Chesapeake Energy 2000 Annual Report Download - page 82

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-71-
(a) The imputed income tax provision is hypothetical (at the statutory rate) and determined without regard to our deduction for general and
administrative expenses, interest costs and other income tax credits and deductions, nor whether the hypothetical tax benefits will be
realized.
Capitalized costs, less accumulated amortization and related deferred income taxes, cannot exceed an amount
equal to the sum of the present value (discounted at 10%) of estimated future net revenues less estimated future
expenditures to be incurred in developing and producing the proved reserves, less any related income tax effects. At
December 31, 1998 capitalized costs of oil and gas properties exceeded the estimated present value of future net
revenues for our proved reserves, net of related income tax considerations, resulting in writedowns in the carrying
value of oil and gas properties of $826 million.
Oil and Gas Reserve Quantities (unaudited)
The reserve information presented below is based upon reports prepared by independent petroleum engineers
and Chesapeake's petroleum engineers.
As of December 31, 1998, Williamson Petroleum Consultants, Inc., Ryder Scott Company L.P., H,J.
Gruy and Associates, Inc. and our internal reservoir engineers evaluated 63%, 12%, 1% and 24% of the
combined discounted future net revenues from our estimated proved reserves, respectively.
As of December 31, 1999, Williamson, Ryder Scott, and our internal reservoir engineers evaluated 50%,
16%, and 34% of the combined discounted future net revenues from our estimated proved reserves,
respectively.
As of December 31, 2000, Williamson, Ryder Scott, Lee Keeling and Associates and our internal
reservoir engineers evaluated 31%, 25%, 16% and 28% of our combined discounted future net revenues
from our estimated proved reserves, respectively.
Year Ended December 31, 1998 U.S. Canada Combined
($ in thousands)
Oil and gas sales $ 248,909 $7,978 $ 256,887
Production expenses (49,368) (1,834) (51,202)
Production taxes (8,295) -(8,295)
Impairment of oil and gas properties (810,610) (15,390) (826,000)
Depletion and depreciation (143,283) (3,361) (146,644)
Imputed income tax (provision) benefit (a) 285,981 5,673 291,654
Results of operations from oil and gas producing activities $(476,666) $ (6,934) $(483,600)
Year Ended December 31, 1999 U.S. Canada Combined
(S in thousands)
Oil and gas sales $ 266,468 $ 13,977 $ 280,445
Production expenses (44,165) (2,133) (46,298)
Production taxes (13,264) -(13,264)
Depletion and depreciation (88,901) (6,143) (95,044)
Imputed income tax (provision) benefit(a) (45,052) (2,565) (47,617)
$75,086 $3,136 $78,222
Results of operations from oil and gas producing activities
Year Ended December 31, 2000 U.S. Canada Combined
($ in thousands)
Oil and gas sales $ 436,344 $33,826 $ 470,170
Production expenses (46,280) (3,805) (50,085)
Production taxes (24,840) -(24,840)
Depletion and depreciation (92,708) (8,583) (101,291)
Imputed income tax (provision) benefit(a) (103,556) (9,647) (113,203)
$ 168,960 $ 11,791 $ 180,751
Results of operations from oil and gas producing activities