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Derivative and Hedging Activities (Tables)
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6 Months Ended |
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Jun. 30, 2014
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Schedule of Derivative Instruments Included in Trading Activities [Table Text Block] |
The estimated fair values of our natural gas and oil derivative instrument assets (liabilities) as of June 30, 2014 and December 31, 2013 are provided below. | | | | | | | | | | | | | | | | | | June 30, 2014 | | December 31, 2013 | | | Volume | | Fair Value | | Volume | | Fair Value | | | | | ($ in millions) | | | | ($ in millions) | Natural gas (tbtu): | | | | | | | | | Fixed-price swaps | | 293 |
| | $ | (75 | ) | | 448 |
| | $ | (23 | ) | Three-way collars | | 335 |
| | (27 | ) | | 288 |
| | (7 | ) | Collars | | 22 |
| | 4 |
| | — |
| | — |
| Call options | | 193 |
| | (195 | ) | | 193 |
| | (210 | ) | Call swaptions | | — |
| | — |
| | 12 |
| | — |
| Basis protection swaps | | 106 |
| | 15 |
| | 68 |
| | 3 |
| Total natural gas | | 949 |
| | (278 | ) | | 1,009 |
| | (237 | ) | Oil (mmbbl): | | | | | | | | | Fixed-price swaps | | 18.3 |
| | (146 | ) | | 25.3 |
| | (50 | ) | Three-way collars | | 4.4 |
| | (12 | ) | | — |
| | — |
| Call options | | 38.9 |
| | (320 | ) | | 42.5 |
| | (265 | ) | Basis protection swaps | | 0.2 |
| | 1 |
| | 0.4 |
| | 1 |
| Total oil | | 61.8 |
| | (477 | ) | | 68.2 |
| | (314 | ) | Total estimated fair value | | | | $ | (755 | ) | | | | $ | (551 | ) |
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| Schedule Of Derivative Instruments In Condensed Consolidated Balance Sheets [Table Text Block] |
The following table presents the fair value and location of each classification of derivative instrument included in the condensed consolidated balance sheets as of June 30, 2014 and December 31, 2013 on a gross basis and after same-counterparty netting: | | | | | | | | | | | | | | | | June 30, 2014 | Balance Sheet Classification | | Gross Fair Value | | Amounts Netted in Condensed Consolidated Balance Sheet | | Net Fair Value Presented in Condensed Consolidated Balance Sheet | | | ($ in millions) | Commodity Contracts | | | | | | | Short-term derivative asset | | $ | 56 |
| | $ | (55 | ) | | $ | 1 |
| Long-term derivative asset | | 3 |
| | (3 | ) | | — |
| Short-term derivative liability | | (469 | ) | | 55 |
| | (414 | ) | Long-term derivative liability | | (345 | ) | | 3 |
| | (342 | ) | Total commodity contracts | | (755 | ) | | — |
| | (755 | ) | | | | | | | | Interest Rate Contracts | | | | | | | Short-term derivative liability | | (1 | ) | | — |
| | (1 | ) | Long-term derivative liability | | (47 | ) | | — |
| | (47 | ) | Total interest rate contracts | | (48 | ) | | — |
| | (48 | ) | | | | | | | | Foreign Currency Contracts(a) | | | | | | | Long-term derivative asset | | 6 |
| | — |
| | 6 |
| Total foreign currency contracts | | 6 |
| | — |
| | 6 |
| | | | | | | | Total Derivatives | | $ | (797 | ) | | $ | — |
| | $ | (797 | ) |
| | | | | | | | | | | | | | | | December 31, 2013 | Balance Sheet Classification | | Gross Fair Value | | Amounts Netted in Condensed Consolidated Balance Sheet | | Net Fair Value Presented in Condensed Consolidated Balance Sheet | | | ($ in millions) | Commodity Contracts | | | | | | | Short-term derivative asset | | $ | 29 |
| | $ | (29 | ) | | $ | — |
| Long-term derivative asset | | 11 |
| | (9 | ) | | 2 |
| Short-term derivative liability | | (231 | ) | | 29 |
| | (202 | ) | Long-term derivative liability | | (362 | ) | | 9 |
| | (353 | ) | Total commodity contracts | | (553 | ) | | — |
| | (553 | ) | | | | | | | | Interest Rate Contracts | | | | | | | Short-term derivative liability | | (6 | ) | | — |
| | (6 | ) | Long-term derivative liability | | (92 | ) | | — |
| | (92 | ) | Total interest rate contracts | | (98 | ) | | — |
| | (98 | ) | | | | | | | | Foreign Currency Contracts(a) | | | | | | | Long-term derivative asset | | 2 |
| | — |
| | 2 |
| Total foreign currency contracts | | 2 |
| | — |
| | 2 |
| | | | | | | | Total Derivatives | | $ | (649 | ) | | $ | — |
| | $ | (649 | ) |
____________________________________________ | | (a) | Designated as cash flow hedging instruments. |
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| Schedule of Derivative Instruments [Table Text Block] |
The components of natural gas, oil and NGL sales for the Current Quarter, the Prior Quarter, the Current Period and the Prior Period are presented below. | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | | 2014 | | 2013 | | 2014 | | 2013 | | | ($ in millions) | Natural gas, oil and NGL sales | | $ | 1,917 |
| | $ | 1,869 |
| | $ | 4,065 |
| | $ | 3,464 |
| Gains (losses) on undesignated natural gas, oil and NGL derivatives | | (210 | ) | | 535 |
| | (574 | ) | | 412 |
| Gains (losses) on terminated cash flow hedges | | (3 | ) | | 2 |
| | (20 | ) | | (18 | ) | Total natural gas, oil and NGL sales | | $ | 1,704 |
| | $ | 2,406 |
| | $ | 3,471 |
| | $ | 3,858 |
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| Interest Income And Interest Expense Disclosure [Table Text Block] |
The components of interest expense for the Current Quarter, the Prior Quarter, the Current Period and the Prior Period are presented below. | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | | 2014 | | 2013 | | 2014 | | 2013 | | | ($ in millions) | Interest expense on senior notes | | $ | 184 |
| | $ | 194 |
| | $ | 364 |
| | $ | 380 |
| Interest expense on term loans | | 7 |
| | 29 |
| | 36 |
| | 58 |
| Amortization of loan discount, issuance costs and other | | 16 |
| | 30 |
| | 35 |
| | 48 |
| Interest expense on credit facilities | | 9 |
| | 11 |
| | 17 |
| | 22 |
| Gains on terminated fair value hedges | | (1 | ) | | (2 | ) | | (2 | ) | | (3 | ) | (Gains) losses on undesignated interest rate derivatives | | (33 | ) | | 52 |
| | (51 | ) | | 57 |
| Capitalized interest | | (155 | ) | | (210 | ) | | (333 | ) | | (438 | ) | Total interest expense | | $ | 27 |
| | $ | 104 |
| | $ | 66 |
| | $ | 124 |
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| Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] |
For the Current Period and the Prior Period, changes in accumulated other comprehensive income (loss) by component, net of tax, are detailed below. | | | | | | | | | | | | | | | | Net Gains (Losses) on Cash Flow Hedges | | Net Gains (Losses) on Investments | | Total | | | ($ in millions) | Balance, December 31, 2013 | | $ | (167 | ) | | $ | 5 |
| | $ | (162 | ) | Other comprehensive income before reclassifications | | 3 |
| | — |
| | 3 |
| Amounts reclassified from accumulated other comprehensive income | | 10 |
| | (5 | ) | | 5 |
| Net other comprehensive income | | 13 |
| | (5 | ) | | 8 |
| Balance, June 30, 2014 | | $ | (154 | ) | | $ | — |
| | $ | (154 | ) |
| | | | | | | | | | | | | | | | Net Gains (Losses) on Cash Flow Hedges | | Net Gains (Losses) on Investments | | Total | | | ($ in millions) | Balance, December 31, 2012 | | $ | (189 | ) | | $ | 7 |
| | $ | (182 | ) | Other comprehensive income before reclassifications | | — |
| | (5 | ) | | (5 | ) | Amounts reclassified from accumulated other comprehensive income | | 11 |
| | 6 |
| | 17 |
| Net other comprehensive income | | 11 |
| | 1 |
| | 12 |
| Balance, June 30, 2013 | | $ | (178 | ) | | $ | 8 |
| | $ | (170 | ) |
A reconciliation of the changes in accumulated other comprehensive income (loss) in our condensed consolidated statements of stockholders’ equity related to our cash flow hedges is presented below. | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | | 2014 | | 2013 | | | Before Tax | | After Tax | | Before Tax | | After Tax | | | ($ in millions) | Balance, beginning of period | | $ | (247 | ) | | $ | (153 | ) | | $ | (287 | ) | | $ | (178 | ) | Net change in fair value | | 1 |
| | — |
| | 2 |
| | 1 |
| Gains (losses) reclassified to income | | 3 |
| | (1 | ) | | (1 | ) | | (1 | ) | Balance, end of period | | $ | (243 | ) | | $ | (154 | ) | | $ | (286 | ) | | $ | (178 | ) |
| | | | | | | | | | | | | | | | | | | | Six Months Ended
June 30, | | | 2014 | | 2013 | | | Before Tax | | After Tax | | Before Tax | | After Tax | | | ($ in millions) | Balance, beginning of period | | $ | (269 | ) | | $ | (167 | ) | | $ | (304 | ) | | $ | (189 | ) | Net change in fair value | | 6 |
| | 3 |
| | — |
| | — |
| Losses reclassified to income | | 20 |
| | 10 |
| | 18 |
| | 11 |
| Balance, end of period | | $ | (243 | ) | | $ | (154 | ) | | $ | (286 | ) | | $ | (178 | ) |
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| Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] |
The following table provides information for financial assets (liabilities) measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013: | | | | | | | | | | | | | | | | | | As of June 30, 2014 | | Quoted Prices in Active Markets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total Fair Value | | | | | ($ in millions) | | | Derivative Assets (Liabilities): | | | | | | | | | Commodity assets | | $ | — |
| | $ | 38 |
| | $ | 22 |
| | $ | 60 |
| Commodity liabilities | | — |
| | (244 | ) | | (572 | ) | | (816 | ) | Interest rate liabilities | | — |
| | (48 | ) | | — |
| | (48 | ) | Foreign currency assets | | — |
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| 6 |
| | — |
| | 6 |
| Total derivatives | | $ | — |
| | $ | (248 | ) | | $ | (550 | ) | | $ | (798 | ) |
| | | | | | | | | | | | | | | | | | As of December 31, 2013 | | Quoted Prices in Active Markets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total Fair Value | | | | | ($ in millions) | | | Derivative Assets (Liabilities): | | | | | | | | | Commodity assets | | $ | — |
| | $ | 25 |
| | $ | 15 |
| | $ | 40 |
| Commodity liabilities | | — |
| | (100 | ) | | (493 | ) | | (593 | ) | Interest rate liabilities | | — |
| | (98 | ) | | — |
| | (98 | ) | Foreign currency assets | | — |
| | 2 |
| | — |
| | 2 |
| Total derivatives | | $ | — |
| | $ | (171 | ) | | $ | (478 | ) | | $ | (649 | ) |
The following table provides fair value measurement information for the above-noted financial assets (liabilities) measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013: | | | | | | | | | | | | | | | | | | As of June 30, 2014 | | Quoted Prices in Active Markets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total Fair Value | | | | | ($ in millions) | | | Financial Assets (Liabilities): | | | | | | | | | Other current assets | | $ | 57 |
| | $ | — |
| | $ | — |
| | $ | 57 |
| Other current liabilities | | (58 | ) | | — |
| | — |
| | (58 | ) | Total | | $ | (1 | ) | | $ | — |
| | $ | — |
| | $ | (1 | ) |
| | | | | | | | | | | | | | | | | | As of December 31, 2013 | | Quoted Prices in Active Markets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Total Fair Value | | | | | ($ in millions) | | | Financial Assets (Liabilities): | | | | | | | | | Other current assets | | $ | 80 |
| | $ | — |
| | $ | — |
| | $ | 80 |
| Other current liabilities | | (82 | ) | | — |
| | — |
| | (82 | ) | Total | | $ | (2 | ) | | $ | — |
| | $ | — |
| | $ | (2 | ) |
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| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] |
A summary of the changes in the fair values of Chesapeake’s financial assets (liabilities) classified as Level 3 during the Current Period and the Prior Period is presented below. | | | | | | | | | | | | Derivatives | | | Commodity | | Interest Rate | | | ($ in millions) | Beginning Balance as of January 1, 2014 | | $ | (478 | ) | | $ | — |
| Total gains (losses) (realized/unrealized): | | | | | Included in earnings(a) | | (173 | ) | | — |
| Total purchases, issuances, sales and settlements: | | | | | Settlements | | 105 |
| | — |
| Transfers(b) | | (4 | ) | | — |
| Ending Balance as of June 30, 2014 | | $ | (550 | ) | | $ | — |
| | | | | | Beginning Balance as of January 1, 2013 | | $ | (1,016 | ) | | $ | — |
| Total gains (losses) (realized/unrealized): | | | | | Included in earnings(a) | | 362 |
| | (1 | ) | Total purchases, issuances, sales and settlements: | | | | | Sales | | — |
| | 1 |
| Settlements | | 60 |
| | — |
| Ending Balance as of June 30, 2013 | | $ | (594 | ) | | $ | — |
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___________________________________________ | | | | | | | | | | | | | | | | | | (a) | | Natural Gas, Oil and NGL Sales | | Interest Expense | | | | 2014 | | 2013 | | 2014 | | 2013 | | | ($ in millions) | Total gains (losses) included in earnings for the period | | $ | (173 | ) | | $ | 362 |
| | $ | — |
| | $ | (1 | ) | Change in unrealized gains (losses) related to assets still held at reporting date | | $ | (133 | ) | | $ | 353 |
| | $ | — |
| | $ | — |
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| | (b) | The values related to basis swaps were transferred from Level 3 to Level 2 as a result of our ability to begin using data readily available in the public market to corroborate our estimated fair values. |
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| Fair Value Inputs, Assets, Quantitative Information [Table Text Block] |
Quantitative Disclosures about Unobservable Inputs for Level 3 Fair Value Measurements | | | | | | | | | | | | Instrument Type | | Unobservable Input | | Range | | Weighted Average | | Fair Value June 30, 2014(a) | | | | | | | | | ($ in millions) | Oil trades | | Oil price volatility curves | | 9.12% - 18.73% | | 14.63% | | $ | (332 | ) | Natural gas trades | | Natural gas price volatility curves | | 19.54% - 38.70% | | 24.43% | | $ | (218 | ) |
___________________________________________ | | (a) | Fair value is based on an estimate derived from option models. |
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