Chesapeake Energy 2000 Annual Report Download - page 78

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If the swap arrangements listed above had been settled on December 31, 2000, we would have realized a gain of
$9.3 million. Subsequent to December 31, 2000, we settled the crude oil swap for January 2001 for a gain of $0.1
million and February for a gain of $41,350, which will be recognized as a price adjustment in January and
February 2001.
Subsequent to December 31, 2000, we entered into the following natural gas swap arrangements designed to
hedge a portion of our domestic gas production for periods after December 2000:
NYMEX-Index
Volume Strike Price
Months (mmbtu) (per mmbtu)
March 2001 310,000 $5.93
April 2001 300,000 5.66
May 2001 930,000 5.34
June 2001 900,000 5.37
July 2001 930,000 5.40
August 2001 930,000 5.42
September 2001 900,000 5.38
October 2001 1,240,000 5.40
The natural gas swap for March 2001 was settled for a gain of $0.3 million which will be recognized as a price
adjustment in March 2001. If we had settled the remaining swaps (April through October) using March 21, 2001
prices, we would have realized a gain of $1.0 million
Subsequent to December 31, 2000, we entered into the following natural gas collar transactions designed to
hedge a portion of our domestic gas production for periods after December 2000:
Subsequent to December 31, 2000, we entered into natural gas cap-swaps designed to hedge a portion of our
domestic gas production for periods after December 2000. This transaction requires that we pay the counterparty if
the NYMEX price exceeds an average NYMEX-defined strike price. If the NYMEX price is less than the strike
price, the counterparty pays us. However, the counterparty's payment is capped.
-67-
Volume
NYMEX
Defined
High
Strike Price
NYMEX
Defined
Low
Strike Price
Months (mmbtu) (per mmbtu) (per mmbtu)
June 2001 600,000 $ 6.80 $ 5.00
July 2001 620,000 6.80 5.00
August 2001 620,000 6.80 5.00
September 2001 600,000 6.80 5.00
January 2002 620,000 5.75 4.00
February 2002 560,000 5.75 4.00
March 2002 620,000 5.75 4.00
April 2002 1,200,000 5.38 4.00
May 2002 1,240,000 5.38 4.00
June 2002 1,200,000 5.38 4.00
July 2002 1,240,000 5.38 4.00
August 2002 1,240,000 5.38 4.00
September 2002 1,200,000 5.38 4.00
October 2002 1,240,000 5.38 4.00
November 2002 600,000 5.75 4.00
December 2002 620,000 5.75 4.00