Chesapeake Energy 1999 Annual Report Download - page 74

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discussed previously, are equally applicable to the standardized measure computations since these estimates are the
basis for the valuation process.
The following summary sets forth the Company's future net cash flows relating to proved oil and gas reserves
based on the standardized measure prescribed in SFAS 69:
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$10.48 per barrel of oil and $1.68 per Mcf of gas.
Calculated using weighted average prices of$17.62 per barrel of oil and $2.29 per Mcf of gas.
-64-
December 31, 1999
U.S. Canada Combined
(S in thousands)
Future cash inflows (a) $ 2,555,241 $437,928 $2,993,169
Future production costs (671,431) (195,464) (866,895)
Future development costs (209,921) (20,950) (230,871)
Future income tax provision (219.866) (29,410) (249.276)
Net future cash flows 1,454,023 192,104 1,646,127
Less effect of a 10% discount factor (545.125) (94,390) (639.5 15)
Standardized measure of discounted future net cash flows $908.898 $97714 $1,006 612
Discounted (at 10%) future net cash flows before income taxes $991.748 $97.748 $1,089,496
December 31, 1998
U.S. Canada Combined
(S in thousands)
Future cash inflows (b) $ 1,374,280 $474,143 $1,848,423
Future production costs (432,876) (52,493) (485,369)
Future development costs (124,717) (29,634) (154,351)
Future income tax provision (6.464) (143.747) (150.211)
Net future cash flows 810,223 248,269 1,058,492
Less effect of a 10% discount factor (303.096) (132,281) (435,377)
Standardized measure of discounted future net cash flows $507,127 $115.988 $ 623.115
Discounted (at 10%) future net cash flows before income taxes $504.148 $156.843 $ 660.991
December 31, 1997
U.S. Canada Combined
(S in thousands)
Future cash inflows (c) $ 1,100,807 $$1,100,807
Future production costs (223,030) (223,030)
Future development costs (158,387) (158,387)
Future income tax provision (108.027) (108 027)
Net future cash flows 611,363 611,363
Less effect of a 10% discount factor (18 1.253) (18 1.253)
Standardized measure of discounted future net cash flows $430110 $$ 430.110
Discounted (at 10%) future net cash flows before income taxes $466.509 $S 466 509
June 30, 1997
U.S. Canada Combined
(S in thousands)
Future cash inflows (d) $954,839 $$ 954,839
Future production costs (190,604) (190,604)
Future development costs (152,281) (152,281)
Future income tax provision (104.183) (104.183)
Net future cash flows 507,771 507,771
Less effect of a 10% discount factor (92.273) (92,273)
Standardized measure of discounted future net cash flows $415.498 $$ 415.498
Discounted (at 10%) future net cash flows before income taxes $437 386 $$ 437386