	6
Paid-in capital	11,981	11,680
Retained earnings (deficit)	(737)	4,569
Accumulated other comprehensive income (loss), net of tax of ($167) million and ($163) million, respectively	274	267
Less: treasury stock, at cost; 766,554 and 657,276 common shares as of September 30, 2009 and December 31, 2008, respectively	(12)	(10)
Total Chesapeake Stockholders' Equity	11,978	17,017
Noncontrolling interest	851	0
Total Equity	12,829	17,017
TOTAL LIABILITIES AND EQUITY	29,719	38,593
4.50% cumulative convertible preferred stock
Chesapeake stockholders' equity:
Preferred stock	256	256
5.00% cumulative convertible preferred stock (series 2005B)
Chesapeake stockholders' equity:
Preferred stock	209	209
5.00% cumulative convertible preferred stock (series 2005)
Chesapeake stockholders' equity:
Preferred stock	1	1
6.25% mandatory convertible preferred stock
Chesapeake stockholders' equity:
Preferred stock	0	36
4.125% cumulative convertible preferred stock
Chesapeake stockholders' equity:
Preferred stock	$0	$3

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
In Millions, except Share data	Sep. 30, 2009	Dec. 31, 2008
Common stock, par value	0.01	0.01
Common stock, shares authorized	1,000,000,000	750,000,000
Common stock, shares issued	645,273,711	607,953,437
Accumulated other comprehensive income (loss), tax	($167)	($163)
Treasury stock, shares	766,554	657,276
4.50% cumulative convertible preferred stock
Preferred stock, shares issued	2,558,900	2,558,900
Preferred stock, shares outstanding	2,558,900	2,558,900
Preferred stock amount entitled in liquidation	256	256
5.00% cumulative convertible preferred stock (series 2005B)
Preferred stock, shares issued	2,095,615	2,095,615
Preferred stock, shares outstanding	2,095,615	2,095,615
Preferred stock amount entitled in liquidation	209	209
5.00% cumulative convertible preferred stock (series 2005)
Preferred stock, shares issued	5,000	5,000
Preferred stock, shares outstanding	5,000	5,000
Preferred stock amount entitled in liquidation	1	1
6.25% mandatory convertible preferred stock
Preferred stock, shares issued	0	143,768
Preferred stock, shares outstanding	0	143,768
Preferred stock amount entitled in liquidation	0	36
4.125% cumulative convertible preferred stock
Preferred stock, shares issued	0	3,033
Preferred stock, shares outstanding	0	3,033
Preferred stock amount entitled in liquidation	$0	$3

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
REVENUES:
Natural gas and oil sales	$1,187	$6,408	$3,681	$5,587
Marketing, gathering and compression sales	575	1,038	1,660	2,934
Service operations revenue	49	45	139	127
Total Revenues	1,811	7,491	5,480	8,648
OPERATING COSTS:
Production expenses	218	239	670	658
Production taxes	25	87	71	250
General and administrative expenses	95	108	259	288
Marketing, gathering and compression expenses	546	1,014	1,569	2,864
Service operations expense	49	37	136	104
Natural gas and oil depreciation, depletion and amortization	295	480	1,037	1,518
Depreciation and amortization of other assets	62	48	177	124
Impairment of natural gas and oil properties and other assets	86	0	9,721	0
Loss on sale of other property and equipment	38	0	38	0
Restructuring costs	0	0	34	0
Total Operating Costs	1,414	2,013	13,712	5,806
INCOME (LOSS) FROM OPERATIONS	397	5,478	(8,232)	2,842
OTHER INCOME (EXPENSE):
Other income (expense)	(30)	(12)	(25)	(23)
Interest expense	(43)	(34)	(52)	(186)
Impairment of investments	0	0	(162)	0
Loss on exchanges of Chesapeake debt	(17)	(31)	(19)	(31)
Total Other Income (Expense)	(90)	(77)	(258)	(240)
INCOME (LOSS) BEFORE INCOME TAXES	307	5,401	(8,490)	2,602
INCOME TAX EXPENSE (BENEFIT):
Current income taxes	0	193	1	196
Deferred income taxes	115	1,886	(3,185)	806
Total Income Tax Expense (Benefit)	115	2,079	(3,184)	1,002
NET INCOME (LOSS)	192	3,322	(5,306)	1,600
Net income (loss) attributable to noncontrolling interest	0	0	0	0
NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE	192	3,322	(5,306)	1,600
Preferred stock dividends	(6)	(6)	(18)	(27)
Loss on conversion/exchange of preferred stock	0	(25)	0	(67)
NET INCOME (LOSS) AVAILABLE TO CHESAPEAKE COMMON STOCKHOLDERS	$186	$3,291	($5,324)	$1,506
EARNINGS (LOSS) PER COMMON SHARE:
Basic	0.3	5.94	-8.78	2.88
Assuming dilution	0.3	5.62	-8.78	2.76
CASH DIVIDEND DECLARED PER COMMON SHARE	0.075	0.075	0.225	0.2175
WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING (in millions):
Basic	619	554	606	523
Assuming dilution	626	588	606	557

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME (LOSS)	($5,306)	$1,600
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO CASH PROVIDED BY OPERATING ACTIVITIES:
Depreciation, depletion and amortization	1,214	1,642
Deferred income tax expense (benefit)	(3,185)	806
Impairments	9,883	0
Loss on sale of other property and equipment	38	0
Unrealized (gains) losses on derivatives	295	(89)
Realized (gains) losses on financing derivatives	(53)	59
Stock-based compensation	104	100
Accretion of discount on contingent convertible notes	60	57
Restructuring costs	12	0
Loss from equity investments	32	34
Loss on exchanges of Chesapeake debt	19	31
Other	8	5
Change in assets and liabilities	10	142
Cash provided by operating activities	3,131	4,387
CASH FLOWS FROM INVESTING ACTIVITIES:
Exploration and development of natural gas and oil properties	(2,767)	(4,621)
Acquisitions of natural gas and oil companies, proved and unproved properties and leasehold, net of cash acquired	(1,371)	(7,691)
Proceeds from sales of volumetric production payments	408	1,210
Proceeds from divestitures of proved and unproved properties and leasehold	1,321	4,666
Additions to other property and equipment	(1,362)	(1,969)
Additions to investments	(40)	(61)
Proceeds from sale of drilling rigs and equipment	0	46
Proceeds from sale of compressors	68	114
Proceeds from sale of other assets	89	21
Proceeds from sale of investments	0	2
Cash used in investing activities	(3,654)	(8,283)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from credit facilities borrowings	5,563	12,831
Payments on credit facilities borrowings	(7,866)	(11,307)
Proceeds from issuance of senior notes, net of offering costs	1,346	2,136
Proceeds from issuance of common stock, net of offering costs	0	2,598
Cash paid to repurchase Chesapeake debt	0	(312)
Cash paid for common stock dividends	(135)	(106)
Cash paid for preferred stock dividends	(18)	(29)
Proceeds from sale of noncontrolling interest in midstream joint venture	588	0
Derivative settlements	19	(146)
Net increase (decrease) in outstanding payments in excess of cash balance	(305)	210
Proceeds from mortgage of building	54	0
Proceeds from financing of real estate surface assets	145	0
Excess tax benefit from stock-based compensation	0	42
Other	(97)	(58)
Cash provided (used in) by financing activities	(706)	5,859
Net increase (decrease) in cash and cash equivalents	(1,229)	1,963
Cash and cash equivalents, beginning of period	1,749	1
Cash and cash equivalents, end of period	520	1,964
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION OF CASH PAYMENTS FOR:
Interest, net of $467 million and $390 million of capitalized interest, respectively	111	133
Income taxes, net of refunds received	$176	$5

2_Statement Of Cash Flows Indir

Statement Of Cash Flows Indirect (Parenthetical) (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Interest amount capitalized	$467	$390

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions					Preferred stock			TOTAL CHESAPEAKE STOCKHOLDERS' EQUITY	Total
Balance, beginning of period at Dec. 31, 2007	$5	$7,532	($11)		$960	$4,145	($6)
Sale of noncontrolling interest in midstream joint venture				0
Issuance of 24,822,832 and 0 shares of common stock for the purchase of proved and unproved properties and leasehold	0	0
Exchange of common stock for 143,768 and 0 shares of 6.25% preferred stock					0
NET INCOME (LOSS)						1,600			1,600
Purchase of 115,430 and 87,056 shares for company benefit plans							(3)
Hedging activity			54
Issuance of 0 and 51,750,000 shares of common stock	1	2,698
Exchange of common stock for 3,033 and 29 shares of 4.125% preferred stock					0
Release of 6,152 and 1,098 shares for company benefit plans							0
Investment activity			1
Issuance of 2.25% contingent convertible senior notes due 2038		345
Exchange of common stock for 0 and 891,100 shares of 4.50% preferred stock					(89)
Exchange of 6,707,321 and 0 shares of common stock for convertible notes	0	0
Exchange of common stock for 0 and 3,654,385 shares of 5.00% preferred stock (series 2005B)					(366)
Exchange of 1,422,425 and 12,673,135 shares of common stock for preferred stock	0	454
Stock-based compensation		124
Exercise of stock options		8
Offering expenses		(113)
Dividends on common stock		0				(115)
Dividends on preferred stock		0				(15)
Allocation of joint venture capital to Global Infrastructure Partners		0		0
Tax benefit (reduction in tax benefit) from exercise of stock-based compensation		42
Balance, end of period at Sep. 30, 2008	6	11,090	44	0	505	5,615	(9)	17,251	17,251
Balance, beginning of period at Jun. 30, 2008								17,251
Balance, end of period at Sep. 30, 2008								17,251
Balance, beginning of period at Dec. 31, 2008	6	11,680	267		505	4,569	(10)		17,017
Sale of noncontrolling interest in midstream joint venture				588
Issuance of 24,822,832 and 0 shares of common stock for the purchase of proved and unproved properties and leasehold	0	420
Exchange of common stock for 143,768 and 0 shares of 6.25% preferred stock					(36)
NET INCOME (LOSS)						(5,306)			(5,306)
Purchase of 115,430 and 87,056 shares for company benefit plans							(2)
Hedging activity			(60)
Issuance of 0 and 51,750,000 shares of common stock	0	0
Exchange of common stock for 3,033 and 29 shares of 4.125% preferred stock					(3)
Release of 6,152 and 1,098 shares for company benefit plans							0
Investment activity			67
Issuance of 2.25% contingent convertible senior notes due 2038		0
Exchange of common stock for 0 and 891,100 shares of 4.50% preferred stock					0
Exchange of 6,707,321 and 0 shares of common stock for convertible notes	0	164
Exchange of common stock for 0 and 3,654,385 shares of 5.00% preferred stock (series 2005B)					0
Exchange of 1,422,425 and 12,673,135 shares of common stock for preferred stock	0	39
Stock-based compensation		140
Exercise of stock options		3
Offering expenses		0
Dividends on common stock		(138)				0
Dividends on preferred stock		(17)				0
Allocation of joint venture capital to Global Infrastructure Partners		(263)		263
Tax benefit (reduction in tax benefit) from exercise of stock-based compensation		(47)
Balance, end of period at Sep. 30, 2009	6	11,981	274	851	466	(737)	(12)	11,978	12,829
Balance, beginning of period at Jun. 30, 2009								11,978
Balance, end of period at Sep. 30, 2009								$11,978

3_Statement Of Shareholders Equ

Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $)
			Preferred stock
Shares of 6.25% preferred stock exchanged			0
Shares of 4.125% preferred stock exchanged			29
Shares of 4.50% preferred stock exchanged			891,100
Shares of 5.00% preferred stock (series 2005 B) exchanged			3,654,385
Shares of common stock issued for the purchase of proved and unproved properties and leasehold	0	0
Shares of common stock issued	51,750,000	51,750,000
Shares of common stock for convertible notes	0	0
Shares of common stock for preferred stock	12,673,135	12,673,135
Shares of treasury stock purchase for company benefit plans				87,056
Shares of treasury stock released for company benefit plans				1,098
Shares of 6.25% preferred stock exchanged			143,768
Shares of 4.125% preferred stock exchanged			3,033
Shares of 4.50% preferred stock exchanged			0
Shares of 5.00% preferred stock (series 2005 B) exchanged			0
Shares of common stock issued for the purchase of proved and unproved properties and leasehold	24,822,832	24,822,832
Shares of common stock issued	0	0
Shares of common stock for convertible notes	6,707,321	6,707,321
Shares of common stock for preferred stock	1,422,425	1,422,425
Shares of treasury stock purchase for company benefit plans				115,430
Shares of treasury stock released for company benefit plans				6,152

Statement Of Other Comprehensiv

Statement Of Other Comprehensive Income (USD $)
In Millions	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
NET INCOME (LOSS)	$192	$3,322	($5,306)	$1,600
Other comprehensive income (loss), net of income tax:
Change in fair value of derivative instruments, net of income taxes of $38 million, $728 million, $372 million and ($105) million	62	1,187	609	(170)
Reclassification of (gain) loss on settled contracts, net of income taxes of ($144) million, $65 million, ($377) million, and $117 million	(236)	104	(617)	189
Ineffective portion of derivatives qualifying for cash flow hedge accounting, net of income taxes of $2 million, ($29) million, ($31) million and $20 million	5	(46)	(52)	34
Unrealized (gain) loss on investments, net of income taxes of $4 million, ($16) million, $14 million and $1 million	6	(27)	24	1
Reclassification of loss on investments, net of income taxes of $0, $0, $26 million and $0	0	0	43	0
Comprehensive income (loss) attributable to Chesapeake stockholders	29	4,540	(5,299)	1,654
Comprehensive income attributable to noncontrolling interest	0	0	0	0
Comprehensive income (loss)	$29	$4,540	($5,299)	$1,654

4_Statement Of Other Comprehens

Statement Of Other Comprehensive Income (Parenthetical) (USD $)
In Millions	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Change in fair value of derivative instruments, income taxes	$38	$728	$372	($105)
Reclassification of (gain) loss on settled contracts, income taxes	(144)	65	(377)	117
Ineffective portion of derivatives qualifying for cash flow hedge accounting, income taxes	2	(29)	(31)	20
Unrealized (gain) loss on investments, income taxes	4	(16)	14	1
Reclassification of loss on investments, income taxes	$0	$0	$26	$0

1.Basis of Presentation and Sum

1.Basis of Presentation and Summary of Significant Accounting Policies
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
1.Basis of Presentation and Summary of Significant Accounting Policies	1. Basis of Presentation and Summary of Significant Accounting Policies Principles of Consolidation The accompanying unaudited condensed consolidated financial statements of Chesapeake Energy Corporation and its subsidiaries have been prepared in accordance with the instructions to Form 10-Q as prescribed by the Securities and Exchange Commission (SEC). Chesapeakes annual report on Form 10-K for the year ended December31, 2008 (2008 Form 10-K) includes certain definitions and a summary of significant accounting policies and should be read in conjunction with this Form10-Q. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December31, 2008 contained in our Current Report on Form8-K dated June25, 2009. All material adjustments (consisting solely of normal recurring adjustments) which, in the opinion of management, are necessary for a fair statement of the results for the interim periods have been reflected. The results for the three and nine months ended September30, 2009 are not necessarily indicative of the results to be expected for the full year. This Form10-Q relates to the three and nine months ended September30, 2009 (the Current Quarter and the Current Period, respectively) and the three and nine months ended September30, 2008 (the Prior Quarter and the Prior Period, respectively). Any material subsequent events have been considered for disclosure through November9, 2009, the filing date of this Form10-Q. Change in Accounting Principle On January1, 2009, we adopted and applied retrospectively the provisions of Accounting Standards Codification (ASC), 470-20 Debt with Conversion and Other Options. As a result, our prior year condensed consolidated financial statements have been retrospectively adjusted. See Note 6 for additional information on the application of this accounting principle. Oil and Natural Gas Properties Ceiling Test We review the carrying value of our natural gas and oil properties under the full-cost accounting rules of the SEC on a quarterly basis. This quarterly review is referred to as a ceiling test. Under the ceiling test, capitalized costs, less accumulated amortization and related deferred income taxes, may not exceed an amount equal to the sum of the present value of estimated future net revenues (including the impact of cash flow hedges) less estimated future expenditures to be incurred in developing and producing the proved reserves, less any related income tax effects. Any excess of the net book value, less deferred income taxes, is written off as an expense. Under SEC regulations, the excess above the ceiling is not expensed (or is reduced) if, subsequent to the end of the period, but prior to the release of the financial statements, natural gas and oil prices increase sufficiently such that an excess above the ceiling would have been eliminated (or reduced) if the increased prices were used in the calculations. In calculating future net revenues, prices and costs used are those as of the end of the appropriate quarterly period except where different prices

2.Financial Instruments and Hed

2.Financial Instruments and Hedging Activities
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
2.Financial Instruments and Hedging Activities	2. Financial Instruments and Hedging Activities Natural Gas and Oil Derivatives Our results of operations and operating cash flows are impacted by changes in market prices for natural gas and oil. To mitigate a portion of the exposure to adverse market changes, we have entered into various derivative instruments. These instruments allow us to predict with greater certainty the effective natural gas and oil prices to be received for our hedged production. Although derivatives often fail to achieve 100% effectiveness for accounting purposes, we believe our derivative instruments continue to be highly effective in achieving our risk management objectives. As of September30, 2009 and December31, 2008, our natural gas and oil derivative instruments were comprised of the following types of instruments: Swaps: Chesapeake receives a fixed price and pays a floating market price to the counterparty for the hedged commodity. Collars: These instruments contain a fixed floor price (put) and ceiling price (call). If the market price exceeds the call strike price or falls below the put strike price, Chesapeake receives the fixed price and pays the market price. If the market price is between the put and the call strike price, no payments are due from either party. On occasion, we make a three-way collar by selling an additional put option with the collar in exchange for a more favorable strike price on the collar. This eliminates the counterpartys downside exposure below the second put option. Knockout swaps: Chesapeake receives a fixed price and pays a floating market price. The fixed price received by Chesapeake includes a premium in exchange for the possibility to reduce the counterpartys exposure to zero, in any given month, if the floating market price is lower than certain pre-determined knockout prices. Cap-swaps: Chesapeake receives a fixed price and pays a floating market price. The fixed price received by Chesapeake includes a premium in exchange for a cap limiting the counterpartys exposure. In other words, there is no limit to Chesapeakes exposure but there is a limit to the downside exposure of the counterparty. Call options: Chesapeake receives a premium from the counterparty in exchange for the sale of a call option. If the market price exceeds the fixed price of the call option, Chesapeake pays the counterparty such excess. If the market price settles below the fixed price of the call option, no payment is due from either party. Put options: Chesapeake receives a premium from the counterparty in exchange for the sale of a put option. If the market price falls below the fixed price of the put option, Chesapeake pays the counterparty such shortfall. If the market price settles above the fixed price of the put option, no payment is due from either party. Basis protection swaps: These instruments are arrangements that guarantee a price differential to NYMEX for natural gas from a specified delivery point. For non-Appalachian Basin basis protection swaps, which typically have negative differentials to NYMEX, Chesapeake receives a payment from the counter

3.Contingencies and Commitments

3.Contingencies and Commitments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
3.Contingencies and Commitments	3. Contingencies and Commitments Litigation On February25, 2009, a putative class action was filed in the U.S. District Court for the Southern District of New York against the company and certain of its officers and directors along with certain underwriters of the companys July 2008 common stock offering. Following the appointment of a lead plaintiff and counsel, the plaintiff filed an amended complaint on September11, 2009 alleging that the registration statement for the offering contained material misstatements and omissions and seeking damages under Sections 11, 12 and 15 of the Securities Act of 1933 of an unspecified amount and rescission. The action was transferred to the U.S. District Court for the Western District of Oklahoma on October13, 2009. A derivative action was also filed in the District Court of Oklahoma County, Oklahoma on March10, 2009 against the companys directors and certain of its officers alleging breaches of fiduciary duties relating to the disclosure matters alleged in the securities case. On March26, 2009, a shareholder filed a petition in the District Court of Oklahoma County, Oklahoma seeking to compel inspection of company books and records relating to compensation of the companys CEO. On August20, 2009, the court denied the inspection demand, dismissed the petition and entered judgment in favor of Chesapeake. The shareholder is appealing the courts ruling. Three derivative actions were filed in the District Court of Oklahoma County, Oklahoma on April28,May7, and May20, 2009 against the companys directors alleging breaches of fiduciary duties relating to compensation of the companys CEO and alleged insider trading, among other things, and seeking unspecified damages, equitable relief and disgorgement. These three derivative actions were consolidated and a Consolidated Derivative Shareholder Petition was filed on June23, 2009. Chesapeake is named as a nominal defendant. Chesapeake filed a motion to dismiss the petition on August7, 2009. The court has not set a date to hear the motion. It is inherently difficult to predict the outcome of litigation, and we are currently unable to estimate the amount of any potential liabilities associated with the foregoing cases, which are all in preliminary stages. Chesapeake is also involved in various other lawsuits and disputes incidental to its business operations, including commercial disputes, personal injury claims, claims for underpayment of royalties, property damage claims and contract actions. With regard to the latter, several mineral or leasehold owners have filed lawsuits against us seeking specific performance to require us to acquire their oil and natural gas interests and pay acreage bonus payments, damages based on breach of contract and/or, in certain cases, punitive damages based on alleged fraud. The company has satisfactorily resolved several of the suits but some remain pending. The remaining leasehold acquisition cases are in various stages of discovery. The company believes that it has substantial defenses to the claims made in all these cases. The company records an associated liability when a loss is probable and the amount i

4.Net Income Per Share

4.Net Income Per Share
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
4.Net Income Per Share	4. Net Income Per Share ASC 260, Earnings Per Share, requires presentation of basic and diluted earnings per share, as defined, on the face of the statements of operations for all entities with complex capital structures. ASC 260 requires a reconciliation of the numerator and denominator of the basic and diluted EPS computations. The following securities and associated adjustments to net income comprised of dividends and loss on conversions/exchanges were not included in the calculation of diluted earnings per share, as the effect was antidilutive: Shares NetIncome Adjustments (inmillions) ($inmillions) Three Months Ended September30, 2009: Common stock equivalent of our preferred stock outstanding: 5.00% cumulative convertible preferred stock (series 2005) $ 5.00% cumulative convertible preferred stock (series 2005B) 5 $ 3 4.50% cumulative convertible preferred stock 6 $ 3 Three Months Ended September30, 2008: Common stock equivalent of our preferred stock outstanding prior to conversion: 5.00% cumulative convertible preferred stock (series 2005B) 1 $ 13 4.50% cumulative convertible preferred stock 1 $ 12 Nine Months Ended September30, 2009: Employee stock options 1 $ Restricted stock 5 $ Common stock equivalent of our preferred stock outstanding: 5.00% cumulative convertible preferred stock (series 2005) $ 5.00% cumulative convertible preferred stock (series 2005B) 5 $ 8 4.50% cumulative convertible preferred stock 6 $ 9 Common stock equivalent of our preferred stock outstanding prior to conversion: 4.125% cumulative convertible preferred stock $ 6.25% mandatory convertible preferred stock 1 $ 1 Nine Months Ended September30, 2008: Common stock equivalent of our preferred stock outstanding prior to conversion: 5.00% cumulative convertible preferred stock (series 2005B) 5 $ 62 4.50% cumulative convertible preferred stock 2 $ 14 For the Current Period there was no difference between basic weighted average shares outstanding, which are used in computing basic EPS, and diluted weighted average shares, which are used in computing EPS assuming dilution as a result of the net loss to common stockholders. Reconciliations for the Current Quarter, Prior Quarter and Prior Period are as follows: Income (Numerator) Shares (Denominator) PerShare Amount (in millions, except per share data) Three Months Ended September30, 2009: Basic EPS: Income available to Chesapeake common stockholders $ 186 619 $ 0.30 Effect of Dilutive Securities Employee stock options 1 Restricted stock 6 Diluted EPS income available to Chesapeake common stockholders and assumed conversions $ 186 626 $ 0.30 Three Months Ended September30, 2008: Basic EPS: Income availabl

5.Stockholders' Equity, Restric

5.Stockholders' Equity, Restricted Stock and Stock Options
	1/1/2009 - 9/30/2009 USD / shares
Notes to Financial Statements [Abstract]
5.Stockholders' Equity, Restricted Stock and Stock Options	5. Stockholders Equity, Restricted Stock and Stock Options Common Stock The following is a summary of the changes in our common shares issued for the nine months ended September30, 2009 and 2008: 2009 2008 (in thousands) Shares issued at January1 607,953 511,648 Stock option exercises 429 1,473 Restricted stock issuances (net of forfeitures) 3,940 4,352 Convertible note exchanges 6,707 Preferred stock conversions/exchanges 1,422 12,673 Common stock issued for the purchase of proved and unproved properties and leasehold 24,823 Common stock issuances 51,750 Shares issued at September30 645,274 581,896 During the Current Period, holders of our 2.25% Contingent Convertible Senior Notes due 2038 exchanged approximately $238 million in aggregate principal amount for an aggregate of 6,707,321 shares of our common stock in privately negotiated exchanges. During the Current Period, we issued 24,822,832 shares of common stock, valued at $429 million, for the purchase of proved and unproved properties and leasehold pursuant to an acquisition shelf registration statement. Preferred Shares The following is a summary of the changes in our preferred shares outstanding for the nine months ended September30, 2009 and 2008: 4.50% 5.00% (2005B) 5.00% (2005) 6.25% 4.125% (in thousands) Shares outstanding at January1, 2009 2,559 2,096 5 144 3 Conversion/exchange of preferred for common stock (144 ) (3 ) Shares outstanding at September30, 2009 2,559 2,096 5 Shares outstanding at January1, 2008 3,450 5,750 5 144 3 Conversion/exchange of preferred for common stock (891 ) (3,654 ) Shares outstanding at September30, 2008 2,559 2,096 5 144 3 On March31, 2009, we converted all of our outstanding 4.125% Cumulative Convertible Preferred Stock (3,033 shares) into 182,887 shares of common stock pursuant to the companys mandatory conversion rights. On June15, 2009, we converted all of our outstanding 6.25% Mandatory Convertible Preferred Stock (143,768 shares) into 1,239,538 shares of common stock pursuant to the companys mandatory conversion rights. During the Prior Period, holders of our 5.0% Cumulative Convertible Preferred Stock (Series 2005B) exchanged 3,654,385 shares for 10,443,642 shares of common stock in privately negotiated exchanges. During the Prior Period, a holder of our 4.50% Cumulative Convertible Preferred Stock exchanged 891,000 shares for 2,227,750 shares of our common stock in a privately negotiated transaction. Dividends Dividends declared on our common stock and preferred stock are reflected as adjustments to retained earnings to the extent a surplus of retained earnings will exist after giving effect to the dividends. To the extent retained earnings are insufficient to fund the distribu

6.Senior Notes and Revolving Ba

6.Senior Notes and Revolving Bank Credit Facilities
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
6.Senior Notes and Revolving Bank Credit Facilities	6. Senior Notes and Revolving Bank Credit Facilities Our total debt consisted of the following at September30, 2009 and December31, 2008: September30, 2009 December31, 2008 (Adjusted) ($ in millions) 7.5% Senior Notes due 2013 $ 364 $ 364 7.625% Senior Notes due 2013 500 500 7.0% Senior Notes due 2014 300 300 7.5% Senior Notes due 2014 300 300 6.375% Senior Notes due 2015 600 600 9.5% Senior Notes due 2015 1,425 6.625% Senior Notes due 2016 600 600 6.875% Senior Notes due 2016 670 670 6.25% Euro-denominated Senior Notes due 2017(a) 878 835 6.5% Senior Notes due 2017 1,100 1,100 6.25% Senior Notes due 2018 600 600 7.25% Senior Notes due 2018 800 800 6.875% Senior Notes due 2020 500 500 2.75% Contingent Convertible Senior Notes due 2035(b) 451 451 2.5% Contingent Convertible Senior Notes due 2037(b) 1,378 1,378 2.25% Contingent Convertible Senior Notes due 2038(b) 888 1,126 General corporate revolving bank credit facility 1,618 3,474 CMD revolving bank credit facility 460 CMP revolving bank credit facility 12 Discount on senior notes(c) (991 ) (1,094 ) Interest rate derivatives(d) 80 211 Total notes payable and long-term debt $ 12,073 $ 13,175 (a) The principal amount shown is based on the dollar/euro exchange rate of $1.4630 to 1.00 and $1.3919 to 1.00 as of September30, 2009 and December31, 2008, respectively.See Note 2 for information on our related cross currency swap. (b) 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 holders 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 third quarter of 2009, 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 fourth quarter of 2009 under this provision. The notes are also convertible, at the holders 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 notes con

7.Segment Information

7.Segment Information
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
7.Segment Information	7. Segment Information In accordance with ASC 280, Segment Reporting, we have two reportable operating segments. Our exploration and production operational segment and natural gas and oil midstream segment are managed separately because of the nature of their products and services. The exploration and production segment is responsible for finding and producing natural gas and oil. The midstream segment is responsible for marketing, gathering and compression of natural gas and oil primarily from Chesapeake-operated wells. We also have drilling rig and trucking operations which are responsible for providing drilling rigs primarily used on Chesapeake-operated wells and trucking services utilized in the transportation of drilling rigs on both Chesapeake-operated wells and wells operated by third parties. Our drilling rig and trucking service operations are presented in Other Operations in the table below. Management evaluates the performance of our segments based upon income (loss) before income taxes. Revenues from the midstream segments sale of natural gas and oil related to Chesapeakes ownership interests are reflected as exploration and production revenues. Such amounts totaled $716 million, $1.591 billion, $2.009 billion and $4.667 billion for the Current Quarter, the Prior Quarter, the Current Period and the Prior Period. The following table presents selected financial information for Chesapeakes operating segments. Exploration andProduction Midstream Other Operations Intercompany Eliminations Consolidated Total ($ in millions) Three Months Ended September30, 2009: Revenues $ 1,187 $ 1,291 $ 69 $ (736 ) $ 1,811 Intersegment revenues (716 ) (20 ) 736 Total revenues $ 1,187 $ 575 $ 49 $ $ 1,811 Income (loss) before income taxes $ 431 $ (111 ) $ (19 ) $ 6 $ 307 Three Months Ended September30, 2008 (Adjusted): Revenues $ 6,408 $ 2,629 $ 164 $ (1,710 ) $ 7,491 Intersegment revenues (1,591 ) (119 ) 1,710 Total revenues $ 6,408 $ 1,038 $ 45 $ $ 7,491 Income (loss) before income taxes $ 5,384 $ 19 $ 21 $ (23 ) $ 5,401 Nine Months Ended September30, 2009: Revenues $ 3,681 $ 3,669 $ 338 $ (2,208 ) $ 5,480 Intersegment revenues (2,009 ) (199 ) 2,208 Total revenues $ 3,681 $ 1,660 $ 139 $ $ 5,480 Income (loss) before income taxes $ (8,354 ) $ (82 ) $ (53 ) $ (1 ) $ (8,490 )

8.Midstream Joint Venture

8.Midstream Joint Venture
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
8.Midstream Joint Venture	8. Midstream Joint Venture On September30, 2009, we formed a joint venture with Global Infrastructure Partners (GIP), a New York-based private equity fund, to own and operate natural gas midstream assets. As part of the transaction, Chesapeake contributed certain natural gas gathering and processing assets to a new entity, Chesapeake Midstream Partners, L.L.C. (CMP), and GIP purchased a 50% interest in CMP. Chesapeake retained the remaining 50% interest in CMP and received a $588 million cash distribution from CMP. The assets we contributed to the joint venture were substantially all of our midstream assets in the Barnett Shale and also the majority of our non-shale midstream assets in the Arkoma, Anadarko, Delaware and Permian Basins. The financial results of CMP will be consolidated and GIPs 50% ownership interest is reflected as a noncontrolling interest as of September30, 2009 in our consolidated financial statements. CMP will focus on unregulated business activities in service to both Chesapeake and third-party natural gas producers and its revenues will be generated almost entirely from fixed fee-based arrangements for gathering, compression, dehydration and treating services. CMP has entered into various agreements with Chesapeake, including a long-term gas gathering agreement at rates consistent with current market pricing. CMP will operate the contributed assets. Certain Chesapeake employees will provide services to CMP through an employee secondment agreement. In return for certain cost reimbursements, CMP will utilize various support functions within Chesapeake, including accounting, human resources and information technology. Subsidiaries of our wholly-owned subsidiary CMD will continue to operate our midstream assets outside of the CMP joint venture. These include natural gas gathering assets in the Fayetteville Shale, Haynesville Shale, Marcellus Shale and other areas in Appalachia. Concurrent with GIPs funding of its interest in the joint venture, CMP closed a new $500 million secured revolving bank credit facility to partially fund capital expenditures associated with the building of additional natural gas gathering systems and for general corporate purposes. Additionally, we amended and restated the existing midstream lending agreement to reduce the total capacity from $460 million to $250 million, among other changes. This separate secured revolving bank credit facility supports CMDs continuing midstream activities. These facilities are described in Note 6. In the Current Quarter, we recorded an $82 million impairment of certain of the gathering systems contributed to CMP prior to the formation of the joint venture, and we expensed $4 million of debt issuance costs associated with the portion of our $460 million credit facility that was reduced to $250 million. The combined impairment of $86 million was included in impairment of natural gas and oil properties and other assets on our condensed consolidated statement of operations. Additionally, an estimated post-closing adjustment related to the joint venture transaction was recorded in the Current Quarter and is expected to be finalized by December31, 2

9.Natural Gas and Oil Propertie

9.Natural Gas and Oil Properties
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
9.Natural Gas and Oil Properties	9. Natural Gas and Oil Properties Volumetric Production Payment On August4, 2009, we sold certain Chesapeake-operated long-lived producing assets in South Texas in our fifth volumetric production payment transaction (VPP) for proceeds of $370 million. The assets included proved reserves of approximately 68 bcfe and net production (at the time of sale) of approximately 55 mmcfe per day. For accounting purposes, cash proceeds from this transaction were reflected as a reduction of natural gas and oil properties with no gain or loss recognized and our proved reserves were reduced accordingly. Joint Ventures In August 2009, we amended our Haynesville Shale joint venture agreement with Plains Exploration Production Company (PXP). As part of the amendment, PXP accelerated the payment of its remaining joint venture drilling carries as of September30, 2009 in exchange for an approximate 10% reduction in the total amount of drilling carry obligations due to Chesapeake and we received cash of $1.1 billion instead of an estimated $1.23 billion in remaining carried drilling costs that PXP would have paid over the next three years under the original agreement. In addition, Chesapeake and PXP agreed to terminate a previous joint venture amendment that granted PXP a one-time option in June 2010 to avoid paying the last $800 million of the drilling carry obligations by conveying 50% of its Haynesville Shale assets to Chesapeake. During the Current Period, we received the benefit of approximately $959 million in drilling carries associated with the Haynesville ($350 million), Fayetteville ($524 million) and Marcellus ($85 million) joint ventures. Divestitures During the Current Period, we sold non-core natural gas and oil assets for proceeds of $278 million.

10.Restructuring

10.Restructuring
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
10.Restructuring	10. Restructuring In the Current Period, we restructured our Charleston, West Virginia-based Eastern Division from a regional corporate headquarters to a regional field office consistent with the business model the company uses elsewhere in the country. As a result, we consolidated the management of our Eastern Division land, legal, accounting, information technology, geoscience and engineering departments into our corporate offices in Oklahoma City. The costs of the reorganization include termination benefits, consolidating or closing facilities and relocating employees. In addition, we had certain other workforce reductions that resulted in termination benefits. We expect virtually all costs associated with our restructuring to be paid by year-end 2009. A summary of Chesapeakes restructuring charges is presented below ($ in millions): Restructuring CostsThrough September30, 2009 Restructuring Costs To Be Incurred Total Restructuring Costs Restructuring Costs: Termination and relocation costs $ 20 $ 2 $ 22 Acceleration of restricted stock awards 9 9 Other associated costs 3 3 Total Restructuring Costs $ 32 $ 2 $ 34

11.Investments

11.Investments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
11.Investments	11. Investments At September30, 2009, investments accounted for under the equity method totaled $388 million and investments accounted for under the cost method totaled $34 million. Following is a summary of our investments: Carrying Value Approximate % Owned Accounting Method September30, 2009 December31, 2008 ($ in millions) Frac Tech Services, Ltd.(a) 20% Equity $ 242 $ 223 Chaparral Energy, Inc.(b)(c) 32% Equity 107 152 DHS Drilling Company(b) 47% Equity 19 Sierra Mid-Con, L.P. 49% Equity 14 12 Gastar Exploration Ltd.(b) 17% Cost 33 11 Mountain Drilling Company(b) 49% Equity 9 Other Cost/Equity 26 18 $ 422 $ 444 (a) The carrying value of our investment in Frac Tech is in excess of our underlying equity in net assets by approximately $145 million as of September30, 2009. This excess amount is attributed to certain intangibles associated with the specialty services provided by Frac Tech and is being amortized over the estimated life of the intangibles. (b) Our investees have been impacted by the dramatic slowing of the worldwide economy and the tightening of the credit markets in the fourth quarter of 2008 and into 2009. The economic weakness has resulted in significantly reduced oil and natural gas prices leading to a meaningful decline in the overall level of activity in the markets served by our investees. Associated with the weakness in performance of certain of the investees, as well as an evaluation of their financial condition and near-term prospects, we recognized during the Current Period that an other than temporary impairment had occurred on March31, 2009 on the following investments: Chaparral Energy of $51 million, DHS Drilling Company of $19 million, Gastar Exploration Ltd. of $70 million and Mountain Drilling Company of $9 million. We have monitored and will continue to monitor the performance of our investments and it is reasonably possible that we may experience additional impairments, although we do not believe that our exposure to future charges would be material to our condensed consolidated results of operations. (c) The carrying value of our investment in Chaparral is in excess of our underlying equity in net assets by approximately $46 million as of September30, 2009. 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.

12.Fair Value Measurements

12.Fair Value Measurements
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
12.Fair Value Measurements	12. Fair Value Measurements Effective January1, 2008, we adopted ASC 820, Fair Value Measurements and Disclosures for our financial assets and liabilities measured on a recurring basis. Our nonfinancial assets and liabilities became subject to the statement effective January1, 2009. This statement establishes a framework for measuring the fair value of assets and liabilities and expands disclosures about fair value measurements. ASC 820 defines fair value as the amount that would be received from the sale of an asset or paid for the transfer of a liability in an orderly transaction between market participants, i.e., an exit price. To estimate an exit price, a three-level hierarchy is used. The fair value hierarchy prioritizes the inputs, which refer broadly to assumptions market participants would use in pricing an asset or a liability, into three levels. Level 1 inputs are unadjusted quoted prices in active markets for identical assets and liabilities and have the highest priority. Level 2 inputs are inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the financial asset or liability and have the lowest priority. Chesapeake uses appropriate valuation techniques based on available inputs, including counterparty quotes, to measure the fair values of its assets and liabilities. Counterparty quotes are generally assessed as a Level 3 input. The following table provides fair value measurement information for financial assets (liabilities) measured at fair value on a recurring basis as of September30, 2009: Quoted Pricesin Active Markets (Level1) Significant Other Observable Inputs (Level2) Significant Unobservable Inputs (Level3) Total FairValue ($ in millions) Financial Assets (Liabilities): Cash equivalents $ 510 $ $ $ 510 Derivatives, net $ $ 351 $ (8 ) $ 343 Investments $ 33 $ $ $ 33 Other long-term assets $ 30 $ $ $ 30 Long-term debt $ $ $ (2,048 ) $ (2,048 ) Other long-term liabilities $ (30 ) $ $ $ (30 ) The following methods and assumptions were used to estimate the fair values of the assets and liabilities in the table above. Level 1 Fair Value Measurements Cash Equivalents. The fair value of cash equivalents is based on quoted market prices. Investments. The fair value of Chesapeakes investment in Gastar Exploration Ltd. common stock is based on a quoted market price. Other Long-Term Assets and Liabilities. The fair value of other long-term assets and liabilities, consisting of obligations under our Deferred Compensation Plan, is based on quoted market prices. Level 2 Fair Value Measurements Derivatives. The fair values of our natural gas, oil and diesel swaps are measured internally using established index prices and other sources. These values are based upon, among other things, futures prices and time to maturity. Derivative transactions are also subject to the risk that c

13.Condensed Consolidating Fina

13.Condensed Consolidating Financial Information
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
13.Condensed Consolidating Financial Information	13. Condensed Consolidating Financial Information Chesapeake Energy Corporation is a holding company and owns no operating assets and has no significant operations independent of its subsidiaries. As of September30, 2008, our obligations under our outstanding senior notes and contingent convertible senior notes listed in Note 6 were fully and unconditionally guaranteed, jointly and severally, by all of our wholly-owned subsidiaries, other than minor subsidiaries, on a senior unsecured basis. Since October 2008, following the restructuring of our non-Appalachian midstream operations, certain of our wholly-owned subsidiaries having significant assets and operations have not guaranteed our outstanding notes. The CMD credit facility and the CMP credit facility referred to in Note 6 each contain a covenant restricting the payment of dividends or distributions or the making of loans to Chesapeake. Set forth below are condensed consolidating financial statements for Chesapeake Energy Corporation (the parent) on a stand-alone, unconsolidated basis, and its combined guarantor and combined non-guarantor subsidiaries as of September30, 2009 and December31, 2008 and for the three and nine months ended September30, 2009 and 2008. The financial information may not necessarily be indicative of results of operations, cash flows or financial position had the subsidiaries operated as independent entities. CONDENSED CONSOLIDATING BALANCE SHEET AS OF SEPTEMBER 30, 2009 ($ in millions) Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CURRENT ASSETS: Cash and cash equivalents $ $ 363 $ 157 $ $ 520 Other 9 1,831 208 (60 ) 1,988 Total Current Assets 9 2,194 365 (60 ) 2,508 PROPERTY AND EQUIPMENT: Natural gas and oil properties, at cost based on full-cost accounting 20,527 205 20,732 Other property and equipment 2,820 2,826 5,646 Total Property and Equipment 23,347 3,031 26,378 Other assets 201 608 24 833 Investments in subsidiaries and intercompany advance 3,738 244 (3,982 ) TOTAL ASSETS $ 3,948 $ 26,393 $ 3,420 $ (4,042 ) $ 29,719 CURRENT LIABILITIES: Current liabilities $ 211 $ 2,231 $ 133 $ (61 ) $ 2,514 Intercompany payable (receivable) from parent (19,118 ) 17,091 2,012 15 Total Current Liabilities (18,907 ) 19,322 2,145 (46 ) 2,514 LONG-TERM LIABILITIES: Lo

14.Recently Issued and Proposed

14.Recently Issued and Proposed Accounting Standards
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
14.Recently Issued and Proposed Accounting Standards	14. Recently Issued and Proposed Accounting Standards The FASB recently issued the following standards which were reviewed by Chesapeake to determine the potential impact on our financial statements upon adoption. On December31, 2008, the Securities and Exchange Commission (SEC) adopted major revisions to its rules governing oil and gas company reporting requirements. These include provisions that permit the use of new technologies to determine proved reserves and that allow companies to disclose their probable and possible reserves to investors. The current rules limit disclosure to only proved reserves. The new disclosure requirements also require companies to report the independence and qualifications of the person primarily responsible for the preparation or audit of reserve estimates, and to file reports when a third party is relied upon to prepare or audit reserves estimates. The new rules also require that oil and gas reserves be reported and the full-cost ceiling value calculated using an average price based upon the prior 12-month period. The new oil and gas reporting requirements are effective for annual reports on Form 10-K for fiscal years ending on or after December31, 2009, with early adoption not permitted. We are in the process of assessing the impact of these new requirements on our financial position, results of operations and financial disclosures. In June 2009, the FASB issued SFAS No.167, Amendments to FASB Interpretation No.46(R).Among other items, SFAS 167 responds to concerns about the application of certain key provisions of FIN 46(R), including those regarding the transparency of the involvement with variable interest entities.SFAS 167 is effective for calendar year companies beginning on January1, 2010.We are currently assessing the impact that adoption of SFAS 167 will have on our financial position, results of operations, cash flows or disclosures. In June2009, the FASB issued Accounting Standards Update (ASU) 2009-01, The FASB Accounting Standards Codification TM and the Hierarchy of Generally Accepted Accounting Principles. This standard replaces SFAS No.162, The Hierarchy of Generally Accepted Accounting Principles, and establishes only two levels of U.S. GAAP, authoritative and nonauthoritative. The FASB Accounting Standards Codification has become the single source of authoritative nongovernmental U.S. GAAP, except for rulesand interpretive releases of the SEC, which are sources of authoritative U.S. GAAP for SEC registrants. This standard is effective for financial statements for interim or annual reporting periods ended after September15, 2009.We began to use the new guidelines and numbering system prescribed by the Codification when referring to GAAP in the Current Quarter. As the Codification was not intended to change or alter existing GAAP, it did not have any impact on our consolidated financial statements. In August 2009, the FASB issued ASU 2009-05, Fair Value Measurements and Disclosures (Topic 820) Measuring Liabilities at Fair Value. This update provides clarification for the fair value measurement of liabilities. ASU 2009-05 is effective for the first reporting period begin

15.Subsequent Events

15.Subsequent Events
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
15.Subsequent Events	15. Subsequent Events Subsequent to September30, 2009, holders of $125 million of our 2.25% Contingent Convertible Senior Notes due 2038 exchanged their senior notes for 3.5million shares of common stock in privately negotiated exchanges. The difference between the fair value of the notes that were exchanged and the fair value of the common stock issued will be recorded as a loss on exchange of debt of approximately $21 million.

Document Information

Document Information
	9 Months Ended Sep. 30, 2009 USD / shares
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 30, 2009	Nov. 04, 2009
Entity [Text Block]
Trading Symbol	CHK
Entity Registrant Name	CHESAPEAKE ENERGY CORP
Entity Central Index Key	0000895126
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		647,707,733