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Derivative and Hedging Activities (Tables) | 3 Months Ended
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Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Notional Amounts of Outstanding Derivative Positions | The estimated fair values of our oil, natural gas and NGL derivative instrument assets (liabilities) as of March 31, 2017 and December 31, 2016 are provided below.
|  | March 31, 2017 |  | December 31, 2016
|  | Volume |  | Fair Value |  | Volume |  | Fair Value
|  |  |  | ($ in millions) |  |  |  | ($ in millions)
Oil (mmbbl): |  |  |  |  |  |  |  |
Fixed-price swaps |  | 19 |  |  | $ | (26 | ) |  | 23 |  |  | $ | (140 | )
Call options |  | 4 |  |  | — |  |  | 5 |  |  | (1 | )
Total oil |  | 23 |  |  | (26 | ) |  | 28 |  |  | (141 | )
Natural gas (tbtu): |  |  |  |  |  |  |  |
Fixed-price swaps |  | 622 |  |  | (126 | ) |  | 719 |  |  | (349 | )
Collars |  | 48 |  |  | 3 |  |  | 60 |  |  | (9 | )
Call options |  | 102 |  |  | — |  |  | 114 |  |  | — |
Basis protection swaps |  | 18 |  |  | (2 | ) |  | 31 |  |  | (5 | )
Total natural gas |  | 790 |  |  | (125 | ) |  | 924 |  |  | (363 | )
NGL (mmgal): |  |  |  |  |  |  |  |
Fixed-price swaps |  | 27 |  |  | 1 |  |  | 53 |  |  | — |
Total estimated fair value |  |  |  | $ | (150 | ) |  |  |  | $ | (504 | )
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, 2017 and December 31, 2016 on a gross basis and after same-counterparty netting:
Balance Sheet Classification |  | Gross Fair Value |  | Amounts Netted in the Condensed Consolidated Balance Sheets |  | Net Fair Value Presented in the Condensed Consolidated Balance Sheet
|  | ($ in millions)
As of March 31, 2017 |  |  |  |  |  |
Commodity Contracts: |  |  |  |  |  |
Short-term derivative asset |  | $ | 5 |  |  | $ | (4 | ) |  | $ | 1 |
Short-term derivative liability |  | (161 | ) |  | 4 |  |  | (157 | )
Long-term derivative asset |  | 8 |  |  | (1 | ) |  | 7 |
Long-term derivative liability |  | (2 | ) |  | 1 |  |  | (1 | )
Total commodity contracts |  | (150 | ) |  | — |  |  | (150 | )
Total derivatives |  | $ | (150 | ) |  | $ | — |  |  | $ | (150 | )
As of December 31, 2016 |  |  |  |  |  |
Commodity Contracts: |  |  |  |  |  |
Short-term derivative asset |  | $ | 1 |  |  | $ | (1 | ) |  | $ | — |
Short-term derivative liability |  | (490 | ) |  | 1 |  |  | (489 | )
Long-term derivative liability |  | (15 | ) |  | — |  |  | (15 | )
Total commodity contracts |  | (504 | ) |  | — |  |  | (504 | )
Foreign Currency Contracts:(a) |  |  |  |  |  |
Long-term derivative liability |  | (73 | ) |  | — |  |  | (73 | )
Total foreign currency contracts |  | (73 | ) |  | — |  |  | (73 | )
Total derivatives |  | $ | (577 | ) |  | $ | — |  |  | $ | (577 | )
____________________________________________
(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,
|  | 2017 |  | 2016
|  | ($ in millions)
Oil, natural gas and NGL revenues |  | $ | 1,147 |  |  | $ | 812 |
Gains (losses) on undesignated oil, natural gas and NGL derivatives |  | 332 |  |  | 192 |
Losses on terminated cash flow hedges |  | (10 | ) |  | (11 | )
Total oil, natural gas and NGL revenues |  | $ | 1,469 |  |  | $ | 993 |
The components of marketing, gathering and compression revenues for the Current Quarter and the Prior Quarter are presented below.
|  | Three Months Ended March 31,
|  | 2017 |  | 2016
|  | ($ in millions)
Marketing, gathering and compression revenues |  | $ | 1,284 |  |  | $ | 940 |
Gains (losses) on undesignated supply contract derivatives |  | — |  |  | 20 |
Total marketing, gathering and compression revenues |  | $ | 1,284 |  |  | $ | 960 |
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,
|  | 2017 |  | 2016
|  | ($ in millions)
Oil, natural gas and NGL revenues |  | $ | 1,147 |  |  | $ | 812 |
Gains (losses) on undesignated oil, natural gas and NGL derivatives |  | 332 |  |  | 192 |
Losses on terminated cash flow hedges |  | (10 | ) |  | (11 | )
Total oil, natural gas and NGL revenues |  | $ | 1,469 |  |  | $ | 993 |
The components of marketing, gathering and compression revenues for the Current Quarter and the Prior Quarter are presented below.
|  | Three Months Ended March 31,
|  | 2017 |  | 2016
|  | ($ in millions)
Marketing, gathering and compression revenues |  | $ | 1,284 |  |  | $ | 940 |
Gains (losses) on undesignated supply contract derivatives |  | — |  |  | 20 |
Total marketing, gathering and compression revenues |  | $ | 1,284 |  |  | $ | 960 |
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,
|  | 2017 |  | 2016
|  | ($ in millions)
Interest expense on senior notes |  | $ | 136 |  |  | $ | 157 |
Interest expense on term loan |  | 32 |  |  | — |
Amortization of loan discount, issuance costs and other |  | 9 |  |  | 10 |
Amortization of premium associated with troubled debt restructuring |  | (41 | ) |  | (42 | )
Interest expense on revolving credit facilities |  | 9 |  |  | 5 |
(Gains) losses on undesignated interest rate derivatives |  | 1 |  |  | — |
Capitalized interest |  | (51 | ) |  | (68 | )
Total interest expense |  | $ | 95 |  |  | $ | 62 |
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,
|  | 2017 |  | 2016
|  | Before Tax |  | After Tax |  | Before Tax |  | After Tax
|  | ($ in millions)
Balance, as of January 1 |  | $ | (153 | ) |  | $ | (96 | ) |  | $ | (160 | ) |  | $ | (99 | )
Net change in fair value |  | 4 |  |  | 4 |  |  | (7 | ) |  | (4 | )
Losses reclassified to income |  | 10 |  |  | 10 |  |  | 11 |  |  | 4 |
Balance, as of March 31 |  | $ | (139 | ) |  | $ | (82 | ) |  | $ | (156 | ) |  | $ | (99 | )
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, 2017 and December 31, 2016:
|  | 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, 2017 |  |  |  |  |  |  |  |
Derivative Assets (Liabilities): |  |  |  |  |  |  |  |
Commodity assets |  | $ | — |  |  | $ | 10 |  |  | $ | 3 |  |  | $ | 13 |
Commodity liabilities |  | — |  |  | (163 | ) |  | — |  |  | (163 | )
Total derivatives |  | $ | — |  |  | $ | (153 | ) |  | $ | 3 |  |  | $ | (150 | )
As of December 31, 2016 |  |  |  |  |  |  |  |
Derivative Assets (Liabilities): |  |  |  |  |  |  |  |
Commodity assets |  | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | 1 |
Commodity liabilities |  | — |  |  | (495 | ) |  | (10 | ) |  | (505 | )
Foreign currency liabilities |  | — |  |  | (73 | ) |  | — |  |  | (73 | )
Total derivatives |  | $ | — |  |  | $ | (567 | ) |  | $ | (10 | ) |  | $ | (577 | )
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)
Balance, as of January 1, 2017 |  | $ | (10 | ) |  | $ | — |
Total gains (losses) (realized/unrealized): |  |  |  |
Included in earnings(a) |  | 12 |  |  | — |
Total purchases, issuances, sales and settlements: |  |  |  |
Settlements |  | 1 |  |  | — |
Balance, as of March 31, 2017 |  | $ | 3 |  |  | $ | — |
Balance, as of January 1, 2016 |  | $ | (91 | ) |  | $ | 297 |
Total gains (losses) (realized/unrealized): |  |  |  |
Included in earnings(a) |  | 25 |  |  | 33 |
Total purchases, issuances, sales and settlements: |  |  |  |
Settlements |  | 18 |  |  | (13 | )
Balance, as of March 31, 2016 |  | $ | (48 | ) |  | $ | 317 |
___________________________________________
(a) |  | Oil, Natural Gas and NGL Sales |  | Marketing, Gathering and Compression Revenue
|  | 2017 |  | 2016 |  | 2017 |  | 2016
|  | ($ in millions)
Total gains (losses) included in earnings for the period |  | $ | 12 |  |  | $ | 25 |  |  | $ | — |  |  | $ | 20 |
Change in unrealized gains (losses) related to assets still held at reporting date |  | $ | 5 |  |  | $ | 21 |  |  | $ | — |  |  | $ | 20 |
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, 2017 and December 31, 2016:
|  | 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, 2017 |  |  |  |  |  |  |  |
Financial Assets (Liabilities): |  |  |  |  |  |  |  |
Other current assets |  | $ | 55 |  |  | $ | — |  |  | $ | — |  |  | $ | 55 |
Other current liabilities |  | (56 | ) |  | — |  |  | — |  |  | (56 | )
Total |  | $ | (1 | ) |  | $ | — |  |  | $ | — |  |  | $ | (1 | )
As of December 31, 2016 |  |  |  |  |  |  |  |
Financial Assets (Liabilities): |  |  |  |  |  |  |  |
Other current assets |  | $ | 49 |  |  | $ | — |  |  | $ | — |  |  | $ | 49 |
Other current liabilities |  | (51 | ) |  | — |  |  | — |  |  | (51 | )
Total |  | $ | (2 | ) |  | $ | — |  |  | $ | — |  |  | $ | (2 | )
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, 2017:
Instrument Type |  | Unobservable Input |  | Range |  | Weighted Average |  | Fair Value March 31, 2017
|  |  |  |  |  |  |  | ($ in millions)
Oil trades |  | Oil price volatility curves |  | 18.22% – 24.10% |  | 22.97% |  | $ | — |
Natural gas trades |  | Natural gas price volatility curves |  | 21.37% – 52.18% |  | 38.10% |  | $ | 3 |

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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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