Chesapeake Energy 2000 Annual Report Download - page 85

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-74-
Calculated using weighted average prices of $10.48 per barrel of oil and $1.68 per mcf of gas.
Calculated using weighted average prices of $24.72 per barrel of oil and $2.25 per mcf of gas.
Calculated using weighted average prices of $26.41 per barrel of oil and $10.12 per mcf of gas.
Based on the adjusted cash spot price for natural gas and oil at December 31, 2000. These prices are significantly higher than the prices
received in 2000.
In January 2001, Chesapeake acquired Gothic Energy Corporation. Gothic reported $858 million as its
standardized measure of discounted future net cash flows and $1.27 billion as its discounted future net cash flows
before income taxes at December 31, 2000.
December 31, 1999
U.S. Canada Combined
($ in thousands)
Future cash inflows(b)
Future production costs
Future development costs
Future income tax provision
$ 2,555,241
(671,431)
(209,921)
(219,866)
$ 437,928
(195,464)
(20,950)
(29,410)
$ 2,993,169
(866,895)
(230,871)
(249,276)
Net future cash flows
Less effect of a 10% discount factor 1,454,023
(545,125) 192,104
(94,390) 1,646,127
(639,515)
Standardized measure of discounted future net cash flows $908,898 $97,714 $ 1,006,612
Discounted (at 10%) future net cash flows before income taxes $991,748 $97,748 $ 1,089,496
December 31, 2000
U.S. Canada Combined
($ in thousands)
Future cash inflows(c)
Future production costs
Future development costs
Future income tax provision
$11,336,112
(1,778,325)
(294,359)
(3,247,701)
$1,540,158
(79,427)
(21,185)
(447,887)
$12,876,270
(1,857,752)
(315,544)
(3,695,588)
Net future cash flows
Less effect of a 10% discount factor 6,015,727
(2,440,407) 991,659
(503,718) 7,007,386
(2,944,125)
Standardized measure of discounted future net cash flows $ 3,575,320 $ 487,941 $ 4,063,261
Discounted (at 10%) future net cash flows before income taxes $ 5,365,228 $ 680,800 $ 6,046,028(d)
Chesapeake and Gothic on a combined basis at December 31,
Future cash flows
Future production costs
Future development costs
Future income tax provision
Net future cash flows
Less effect of a 10% discount factor
Standard measure of discounted future net cash flows
Discounted (at 10%) future net cash flows before income taxes
2000:
U.S. Canada Combined
$14,341,562
(2,128,696)
(336,619)
(4,091,330)
($ in thousands)
$1,540,158
(79,427)
(21,185)
(447,887)
$15,881,720
(2,208,123)
(357,804)
(4,539,217)
7,784,917
(3,352,024) 991,659
(503,718) 8,776,576
(3,855,742)
$ 4,432,893 $ 487,941 $ 4,920,834
$ 6,631,731 $ 680,800 $ 7,312,531