Chesapeake Energy 2000 Annual Report Download - page 16

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Production, Sales, Prices and Expenses
The following table sets forth information regarding the production volumes, oil and gas sales, average
sales prices received and expenses for the periods indicated:
Our hedging activities resulted in an increase in oil and gas revenues of $11.3 million in 1998, a decrease
of $1.7 million in 1999, and a decrease of $30.6 million in 2000.
In January 2001, Chesapeake acquired Gothic with properties primarily located in the Mid-Continent.
For the year ended December 31, 2000, Gothic reported $83 million of oil and gas sales and 27 bcfe of
production.
Proved Reserves
The following table sets forth our estimated proved reserves and the present value of the proved reserves
(based on our weighted average prices at December 31, 2000 of $26.41 per barrel of oil and $10.12 per mcf of
gas). These prices were based on the adjusted cash spot prices for oil and natural gas at December 31, 2000.
During 2000, we increased the present value of our proved developed reserves to 69% and increased the
volume of our proved developed reserves to 70% of total proved reserves. Natural gas reserves accounted for
89% of proved reserves at December 31, 2000.
As a result of the January 2001 acquisition of Gothic, Chesapeake acquired total proved reserves of
302 bcfe at December 31, 2000 with an associated present value of proved reserves of $1.3 billion (based on
Gothic's weighted average prices at December 31, 2000 of $26.54 per barrel of oil and $10.19 per mcf of gas).
The following reserve data show the combined pro forma proved reserves of Chesapeake and Gothic at
-5-
Net Production:
Years Ended December 31,
1998 1999 2000
U.S. Canada Combined U.S. Canada Combined U.S. Canada Combined
Oil (mbbl) 5,975 15,976 4,147 -4,147 3,068 -3,068
Gas (mmcf) 86,681 7,740 94,421 96,873 11,737 108,610 103,694 12,077 115,771
Gas equivalent (mmcfe) 122,531 7,746 130,277 121,755 11,737 133,492 122,102 12,077 134,179
Oil and Gas Sales ($ in thousands):
Oil $ 75,867 $10 $ 75,877 $ 66,413 $$ 66,413 $80,953 $$ 80,953
Gas 173,042 7,968 181,010 200,055 13,977 214,032 355,391 33,826 389,217
Total oil and gas sales . . . $248,909 $7,978 $256,887 $266,468 $13,977 $280,445 $436,344 $33,826 $470,170
Average Sales Price:
Oil ($ per bbl) $12.70 $10.00 $12.70 $16.01 $$16.01 $26.39 $$26.39
Gas ($ per mcf) $2.00 $ 1.03 $1.92 $2.07 $1.19 $1.97 $3.43 $2.80 $3.36
Gas equivalent ($ per mcfe) ....$2.03 $ 1.03 $1.97 $2.19 $1.19 $2.10 $3.57 $2.80 $3.50
Expenses (S per mcfe):
Production expenses $0.40 $ 0.24 $0.39 $0.36 $0.18 $0.35 $0.38 $0.32 $0.37
Production taxes $0.07 $$0.06 $0.11 $$0.10 $0.20 $$0.19
General and administrative $0.16 $ 0.06 $0.15 $0.10 $0.08 $0.10 $0.09 $0.17 $0.10
Depreciation, depletion and
amortization $1.17 $ 0.43 $1.13 $0.73 $0.52 $0.71 $0.76 $0.71 $0.75
Oil
(mbbl) Gas
(mmcl)
Gas
Equivalent
(mmcfe)
Percent
of
Proved
Reserves
Present
Value
($ in thousands)
Mid-Continent 13,944 883,221 966,887 71% $4,293,715
Gulf Coast 4,010 133,661 157,719 12 825,891
Canada -158,964 158,964 12 680,800
Permian Basin 873 16,209 21,445 2117,190
Other areas 4,970 19,978 49,798 3128,432
Total 23,797 1,212,033 1,354,813 100% $6,046,028