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Derivative and Hedging Activities (Tables) | 3 Months Ended
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Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Notional Amounts of Outstanding Derivative Positions | The estimated fair values of our oil and natural gas derivative instrument assets (liabilities) as of March 31, 2016 and December 31, 2015 are provided below.
|  | March 31, 2016 |  | December 31, 2015
|  | Volume |  | Fair Value |  | Volume |  | Fair Value
|  |  |  | ($ in millions) |  |  |  | ($ in millions)
Oil (mmbbl): |  |  |  |  |  |  |  |
Fixed-price swaps |  | 21.2 |  |  | $ | 78 |  |  | 13.5 |  |  | $ | 144 |
Call options |  | 15.7 |  |  | (4 | ) |  | 19.2 |  |  | (7 | )
Total oil |  | 36.9 |  |  | 74 |  |  | 32.7 |  |  | 137 |
Natural gas (tbtu): |  |  |  |  |  |  |  |
Fixed-price swaps |  | 438 |  |  | 241 |  |  | 500 |  |  | 229 |
Call options |  | 250 |  |  | (65 | ) |  | 295 |  |  | (99 | )
Basis protection swaps |  | 40 |  |  | (9 | ) |  | 57 |  |  | — |
Total natural gas |  | 728 |  |  | 167 |  |  | 852 |  |  | 130 |
Total estimated fair value |  |  |  | $ | 241 |  |  |  |  | $ | 267 |
Schedule Of Derivative Instruments In Condensed Consolidated Balance Sheets | The following table presents the fair value and location of each classification of derivative instrument included in the condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 on a gross basis and after same-counterparty netting:
Balance Sheet Classification |  | Gross Fair Value |  | Amounts Netted in Condensed Consolidated Balance Sheet |  | Net Fair Value Presented in Condensed Consolidated Balance Sheet
|  | ($ in millions)
As of March 31, 2016 |  |  |  |  |  |
Commodity Contracts: |  |  |  |  |  |
Short-term derivative asset |  | $ | 345 |  |  | $ | (49 | ) |  | $ | 296 |
Short-term derivative liability |  | (92 | ) |  | 49 |  |  | (43 | )
Long-term derivative liability |  | (12 | ) |  | — |  |  | (12 | )
Total commodity contracts |  | 241 |  |  | — |  |  | 241 |
Foreign Currency Contracts:(a) |  |  |  |  |  |
Short-term derivative liability |  | (43 | ) |  | — |  |  | (43 | )
Total foreign currency contracts |  | (43 | ) |  | — |  |  | (43 | )
Supply Contracts: |  |  |  |  |  |
Short-term derivative asset |  | 54 |  |  | — |  |  | 54 |
Long-term derivative asset |  | 263 |  |  | — |  |  | 263 |
Total supply contracts |  | 317 |  |  | — |  |  | 317 |
Total derivatives |  | $ | 515 |  |  | $ | — |  |  | $ | 515 |
As of December 31, 2015 |  |  |  |  |  |
Commodity Contracts: |  |  |  |  |  |
Short-term derivative asset |  | $ | 381 |  |  | $ | (66 | ) |  | $ | 315 |
Short-term derivative liability |  | (106 | ) |  | 66 |  |  | (40 | )
Long-term derivative liability |  | (8 | ) |  | — |  |  | (8 | )
Total commodity contracts |  | 267 |  |  | — |  |  | 267 |
Foreign Currency Contracts:(a) |  |  |  |  |  |
Long-term derivative liability |  | (52 | ) |  | — |  |  | (52 | )
Total foreign currency contracts |  | (52 | ) |  | — |  |  | (52 | )
Supply Contracts: |  |  |  |  |  |
Short-term derivative asset |  | 51 |  |  | — |  |  | 51 |
Long-term derivative asset |  | 246 |  |  | — |  |  | 246 |
Total supply contracts |  | 297 |  |  | — |  |  | 297 |
Total derivatives |  | $ | 512 |  |  | $ | — |  |  | $ | 512 |
____________________________________________
(a) | Designated as cash flow hedging instruments
Schedule of Derivative Instruments, Natural Gas and Oil Sales | The components of oil, natural gas and NGL revenues for the Current Quarter and the Prior Quarter are presented below.
|  | Three Months Ended March 31,
|  | 2016 |  | 2015
|  | ($ in millions)
Oil, natural gas and NGL revenues |  | $ | 812 |  |  | $ | 1,382 |
Gains (losses) on undesignated oil and natural gas derivatives |  | 192 |  |  | 178 |
Losses on terminated cash flow hedges |  | (11 | ) |  | (17 | )
Total oil, natural gas and NGL revenues |  | $ | 993 |  |  | $ | 1,543 |
The components of marketing, gathering and compression revenues for the Current Quarter and the Prior Quarter are presented below.
|  | Three Months Ended March 31,
|  | 2016 |  | 2015
|  | ($ in millions)
Marketing, gathering and compression revenues |  | $ | 940 |  |  | $ | 1,675 |
Gains on undesignated supply contract derivatives |  | 20 |  |  | — |
Total marketing, gathering and compression revenues |  | $ | 960 |  |  | $ | 1,675 |
Schedule of Derivative Instruments, Marketing, Gathering and Compression Sales | The components of oil, natural gas and NGL revenues for the Current Quarter and the Prior Quarter are presented below.
|  | Three Months Ended March 31,
|  | 2016 |  | 2015
|  | ($ in millions)
Oil, natural gas and NGL revenues |  | $ | 812 |  |  | $ | 1,382 |
Gains (losses) on undesignated oil and natural gas derivatives |  | 192 |  |  | 178 |
Losses on terminated cash flow hedges |  | (11 | ) |  | (17 | )
Total oil, natural gas and NGL revenues |  | $ | 993 |  |  | $ | 1,543 |
The components of marketing, gathering and compression revenues for the Current Quarter and the Prior Quarter are presented below.
|  | Three Months Ended March 31,
|  | 2016 |  | 2015
|  | ($ in millions)
Marketing, gathering and compression revenues |  | $ | 940 |  |  | $ | 1,675 |
Gains on undesignated supply contract derivatives |  | 20 |  |  | — |
Total marketing, gathering and compression revenues |  | $ | 960 |  |  | $ | 1,675 |
Interest Income And Interest Expense Disclosure | The components of interest expense for the Current Quarter and the Prior Quarter are presented below.
|  | Three Months Ended March 31,
|  | 2016 |  | 2015
|  | ($ in millions)
Interest expense on senior notes |  | $ | 115 |  |  | $ | 171 |
Amortization of loan discount, issuance costs and other |  | 10 |  |  | 11 |
Interest expense on credit facilities |  | 5 |  |  | 3 |
Gains on terminated fair value hedges |  | — |  |  | (1 | )
(Gains) losses on undesignated interest rate derivatives |  | — |  |  | (10 | )
Capitalized interest |  | (68 | ) |  | (123 | )
Total interest expense |  | $ | 62 |  |  | $ | 51 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | 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 March 31,
|  | 2016 |  | 2015
|  | Before Tax |  | After Tax |  | Before Tax |  | After Tax
|  | ($ in millions)
Balance, beginning of period |  | $ | (160 | ) |  | $ | (99 | ) |  | $ | (231 | ) |  | $ | (143 | )
Net change in fair value |  | (7 | ) |  | (4 | ) |  | (2 | ) |  | (1 | )
Losses reclassified to income |  | 11 |  |  | 4 |  |  | 17 |  |  | 10 |
Balance, end of period |  | $ | (156 | ) |  | $ | (99 | ) |  | $ | (216 | ) |  | $ | (134 | )
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table provides information for financial assets (liabilities) measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015:
|  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total Fair Value
|  |  |  | ($ in millions) |  |
As of March 31, 2016 |  |  |  |  |  |  |  |
Derivative Assets (Liabilities): |  |  |  |  |  |  |  |
Commodity assets |  | $ | — |  |  | $ | 325 |  |  | $ | 20 |  |  | $ | 345 |
Commodity liabilities |  | — |  |  | (36 | ) |  | (68 | ) |  | (104 | )
Foreign currency liabilities |  | — |  |  | (43 | ) |  | — |  |  | (43 | )
Supply contract assets |  | — |  |  | — |  |  | 317 |  |  | 317 |
Total derivatives |  | $ | — |  |  | $ | 246 |  |  | $ | 269 |  |  | $ | 515 |
As of December 31, 2015 |  |  |  |  |  |  |  |
Derivative Assets (Liabilities): |  |  |  |  |  |  |  |
Commodity assets |  | $ | — |  |  | $ | 372 |  |  | $ | 9 |  |  | $ | 381 |
Commodity liabilities |  | — |  |  | (14 | ) |  | (100 | ) |  | (114 | )
Foreign currency liabilities |  | — |  |  | (52 | ) |  | — |  |  | (52 | )
Supply contract assets |  | — |  |  | — |  |  | 297 |  |  | 297 |
Total derivatives |  | $ | — |  |  | $ | 306 |  |  | $ | 206 |  |  | $ | 512 |
A summary of the changes in the fair values of Chesapeake’s financial assets (liabilities) classified as Level 3 during the Current Quarter and the Prior Quarter is presented below.
|  | Commodity Derivatives |  | Supply Contracts
|  | ($ in millions)
Beginning balance as of December 31, 2015 |  | $ | (91 | ) |  | $ | 297 |
Total gains (losses) (unrealized): |  |  |  |
Included in earnings(a) |  | 25 |  |  | 33 |
Total purchases, issuances, sales and settlements: |  |  |  |
Settlements |  | 18 |  |  | (13 | )
Ending balance as of March 31, 2016 |  | $ | (48 | ) |  | $ | 317 |
Beginning balance as of December 31, 2014 |  | $ | (54 | ) |  | $ | 1 |
Total gains (losses) (unrealized): |  |  |  |
Included in earnings(a) |  | 78 |  |  | — |
Total purchases, issuances, sales and settlements: |  |  |  |
Settlements |  | (93 | ) |  | — |
Transfers(b) |  | — |  |  | — |
Ending balance as of March 31, 2015 |  | $ | (69 | ) |  | $ | 1 |
___________________________________________
(a) |  | Oil, Natural Gas and NGL Sales |  | Marketing, Gathering and Compression Revenue
|  | 2016 |  | 2015 |  | 2016 |  | 2015
|  | ($ in millions)
Total gains (losses) included in earnings for the period |  | $ | 25 |  |  | $ | 78 |  |  | $ | 20 |  |  | $ | — |
Change in unrealized gains (losses) related to assets still held at reporting date |  | $ | 21 |  |  | $ | 74 |  |  | $ | 20 |  |  | $ | — |
(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.
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 March 31, 2016 and December 31, 2015:
|  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total Fair Value
|  |  |  | ($ in millions) |  |
As of March 31, 2016 |  |  |  |  |  |  |  |
Financial Assets (Liabilities): |  |  |  |  |  |  |  |
Other current assets |  | $ | 48 |  |  | $ | — |  |  | $ | — |  |  | $ | 48 |
Other current liabilities |  | (50 | ) |  | — |  |  | — |  |  | (50 | )
Total |  | $ | (2 | ) |  | $ | — |  |  | $ | — |  |  | $ | (2 | )
As of December 31, 2015 |  |  |  |  |  |  |  |
Financial Assets (Liabilities): |  |  |  |  |  |  |  |
Other current assets |  | $ | 50 |  |  | $ | — |  |  | $ | — |  |  | $ | 50 |
Other current liabilities |  | (51 | ) |  | — |  |  | — |  |  | (51 | )
Total |  | $ | (1 | ) |  | $ | — |  |  | $ | — |  |  | $ | (1 | )
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides information for financial assets (liabilities) measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015:
|  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total Fair Value
|  |  |  | ($ in millions) |  |
As of March 31, 2016 |  |  |  |  |  |  |  |
Derivative Assets (Liabilities): |  |  |  |  |  |  |  |
Commodity assets |  | $ | — |  |  | $ | 325 |  |  | $ | 20 |  |  | $ | 345 |
Commodity liabilities |  | — |  |  | (36 | ) |  | (68 | ) |  | (104 | )
Foreign currency liabilities |  | — |  |  | (43 | ) |  | — |  |  | (43 | )
Supply contract assets |  | — |  |  | — |  |  | 317 |  |  | 317 |
Total derivatives |  | $ | — |  |  | $ | 246 |  |  | $ | 269 |  |  | $ | 515 |
As of December 31, 2015 |  |  |  |  |  |  |  |
Derivative Assets (Liabilities): |  |  |  |  |  |  |  |
Commodity assets |  | $ | — |  |  | $ | 372 |  |  | $ | 9 |  |  | $ | 381 |
Commodity liabilities |  | — |  |  | (14 | ) |  | (100 | ) |  | (114 | )
Foreign currency liabilities |  | — |  |  | (52 | ) |  | — |  |  | (52 | )
Supply contract assets |  | — |  |  | — |  |  | 297 |  |  | 297 |
Total derivatives |  | $ | — |  |  | $ | 306 |  |  | $ | 206 |  |  | $ | 512 |
A summary of the changes in the fair values of Chesapeake’s financial assets (liabilities) classified as Level 3 during the Current Quarter and the Prior Quarter is presented below.
|  | Commodity Derivatives |  | Supply Contracts
|  | ($ in millions)
Beginning balance as of December 31, 2015 |  | $ | (91 | ) |  | $ | 297 |
Total gains (losses) (unrealized): |  |  |  |
Included in earnings(a) |  | 25 |  |  | 33 |
Total purchases, issuances, sales and settlements: |  |  |  |
Settlements |  | 18 |  |  | (13 | )
Ending balance as of March 31, 2016 |  | $ | (48 | ) |  | $ | 317 |
Beginning balance as of December 31, 2014 |  | $ | (54 | ) |  | $ | 1 |
Total gains (losses) (unrealized): |  |  |  |
Included in earnings(a) |  | 78 |  |  | — |
Total purchases, issuances, sales and settlements: |  |  |  |
Settlements |  | (93 | ) |  | — |
Transfers(b) |  | — |  |  | — |
Ending balance as of March 31, 2015 |  | $ | (69 | ) |  | $ | 1 |
___________________________________________
(a) |  | Oil, Natural Gas and NGL Sales |  | Marketing, Gathering and Compression Revenue
|  | 2016 |  | 2015 |  | 2016 |  | 2015
|  | ($ in millions)
Total gains (losses) included in earnings for the period |  | $ | 25 |  |  | $ | 78 |  |  | $ | 20 |  |  | $ | — |
Change in unrealized gains (losses) related to assets still held at reporting date |  | $ | 21 |  |  | $ | 74 |  |  | $ | 20 |  |  | $ | — |
(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.
Fair Value Inputs, Assets, Quantitative Information | The following table presents quantitative information about Level 3 inputs used in the fair value measurement of our commodity derivative contracts at fair value as of March 31, 2016:
Instrument Type |  | Unobservable Input |  | Range |  | Weighted Average |  | Fair Value March 31, 2016
|  |  |  |  |  |  |  | ($ in millions)
Oil trades(a) |  | Oil price volatility curves |  | 26.58% – 37.92% |  | 33.98% |  | $ | (4 | )
Supply contracts(b) |  | Oil price volatility curves |  | 20.72% – 43.45% |  | 25.61% |  | $ | 317 |
Natural gas trades(a) |  | Natural gas price volatility curves |  | 19.69% – 47.43% |  | 32.54% |  | $ | (44 | )
___________________________________________
(a) | Fair value is based on an estimate derived from option models.
(b) | Fair value is based on an estimate derived from industry standard methodologies which consider historical relationships among various commodities, modeled market prices, time value and volatility factors.

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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19279-110258 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19190-110258 + Details
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