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v3.19.2

Change in Accounting Principle | 6 Months Ended
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Jun. 30, 2019
Accounting Changes and Error Corrections [Abstract] |
Change in Accounting Principle | Change in Accounting Principle In the first quarter of 2019, we voluntarily changed our method of accounting for oil and natural gas exploration and development activities from the full cost method to the successful efforts method. Accordingly, financial information for prior periods has been recast to reflect retrospective application of the successful efforts method. In general, under successful efforts, exploration costs such as exploratory dry holes, exploratory geophysical and geological costs, delay rentals, unproved leasehold impairments and exploration overhead are charged against earnings as incurred, versus being capitalized under the full cost method of accounting. The successful efforts method also provides for the assessment of potential property impairments by comparing the net carrying value of oil and natural gas properties to associated projected undiscounted pre-tax future net cash flows. If the expected undiscounted pre-tax future net cash flows are lower than the unamortized capitalized costs, the capitalized costs are reduced to fair value. Under the full cost method of accounting, a write-down would be required if the net carrying value of oil and natural gas properties exceeds a full cost ceiling using an unweighted arithmetic average of commodity prices in effect on the first day of each of the previous 12 months. In addition, gains or losses, if applicable, are generally recognized on the disposition of oil and natural gas property and equipment under the successful efforts method, as opposed to an adjustment to the net carrying value of the assets remaining under the full cost method. Our condensed consolidated financial statements have been recast to reflect these differences.
|  | Three Months Ended June 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |  | Under Full Cost |  | Successful Efforts Adjustment |  | Under Successful Efforts
|  | ($ in millions except per share data)
REVENUES AND OTHER: |  |  |  |  |  |
Oil, natural gas and NGL |  | $ | 1,454 |  |  | $ | — |  |  | $ | 1,454 |
Marketing |  | 916 |  |  | — |  |  | 916 |
Total Revenues |  | 2,370 |  |  | — |  |  | 2,370 |
Other |  | — |  |  | 15 |  |  | 15 |
Gains on sales of assets |  | — |  |  | 1 |  |  | 1 |
Total Revenues and Other |  | 2,370 |  |  | 16 |  |  | 2,386 |
OPERATING EXPENSES: |  |  |  |  |  |
Oil, natural gas and NGL production |  | 166 |  |  | — |  |  | 166 |
Oil, natural gas and NGL gathering, processing and transportation |  | 271 |  |  | — |  |  | 271 |
Production taxes |  | 40 |  |  | — |  |  | 40 |
Exploration |  | — |  |  | 15 |  |  | 15 |
Marketing |  | 940 |  |  | — |  |  | 940 |
General and administrative |  | 76 |  |  | 13 |  |  | 89 |
Provisions for legal contingencies, net |  | 3 |  |  | — |  |  | 3 |
Depreciation, depletion and amortization |  | 419 |  |  | 161 |  |  | 580 |
Impairments |  | 1 |  |  | — |  |  | 1 |
Gain on sale of oil and natural gas properties |  | (1 | ) |  | 1 |  |  | — |
Other operating expense |  | 4 |  |  | (1 | ) |  | 3 |
Total Operating Expenses |  | 1,919 |  |  | 189 |  |  | 2,108 |
INCOME FROM OPERATIONS |  | 451 |  |  | (173 | ) |  | 278 |
OTHER INCOME (EXPENSE): |  |  |  |  |  |
Interest expense |  | (131 | ) |  | (44 | ) |  | (175 | )
Losses on investments |  | (23 | ) |  | — |  |  | (23 | )
Other income |  | 13 |  |  | 5 |  |  | 18 |
Total Other Expense |  | (141 | ) |  | (39 | ) |  | (180 | )
INCOME BEFORE INCOME TAXES |  | 310 |  |  | (212 | ) |  | 98 |
Income tax benefit |  | — |  |  | — |  |  | — |
NET INCOME |  | 310 |  |  | (212 | ) |  | 98 |
Net income attributable to noncontrolling interests |  | — |  |  | — |  |  | — |
NET INCOME ATTRIBUTABLE TO CHESAPEAKE |  | 310 |  |  | (212 | ) |  | 98 |
Preferred stock dividends |  | (23 | ) |  | — |  |  | (23 | )
Earnings allocated to participating securities |  | (1 | ) |  | 1 |  |  | — |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS |  | $ | 286 |  |  | $ | (211 | ) |  | $ | 75 |
EARNINGS PER COMMON SHARE: |  |  |  |  |  |
Basic |  | $ | 0.18 |  |  | $ | (0.13 | ) |  | $ | 0.05 |
Diluted |  | $ | 0.18 |  |  | $ | (0.13 | ) |  | $ | 0.05 |
WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING (in millions): |  |  |  |  |  |
Basic |  | 1,628 |  |  | — |  |  | 1,628 |
Diluted |  | 1,628 |  |  | — |  |  | 1,628 |
|  | Three Months Ended June 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |  | Under Full Cost |  | Successful Efforts Adjustment |  | Under Successful Efforts
|  | ($ in millions except per share data)
REVENUES AND OTHER: |  |  |  |  |  |
Oil, natural gas and NGL |  | $ | 982 |  |  | $ | — |  |  | $ | 982 |
Marketing |  | 1,273 |  |  | — |  |  | 1,273 |
Total Revenues |  | 2,255 |  |  | — |  |  | 2,255 |
Other |  | — |  |  | 16 |  |  | 16 |
Gains on sales of assets |  | — |  |  | 18 |  |  | 18 |
Total Revenues and Other |  | 2,255 |  |  | 34 |  |  | 2,289 |
OPERATING EXPENSES: |  |  |  |  |  |
Oil, natural gas and NGL production |  | 138 |  |  | — |  |  | 138 |
Oil, natural gas and NGL gathering, processing and transportation |  | 340 |  |  | — |  |  | 340 |
Production taxes |  | 26 |  |  | — |  |  | 26 |
Exploration |  | — |  |  | 20 |  |  | 20 |
Marketing |  | 1,292 |  |  | — |  |  | 1,292 |
General and administrative |  | 91 |  |  | 14 |  |  | 105 |
Provision for legal contingencies, net |  | 4 |  |  | — |  |  | 4 |
Depreciation, depletion and amortization |  | 290 |  |  | 181 |  |  | 471 |
Impairments |  | 46 |  |  | 8 |  |  | 54 |
Other operating income |  | (2 | ) |  | 1 |  |  | (1 | )
Total Operating Expenses |  | 2,225 |  |  | 224 |  |  | 2,449 |
INCOME (LOSS) FROM OPERATIONS |  | 30 |  |  | (190 | ) |  | (160 | )
OTHER INCOME (EXPENSE): |  |  |  |  |  |
Interest expense |  | (117 | ) |  | (38 | ) |  | (155 | )
Other income (expense) |  | 62 |  |  | (5 | ) |  | 57 |
Total Other Expense |  | (55 | ) |  | (43 | ) |  | (98 | )
LOSS BEFORE INCOME TAXES |  | (25 | ) |  | (233 | ) |  | (258 | )
Income tax benefit |  | (9 | ) |  | — |  |  | (9 | )
NET LOSS |  | (16 | ) |  | (233 | ) |  | (249 | )
Net income attributable to noncontrolling interests |  | (1 | ) |  | 1 |  |  | — |
NET LOSS ATTRIBUTABLE TO CHESAPEAKE |  | (17 | ) |  | (232 | ) |  | (249 | )
Preferred stock dividends |  | (23 | ) |  | — |  |  | (23 | )
NET LOSS AVAILABLE TO COMMON STOCKHOLDERS |  | $ | (40 | ) |  | $ | (232 | ) |  | $ | (272 | )
LOSS PER COMMON SHARE: |  |  |  |  |  |
Basic |  | $ | (0.04 | ) |  | $ | (0.26 | ) |  | $ | (0.30 | )
Diluted |  | $ | (0.04 | ) |  | $ | (0.26 | ) |  | $ | (0.30 | )
WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING (in millions): |  |  |  |  |  |
Basic |  | 909 |  |  | — |  |  | 909 |
Diluted |  | 909 |  |  | — |  |  | 909 |
|  | Six Months Ended June 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |  | Under Full Cost |  | Successful Efforts Adjustment |  | Under Successful Efforts
|  | ($ in millions except per share data)
REVENUES AND OTHER: |  |  |  |  |  |
Oil, natural gas and NGL |  | $ | 2,383 |  |  | $ | — |  |  | $ | 2,383 |
Marketing |  | 2,149 |  |  | — |  |  | 2,149 |
Total Revenues |  | 4,532 |  |  | — |  |  | 4,532 |
Other |  | — |  |  | 30 |  |  | 30 |
Gains on sales of assets |  | — |  |  | 20 |  |  | 20 |
Total Revenues and Other |  | 4,532 |  |  | 50 |  |  | 4,582 |
OPERATING EXPENSES: |  |  |  |  |  |
Oil, natural gas and NGL production |  | 298 |  |  | — |  |  | 298 |
Oil, natural gas and NGL gathering, processing and transportation |  | 545 |  |  | — |  |  | 545 |
Production taxes |  | 74 |  |  | — |  |  | 74 |
Exploration |  | — |  |  | 39 |  |  | 39 |
Marketing |  | 2,170 |  |  | — |  |  | 2,170 |
General and administrative |  | 164 |  |  | 28 |  |  | 192 |
Provision for legal contingencies |  | 3 |  |  | — |  |  | 3 |
Depreciation, depletion and amortization |  | 776 |  |  | 323 |  |  | 1,099 |
Gain on sale of oil and natural gas properties |  | (10 | ) |  | 10 |  |  | — |
Impairments |  | 2 |  |  | — |  |  | 2 |
Other operating expense |  | 64 |  |  | — |  |  | 64 |
Total Operating Expenses |  | 4,086 |  |  | 400 |  |  | 4,486 |
INCOME FROM OPERATIONS |  | 446 |  |  | (350 | ) |  | 96 |
OTHER INCOME (EXPENSE): |  |  |  |  |  |
Interest expense |  | (266 | ) |  | (70 | ) |  | (336 | )
Losses on investments |  | (24 | ) |  | — |  |  | (24 | )
Other income |  | 20 |  |  | 7 |  |  | 27 |
Total Other Expense |  | (270 | ) |  | (63 | ) |  | (333 | )
INCOME (LOSS) BEFORE INCOME TAXES |  | 176 |  |  | (413 | ) |  | (237 | )
Income tax benefit |  | (314 | ) |  | — |  |  | (314 | )
NET INCOME |  | 490 |  |  | (413 | ) |  | 77 |
Net income attributable to noncontrolling interests |  | (1 | ) |  | 1 |  |  | — |
NET INCOME ATTRIBUTABLE TO CHESAPEAKE |  | 489 |  |  | (412 | ) |  | 77 |
Preferred stock dividends |  | (46 | ) |  | — |  |  | (46 | )
Earnings allocated to participating securities |  | (3 | ) |  | 3 |  |  | — |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS |  | $ | 440 |  |  | $ | (409 | ) |  | $ | 31 |
EARNINGS PER COMMON SHARE: |  |  |  |  |  |
Basic |  | $ | 0.29 |  |  | $ | (0.27 | ) |  | $ | 0.02 |
Diluted |  | $ | 0.29 |  |  | $ | (0.27 | ) |  | $ | 0.02 |
WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING (in millions): |  |  |  |  |  |
Basic |  | 1,505 |  |  | — |  |  | 1,505 |
Diluted |  | 1,505 |  |  | — |  |  | 1,505 |
|  | Six Months Ended June 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |  | Under Full Cost |  | Successful Efforts Adjustment |  | Under Successful Efforts
|  | ($ in millions except per share data)
REVENUES AND OTHER: |  |  |  |  |  |
Oil, natural gas and NGL |  | $ | 2,225 |  |  | $ | — |  |  | $ | 2,225 |
Marketing |  | 2,519 |  |  | — |  |  | 2,519 |
Total Revenues |  | 4,744 |  |  | — |  |  | 4,744 |
Other |  | — |  |  | 32 |  |  | 32 |
Gains on sales of assets |  | — |  |  | 37 |  |  | 37 |
Total Revenues and Other |  | 4,744 |  |  | 69 |  |  | 4,813 |
OPERATING EXPENSES: |  |  |  |  |  |
Oil, natural gas and NGL production |  | 285 |  |  | — |  |  | 285 |
Oil, natural gas and NGL gathering, processing and transportation |  | 696 |  |  | — |  |  | 696 |
Production taxes |  | 57 |  |  | — |  |  | 57 |
Exploration |  | — |  |  | 101 |  |  | 101 |
Marketing |  | 2,560 |  |  | — |  |  | 2,560 |
General and administrative |  | 163 |  |  | 29 |  |  | 192 |
Restructuring and other termination costs |  | 38 |  |  | — |  |  | 38 |
Provision for legal contingencies, net |  | 9 |  |  | — |  |  | 9 |
Depreciation, depletion and amortization |  | 576 |  |  | 354 |  |  | 930 |
Impairments |  | 46 |  |  | 18 |  |  | 64 |
Other operating (income) expense |  | 6 |  |  | (7 | ) |  | (1 | )
Total Operating Expenses |  | 4,436 |  |  | 495 |  |  | 4,931 |
INCOME (LOSS) FROM OPERATIONS |  | 308 |  |  | (426 | ) |  | (118 | )
OTHER INCOME (EXPENSE): |  |  |  |  |  |
Interest expense |  | (240 | ) |  | (77 | ) |  | (317 | )
Gains on investments |  | 139 |  |  | — |  |  | 139 |
Other income |  | 62 |  |  | (6 | ) |  | 56 |
Total Other Expense |  | (39 | ) |  | (83 | ) |  | (122 | )
INCOME (LOSS) BEFORE INCOME TAXES |  | 269 |  |  | (509 | ) |  | (240 | )
Income tax benefit |  | (9 | ) |  | — |  |  | (9 | )
NET INCOME (LOSS) |  | 278 |  |  | (509 | ) |  | (231 | )
Net income attributable to noncontrolling interests |  | (2 | ) |  | 1 |  |  | (1 | )
NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE |  | 276 |  |  | (508 | ) |  | (232 | )
Preferred stock dividends |  | (46 | ) |  | — |  |  | (46 | )
Earnings allocated to participating securities |  | (2 | ) |  | 2 |  |  | — |
NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS |  | $ | 228 |  |  | $ | (506 | ) |  | $ | (278 | )
EARNINGS (LOSS) PER COMMON SHARE: |  |  |  |  |  |
Basic |  | $ | 0.25 |  |  | $ | (0.56 | ) |  | $ | (0.31 | )
Diluted |  | $ | 0.25 |  |  | $ | (0.56 | ) |  | $ | (0.31 | )
WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING (in millions): |  |  |  |  |  |
Basic |  | 908 |  |  | — |  |  | 908 |
Diluted |  | 908 |  |  | — |  |  | 908 |
|  | Three Months Ended June 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |  | Under Full Cost |  | Successful Efforts Adjustment |  | Under Successful Efforts
|  | ($ in millions)
NET INCOME |  | $ | 310 |  |  | $ | (212 | ) |  | $ | 98 |
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAX: |  |  |  |  |  |
Unrealized gains on derivative instruments |  | — |  |  | — |  |  | — |
Reclassification of losses on settled derivative instruments |  | 8 |  |  | — |  |  | 8 |
Other Comprehensive Income |  | 8 |  |  | — |  |  | 8 |
COMPREHENSIVE INCOME |  | 318 |  |  | (212 | ) |  | 106 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS |  | — |  |  | — |  |  | — |
COMPREHENSIVE INCOME ATTRIBUTABLE TO CHESAPEAKE |  | $ | 318 |  |  | $ | (212 | ) |  | $ | 106 |
|  | Three Months Ended June 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |  | Under Full Cost |  | Successful Efforts Adjustment |  | Under Successful Efforts
|  | ($ in millions)
NET LOSS |  | $ | (16 | ) |  | $ | (233 | ) |  | $ | (249 | )
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAX: |  |  |  |  |  |
Unrealized gains on derivative instruments |  | — |  |  | — |  |  | — |
Reclassification of losses on settled derivative instruments |  | 7 |  |  | — |  |  | 7 |
Other Comprehensive Income |  | 7 |  |  | — |  |  | 7 |
COMPREHENSIVE LOSS |  | (9 | ) |  | (233 | ) |  | (242 | )
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS |  | (1 | ) |  | 1 |  |  | — |
COMPREHENSIVE LOSS ATTRIBUTABLE TO CHESAPEAKE |  | $ | (10 | ) |  | $ | (232 | ) |  | $ | (242 | )
|  | Six Months Ended June 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |  | Under Full Cost |  | Successful Efforts Adjustment |  | Under Successful Efforts
|  | ($ in millions)
NET INCOME (LOSS) |  | $ | 490 |  |  | $ | (413 | ) |  | $ | 77 |
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAX: |  |  |  |  |  |
Unrealized gains on derivative instruments |  | — |  |  | — |  |  | — |
Reclassification of losses on settled derivative instruments |  | 18 |  |  | — |  |  | 18 |
Other Comprehensive Income |  | 18 |  |  | — |  |  | 18 |
COMPREHENSIVE INCOME |  | 508 |  |  | (413 | ) |  | 95 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS |  | (1 | ) |  | 1 |  |  | — |
COMPREHENSIVE INCOME ATTRIBUTABLE TO CHESAPEAKE |  | $ | 507 |  |  | $ | (412 | ) |  | $ | 95 |
|  | Six Months Ended June 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |  | Under Full Cost |  | Successful Efforts Adjustment |  | Under Successful Efforts
|  | ($ in millions)
NET INCOME (LOSS) |  | $ | 278 |  |  | $ | (509 | ) |  | $ | (231 | )
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAX: |  |  |  |  |  |
Unrealized gains on derivative instruments |  | — |  |  | — |  |  | — |
Reclassification of losses on settled derivative instruments |  | 17 |  |  | — |  |  | 17 |
Other Comprehensive Income |  | 17 |  |  | — |  |  | 17 |
COMPREHENSIVE INCOME (LOSS) |  | 295 |  |  | (509 | ) |  | (214 | )
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS |  | (2 | ) |  | 1 |  |  | (1 | )
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE |  | $ | 293 |  |  | $ | (508 | ) |  | $ | (215 | )
|  | Six Months Ended June 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |  | Under Full Cost |  | Successful Efforts Adjustment |  | Under Successful Efforts
|  | ($ in millions)
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME |  | $ | 490 |  |  | $ | (413 | ) |  | $ | 77 |
ADJUSTMENTS TO RECONCILE NET INCOME TO CASH PROVIDED BY OPERATING ACTIVITIES: |  |  |  |  |  |
Depreciation, depletion and amortization |  | 776 |  |  | 323 |  |  | 1,099 |
Deferred income tax benefit |  | (314 | ) |  | — |  |  | (314 | )
Derivative losses, net |  | 30 |  |  | — |  |  | 30 |
Cash receipts on derivative settlements, net |  | 15 |  |  | — |  |  | 15 |
Stock-based compensation |  | 17 |  |  | — |  |  | 17 |
Gains on sales of assets |  | — |  |  | (20 | ) |  | (20 | )
Impairments |  | 2 |  |  | — |  |  | 2 |
Exploration |  | — |  |  | 25 |  |  | 25 |
Losses on investments |  | 18 |  |  | — |  |  | 18 |
Other |  | 31 |  |  | 10 |  |  | 41 |
Changes in assets and liabilities |  | (107 | ) |  | (30 | ) |  | (137 | )
Net Cash Provided By Operating Activities |  | 958 |  |  | (105 | ) |  | 853 |
CASH FLOWS FROM INVESTING ACTIVITIES:
Drilling and completion costs |  | (1,104 | ) |  | 34 |  |  | (1,070 | )
Business combination, net |  | (353 | ) |  | — |  |  | (353 | )
Acquisitions of proved and unproved properties |  | (88 | ) |  | 71 |  |  | (17 | )
Proceeds from divestitures of proved and unproved properties |  | 82 |  |  | — |  |  | 82 |
Additions to other property and equipment |  | (18 | ) |  | — |  |  | (18 | )
Proceeds from sales of other property and equipment |  | 4 |  |  | — |  |  | 4 |
Net Cash Used In Investing Activities |  | (1,477 | ) |  | 105 |  |  | (1,372 | )
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit facility borrowings |  | 6,416 |  |  | — |  |  | 6,416 |
Payments on revolving credit facility borrowings |  | (5,452 | ) |  | — |  |  | (5,452 | )
Cash paid to purchase debt |  | (381 | ) |  | — |  |  | (381 | )
Cash paid for preferred stock dividends |  | (46 | ) |  | — |  |  | (46 | )
Distributions to noncontrolling interest owners |  | (2 | ) |  | — |  |  | (2 | )
Other |  | (16 | ) |  | — |  |  | (16 | )
Net Cash Provided By Financing Activities |  | 519 |  |  | — |  |  | 519 |
Net increase in cash and cash equivalents |  | — |  |  | — |  |  | — |
Cash and cash equivalents, beginning of period |  | 4 |  |  | — |  |  | 4 |
Cash and cash equivalents, end of period |  | $ | 4 |  |  | $ | — |  |  | $ | 4 |
|  | Six Months Ended June 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |  | Under Full Cost |  | Successful Efforts Adjustment |  | Under Successful Efforts
|  | ($ in millions)
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME (LOSS) |  | $ | 278 |  |  | $ | (509 | ) |  | $ | (231 | )
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO CASH PROVIDED BY OPERATING ACTIVITIES: |  |  |  |  |  |
Depreciation, depletion and amortization |  | 576 |  |  | 354 |  |  | 930 |
Deferred income tax benefit |  | (9 | ) |  | — |  |  | (9 | )
Derivative losses, net |  | 368 |  |  | — |  |  | 368 |
Cash payments on derivative settlements, net |  | (55 | ) |  | — |  |  | (55 | )
Stock-based compensation |  | 18 |  |  | — |  |  | 18 |
Gains on sales of assets |  | — |  |  | (37 | ) |  | (37 | )
Impairments |  | 46 |  |  | 18 |  |  | 64 |
Exploration |  | — |  |  | 73 |  |  | 73 |
Gains on investments |  | (139 | ) |  | — |  |  | (139 | )
Other |  | (86 | ) |  | (7 | ) |  | (93 | )
Changes in assets and liabilities |  | 94 |  |  | (32 | ) |  | 62 |
Net Cash Provided By Operating Activities |  | 1,091 |  |  | (140 | ) |  | 951 |
CASH FLOWS FROM INVESTING ACTIVITIES:
Drilling and completion costs |  | (979 | ) |  | 51 |  |  | (928 | )
Acquisitions of proved and unproved properties |  | (191 | ) |  | 89 |  |  | (102 | )
Proceeds from divestitures of proved and unproved properties |  | 384 |  |  | — |  |  | 384 |
Additions to other property and equipment |  | (5 | ) |  | — |  |  | (5 | )
Proceeds from sales of other property and equipment |  | 74 |  |  | — |  |  | 74 |
Proceeds from sales of investments |  | 74 |  |  | — |  |  | 74 |
Net Cash Used In Investing Activities |  | (643 | ) |  | 140 |  |  | (503 | )
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit facility borrowings |  | 6,118 |  |  | — |  |  | 6,118 |
Payments on revolving credit facility borrowings |  | (6,393 | ) |  | — |  |  | (6,393 | )
Extinguishment of other financing |  | (122 | ) |  | — |  |  | (122 | )
Cash paid for preferred stock dividends |  | (46 | ) |  | — |  |  | (46 | )
Distributions to noncontrolling interest owners |  | (3 | ) |  | — |  |  | (3 | )
Other |  | (4 | ) |  | — |  |  | (4 | )
Net Cash Used In Financing Activities |  | (450 | ) |  | — |  |  | (450 | )
Net decrease in cash and cash equivalents |  | (2 | ) |  | — |  |  | (2 | )
Cash and cash equivalents, beginning of period |  | 5 |  |  | — |  |  | 5 |
Cash and cash equivalents, end of period |  | $ | 3 |  |  | $ | — |  |  | $ | 3 |
|  | Three Months Ended June 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY |  | Under Full Cost |  | Successful Efforts Adjustment |  | Under Successful Efforts
|  | ($ in millions)
PREFERRED STOCK: |  |  |  |  |  |
Balance, beginning and end of period |  | $ | 1,671 |  |  | $ | — |  |  | $ | 1,671 |
COMMON STOCK: |  |  |  |  |  |
Balance, beginning and end of period |  | 16 |  |  | — |  |  | 16 |
ADDITIONAL PAID-IN CAPITAL: |  |  |  |  |  |
Balance, beginning of period |  | 16,392 |  |  | — |  |  | 16,392 |
Stock-based compensation |  | 11 |  |  | — |  |  | 11 |
Dividends on preferred stock |  | (23 | ) |  | — |  |  | (23 | )
Balance, end of period |  | 16,380 |  |  | — |  |  | 16,380 |
ACCUMULATED DEFICIT: |  |  |  |  |  |
Balance, beginning of period |  | (15,481 | ) |  | 1,548 |  |  | (13,933 | )
Net income attributable to Chesapeake |  | 310 |  |  | (212 | ) |  | 98 |
Balance, end of period |  | (15,171 | ) |  | 1,336 |  |  | (13,835 | )
ACCUMULATED OTHER COMPREHENSIVE LOSS: |  |  |  |  |  |
Balance, beginning of period |  | (13 | ) |  | — |  |  | (13 | )
Hedging activity |  | 8 |  |  | — |  |  | 8 |
Balance, end of period |  | (5 | ) |  | — |  |  | (5 | )
TREASURY STOCK – COMMON: |  |  |  |  |  |
Balance, beginning of period |  | (36 | ) |  | — |  |  | (36 | )
Purchase of 81,093 shares for company benefit plans |  | (1 | ) |  | — |  |  | (1 | )
Release of 148,767 shares from company benefit plans |  | 1 |  |  | — |  |  | 1 |
Balance, end of period |  | (36 | ) |  | — |  |  | (36 | )
TOTAL CHESAPEAKE STOCKHOLDERS’ EQUITY |  | 2,855 |  |  | 1,336 |  |  | 4,191 |
NONCONTROLLING INTERESTS: |  |  |  |  |  |
Balance, beginning of period |  | 122 |  |  | (81 | ) |  | 41 |
Net income attributable to noncontrolling interests |  | — |  |  | — |  |  | — |
Distributions to noncontrolling interest owners |  | (2 | ) |  | — |  |  | (2 | )
Balance, end of period |  | 120 |  |  | (81 | ) |  | 39 |
TOTAL EQUITY |  | $ | 2,975 |  |  | $ | 1,255 |  |  | $ | 4,230 |
|  | Three Months Ended June 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY |  | Under Full Cost |  | Successful Efforts Adjustment |  | Under Successful Efforts
|  | ($ in millions)
PREFERRED STOCK: |  |  |  |  |  |
Balance, beginning and end of period |  | $ | 1,671 |  |  | $ | — |  |  | $ | 1,671 |
COMMON STOCK: |  |  |  |  |  |
Balance, beginning of period |  | 9 |  |  | — |  |  | 9 |
ADDITIONAL PAID-IN CAPITAL: |  |  |  |  |  |
Balance, beginning of period |  | 14,419 |  |  | — |  |  | 14,419 |
Stock-based compensation |  | 12 |  |  | — |  |  | 12 |
Dividends on preferred stock |  | (23 | ) |  | — |  |  | (23 | )
Balance, end of period |  | 14,408 |  |  | — |  |  | 14,408 |
ACCUMULATED DEFICIT: |  |  |  |  |  |
Balance, beginning of period |  | (16,240 | ) |  | 2,119 |  |  | (14,121 | )
Net loss attributable to Chesapeake |  | (17 | ) |  | (232 | ) |  | (249 | )
Balance, end of period |  | (16,257 | ) |  | 1,887 |  |  | (14,370 | )
ACCUMULATED OTHER COMPREHENSIVE LOSS: |  |  |  |  |  |
Balance, beginning of period |  | (47 | ) |  | — |  |  | (47 | )
Hedging activity |  | 7 |  |  | — |  |  | 7 |
Balance, end of period |  | (40 | ) |  | — |  |  | (40 | )
TREASURY STOCK – COMMON: |  |  |  |  |  |
Balance, beginning of period |  | (32 | ) |  | — |  |  | (32 | )
Purchase of 17,046 shares for company benefit plans |  | — |  |  | — |  |  | — |
Release of 114,450 shares from company benefit plans |  | 1 |  |  | — |  |  | 1 |
Balance, end of period |  | (31 | ) |  | — |  |  | (31 | )
TOTAL CHESAPEAKE STOCKHOLDERS’ EQUITY (DEFICIT) |  | (240 | ) |  | 1,887 |  |  | 1,647 |
NONCONTROLLING INTERESTS: |  |  |  |  |  |
Balance, beginning of period |  | 123 |  |  | (80 | ) |  | 43 |
Net income attributable to noncontrolling interests |  | 1 |  |  | (1 | ) |  | — |
Distributions to noncontrolling interest owners |  | (1 | ) |  | — |  |  | (1 | )
Balance, end of period |  | 123 |  |  | (81 | ) |  | 42 |
TOTAL EQUITY (DEFICIT) |  | $ | (117 | ) |  | $ | 1,806 |  |  | $ | 1,689 |
|  | Six Months Ended June 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY |  | Under Full Cost |  | Successful Efforts Adjustment |  | Under Successful Efforts
|  | ($ in millions)
PREFERRED STOCK: |  |  |  |  |  |
Balance, beginning and end of period |  | $ | 1,671 |  |  | $ | — |  |  | $ | 1,671 |
COMMON STOCK: |  |  |  |  |  |
Balance, beginning of period |  | 9 |  |  | — |  |  | 9 |
Common shares issued for WildHorse Merger |  | 7 |  |  | — |  |  | 7 |
Balance, end of period |  | 16 |  |  | — |  |  | 16 |
ADDITIONAL PAID-IN CAPITAL: |  |  |  |  |  |
Balance, beginning of period |  | 14,378 |  |  | — |  |  | 14,378 |
Common shares issued for WildHorse Merger |  | 2,030 |  |  | — |  |  | 2,030 |
Stock-based compensation |  | 18 |  |  | — |  |  | 18 |
Dividends on preferred stock |  | (46 | ) |  | — |  |  | (46 | )
Balance, end of period |  | 16,380 |  |  | — |  |  | 16,380 |
ACCUMULATED DEFICIT: |  |  |  |  |  |
Balance, beginning of period |  | (15,660 | ) |  | 1,748 |  |  | (13,912 | )
Net income attributable to Chesapeake |  | 489 |  |  | (412 | ) |  | 77 |
Balance, end of period |  | (15,171 | ) |  | 1,336 |  |  | (13,835 | )
ACCUMULATED OTHER COMPREHENSIVE LOSS: |  |  |  |  |  |
Balance, beginning of period |  | (23 | ) |  | — |  |  | (23 | )
Hedging activity |  | 18 |  |  | — |  |  | 18 |
Balance, end of period |  | (5 | ) |  | — |  |  | (5 | )
TREASURY STOCK – COMMON: |  |  |  |  |  |
Balance, beginning of period |  | (31 | ) |  | — |  |  | (31 | )
Purchase of 2,620,566 shares for company benefit plans |  | (7 | ) |  | — |  |  | (7 | )
Release of 259,563 shares from company benefit plans |  | 2 |  |  | — |  |  | 2 |
Balance, end of period |  | (36 | ) |  | — |  |  | (36 | )
TOTAL CHESAPEAKE STOCKHOLDERS’ EQUITY |  | 2,855 |  |  | 1,336 |  |  | 4,191 |
NONCONTROLLING INTERESTS: |  |  |  |  |  |
Balance, beginning of period |  | 123 |  |  | (82 | ) |  | 41 |
Net income attributable to noncontrolling interests |  | (1 | ) |  | 1 |  |  | — |
Distributions to noncontrolling interest owners |  | (2 | ) |  | — |  |  | (2 | )
Balance, end of period |  | 120 |  |  | (81 | ) |  | 39 |
TOTAL EQUITY |  | $ | 2,975 |  |  | $ | 1,255 |  |  | $ | 4,230 |
|  | Six Months Ended June 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY |  | Under Full Cost |  | Successful Efforts Adjustment |  | Under Successful Efforts
|  | ($ in millions)
PREFERRED STOCK: |  |  |  |  |  |
Balance, beginning and end of period |  | $ | 1,671 |  |  | $ | — |  |  | $ | 1,671 |
COMMON STOCK: |  |  |  |  |  |
Balance, beginning and end of period |  | 9 |  |  | — |  |  | 9 |
ADDITIONAL PAID-IN CAPITAL: |  |  |  |  |  |
Balance, beginning of period |  | 14,437 |  |  | — |  |  | 14,437 |
Stock-based compensation |  | 17 |  |  | — |  |  | 17 |
Dividends on preferred stock |  | (46 | ) |  | — |  |  | (46 | )
Balance, end of period |  | 14,408 |  |  | — |  |  | 14,408 |
ACCUMULATED DEFICIT: |  |  |  |  |  |
Balance, beginning of period |  | (16,525 | ) |  | 2,395 |  |  | (14,130 | )
Net income (loss) attributable to Chesapeake |  | 276 |  |  | (508 | ) |  | (232 | )
Cumulative effect of accounting change |  | (8 | ) |  | — |  |  | (8 | )
Balance, end of period |  | (16,257 | ) |  | 1,887 |  |  | (14,370 | )
ACCUMULATED OTHER COMPREHENSIVE LOSS: |  |  |  |  |  |
Balance, beginning of period |  | (57 | ) |  | — |  |  | (57 | )
Hedging activity |  | 17 |  |  | — |  |  | 17 |
Balance, end of period |  | (40 | ) |  | — |  |  | (40 | )
TREASURY STOCK – COMMON: |  |  |  |  |  |
Balance, beginning of period |  | (31 | ) |  | — |  |  | (31 | )
Purchase of 1,468,524 shares for company benefit plans |  | (4 | ) |  | — |  |  | (4 | )
Release of 389,857 shares from company benefit plans |  | 4 |  |  | — |  |  | 4 |
Balance, end of period |  | (31 | ) |  | — |  |  | (31 | )
TOTAL CHESAPEAKE STOCKHOLDERS’ EQUITY (DEFICIT) |  | (240 | ) |  | 1,887 |  |  | 1,647 |
NONCONTROLLING INTERESTS: |  |  |  |  |  |
Balance, beginning of period |  | 124 |  |  | (80 | ) |  | 44 |
Net income attributable to noncontrolling interests |  | 2 |  |  | (1 | ) |  | 1 |
Distributions to noncontrolling interest owners |  | (3 | ) |  | — |  |  | (3 | )
Balance, end of period |  | 123 |  |  | (81 | ) |  | 42 |
TOTAL EQUITY (DEFICIT) |  | $ | (117 | ) |  | $ | 1,806 |  |  | $ | 1,689 |

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- References No definition available. + Details
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- Definition The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -URI http://asc.fasb.org/topic&trid=2122394 + Details
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