XML 22 R10.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Basis of Presentation and Significant Accounting Policies (Notes) | 3 Months Ended
--- | ---
Mar. 31, 2017
Accounting Policies [Abstract] |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies Disclosure | Basis of Presentation Basis of Presentation The accompanying condensed consolidated financial statements of Chesapeake Energy Corporation (“Chesapeake” or the “Company”) were prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and include the accounts of our direct and indirect wholly owned subsidiaries and entities in which Chesapeake has a controlling financial interest. Intercompany accounts and balances have been eliminated. These financial statements were prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all disclosures required for financial statements prepared in conformity with U.S. GAAP. This Form 10-Q relates to the three months ended March 31, 2017 (the “Current Quarter”) and the three months ended March 31, 2016 (the “Prior Quarter”). Chesapeake’s annual report on Form 10-K for the year ended December 31, 2016 (“2016 Form 10-K”) includes certain definitions and a summary of significant accounting policies and should be read in conjunction with this Form 10-Q. 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 Current Quarter are not necessarily indicative of the results to be expected for the full year. Risks and Uncertainties Our ability to grow, make capital expenditures and service our debt depends primarily upon the prices we receive for the oil, natural gas and natural gas liquids (NGL) we sell. Substantial expenditures are required to replace reserves, sustain production and fund our business plans. Historically, oil and natural gas prices have been very volatile, and may be subject to wide fluctuations in the future. The substantial decline in oil, natural gas and NGL prices from 2014 levels has negatively affected the amount of liquidity we have available for capital expenditures and debt service. A substantial or extended decline in oil, natural gas and NGL prices could have a material impact on our financial position, results of operations, cash flows and on the quantities of reserves that we may economically produce. Other risks and uncertainties that could affect us in a low commodity price environment include, but are not limited to, counterparty credit risk for our receivables, access to capital markets, regulatory risks and our ability to meet financial ratios and covenants in our financing agreements. Revision of Prior Quarter During the fourth quarter of 2016, we identified certain errors to the basis price differentials used in calculating the impairment of oil and natural gas properties and oil, natural gas and NGL depreciation, depletion and amortization for each of the first three interim periods in 2016. As disclosed within our 2016 Form 10-K, it was determined that these errors were not material to our previously issued 2016 interim financial statements. Accordingly, the correction of these errors and another immaterial previously identified error was reflected in the quarterly unaudited financial data included within our 2016 Form 10-K. These revisions have been reflected in the comparative 2016 condensed consolidated financi al statements presented herein. See Evaluation of Disclosure Controls and Procedure s in Item 4 of this Form 10-Q. The following table reconciles the amounts as previously reported in the applicable financial statement to the corresponding revised amounts:
|  | Three Months Ended March 31, 2016
|  | As Previously Reported |  | Revision Adjustment |  | As Revised
|  | ($ in millions)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |  |  |  |  |  |
Provision for legal contingencies |  | $ | 22 |  |  | $ | 11 |  |  | $ | 33 |
Oil, natural gas and NGL depreciation, depletion and amortization |  | $ | 271 |  |  | $ | (8 | ) |  | $ | 263 |
Impairment of oil and natural gas properties |  | $ | 853 |  |  | $ | 144 |  |  | $ | 997 |
Total operating expenses |  | $ | 2,905 |  |  | $ | 147 |  |  | $ | 3,052 |
Loss from operations |  | $ | (952 | ) |  | $ | (147 | ) |  | $ | (1,099 | )
Loss before income taxes |  | $ | (921 | ) |  | $ | (147 | ) |  | $ | (1,068 | )
Net loss |  | $ | (921 | ) |  | $ | (147 | ) |  | $ | (1,068 | )
Net loss attributable to Chesapeake |  | $ | (921 | ) |  | $ | (147 | ) |  | $ | (1,068 | )
Net loss available to common stockholders |  | $ | (964 | ) |  | $ | (147 | ) |  | $ | (1,111 | )
Earnings (loss) per common share basic |  | $ | (1.44 | ) |  | $ | (0.22 | ) |  | $ | (1.66 | )
Earnings (loss) per common share diluted |  | $ | (1.44 | ) |  | $ | (0.22 | ) |  | $ | (1.66 | )
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) |  |  |  |  |  |
Net loss |  | $ | (921 | ) |  | $ | (147 | ) |  | $ | (1,068 | )
Comprehensive loss |  | $ | (921 | ) |  | $ | (147 | ) |  | $ | (1,068 | )
Comprehensive loss attributable to Chesapeake |  | $ | (921 | ) |  | $ | (147 | ) |  | $ | (1,068 | )
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |  |  |  |  |  |
Net loss |  | $ | (921 | ) |  | $ | (147 | ) |  | $ | (1,068 | )
Depreciation, depletion and amortization |  | $ | 300 |  |  | $ | (8 | ) |  | $ | 292 |
Impairment of oil and natural gas properties |  | $ | 853 |  |  | $ | 144 |  |  | $ | 997 |
Provision for legal contingencies |  | $ | 22 |  |  | $ | 11 |  |  | $ | 33 |
Net cash used in operating activities |  | $ | (421 | ) |  | $ | — |  |  | $ | (421 | )

X
- References No definition available. + Details
Name: | us-gaap_AccountingPoliciesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the general note to the financial statements for the reporting entity which may include, descriptions of the basis of presentation, business description, significant accounting policies, consolidations, reclassifications, new pronouncements not yet adopted and changes in accounting principles. + References No definition available. + Details
Name: | us-gaap_OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration