Condensed Combined Debtor-in-Possession Financial Information

9 Months Ended

Sep. 30, 2020

Condensed Financial Information Disclosure [Abstract]

Condensed Combined Debtor-in-Possession Financial Information

The financial statements below represent the condensed combined financial statements of the Debtors as of September 30, 2020 and December 31, 2019 and for the three and nine months ended September 30, 2020 and 2019.



Condensed Combined Balance Sheets	Total Combined Debtor Entities
	September 30, 2020			December 31, 2019
ASSETS	($ in millions)
CURRENT ASSETS:
Cash and cash equivalents	$	304		$	4
Other current assets	765			1,244
Total Current Assets	1,069			1,248
PROPERTY AND EQUIPMENT:
Oil and natural gas properties, based on successful efforts accounting, net	4,637			13,586
Other property and equipment, net	992			1,118
Property and equipment held for sale, net	10			10
Total Property and Equipment, Net	5,639			14,714
Other long-term assets	185			187
Investments in subsidiaries and intercompany advances	(11		)	6
TOTAL ASSETS	$	6,882		$	16,155
LIABILITIES AND EQUITY (DEFICIT)
CURRENT LIABILITIES:
Current liabilities	$	3,105		$	2,391
Total Current Liabilities	3,105			2,391
Long-term debt, net	—			9,073
Deferred income tax liabilities	—			10
Other long-term liabilities	289			317
Liabilities subject to compromise	8,428			—
Total Liabilities	11,822			11,791
EQUITY (DEFICIT):
Chesapeake Stockholders’ Equity (Deficit)	(4,940		)	4,364
Total Equity (Deficit)	(4,940		)	4,364
TOTAL LIABILITIES AND EQUITY (DEFICIT)	$	6,882		$	16,155



Condensed Combined Statements of Operations	Total Combined Debtor Entities
	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
	($ in millions)
REVENUES AND OTHER:
Oil, natural gas and NGL	$	510		$	1,167		$	2,574		$	3,543
Marketing	448			889			1,412			3,038
Total Revenues	958			2,056			3,986			6,581
Other	15			15			45			45
Gains on sales of assets	1			13			1			33
Total Revenues and Other	974			2,084			4,032			6,659
OPERATING EXPENSES:
Oil, natural gas and NGL production	82			135			295			394
Oil, natural gas and NGL gathering, processing and transportation	257			268			810			810
Severance and ad valorem taxes	37			55			116			168
Exploration	5			17			417			56
Marketing	450			901			1,438			3,071
General and administrative	52			66			228			257
Separation and other termination costs	16			—			43			—
Provision for legal contingencies, net	12			—			20			3
Depreciation, depletion and amortization	170			572			929			1,668
Impairments	—			9			8,489			11
Other operating expense	4			15			92			79
Total Operating Expenses	1,085			2,038			12,877			6,517
INCOME (LOSS) FROM OPERATIONS	(111		)	46			(8,845		)	142
OTHER INCOME (EXPENSE):
Interest expense	(25		)	(177		)	(307		)	(513		)
Losses on investments	—			(4		)	(23		)	(28		)
Gains on purchases or exchanges of debt	—			70			65			70
Other income	2			3			14			30
Reorganization items, net	(611		)	—			(217		)	—
Equity in net losses of subsidiary	—			—			(18		)	—
Total Other Expense	(634		)	(108		)	(486		)	(441		)
LOSS BEFORE INCOME TAXES	(745		)	(62		)	(9,331		)	(299		)
Income tax benefit	—			(1		)	(13		)	(315		)
NET INCOME (LOSS)	(745		)	(61		)	(9,318		)	16
Other comprehensive income	7			8			24			26
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE	$	(738	)	$	(53	)	$	(9,294	)	$	42



Condensed Combined Statements of Cash Flows	Total Combined Debtor Entities
	Nine Months Ended September 30,
	2020			2019
	($ in millions)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Cash Provided By Operating Activities	$	1,153		$	1,178
CASH FLOWS FROM INVESTING ACTIVITIES:
Drilling and completion costs	(946		)	(1,640		)
Business combination, net	—			(353		)
Acquisitions of proved and unproved properties	(9		)	(31		)
Proceeds from divestitures of proved and unproved properties	10			110
Additions to other property and equipment	(18		)	(27		)
Proceeds from sales of other property and equipment	5			6
Net Cash Used In Investing Activities	(958		)	(1,935		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from pre-petition revolving credit facility borrowings	3,806			8,805
Payments on pre-petition revolving credit facility borrowings	(3,467		)	(7,495		)
Proceeds from DIP credit facility borrowings	60			—
Payments on DIP credit facility borrowings	(60		)	—
DIP credit facility and exit facilities financing costs	(109		)	—
Cash paid to purchase debt	(95		)	(457		)
Cash paid for preferred stock dividends	(22		)	(69		)
Other financing activities	(8		)	(19		)
Net Cash Provided By Financing Activities	105			765
Net increase in cash and cash equivalents	300			8
Cash and cash equivalents, beginning of period	4			3
Cash and cash equivalents, end of period	$	304		$	11