Chesapeake Energy 2007 Annual Report Download
Download and view the complete annual report
Please find the complete 2007 Chesapeake Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2 -
3 -
4 -
5 -
6 -
7 -
8 -
9 -
10 -
11 -
12 -
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
 |
 |
%/<<C/:@3>=@B
<Obc`OZ
B63/53=4
5Oa
b
Table of contents
-
Page 1
% / < < C/ : @ 3 > = @ B -
Page 2
1VSaO^SOYS3\S`Ug1]`^]`ObW]\ 1]`^]`ObS>`]¿ZS 1VSaO^SOYS3\S`Ug1]`^]`ObW]\WabVSZO`USabW\RS^S\RS\bO\RbVW`RZO`USab]dS`OZZ^`]RcQS`]T\Obc`OZ UOaW\bVSC A 6SOR_cO`bS`SRW\=YZOV][O1WbgbVSQ][^O\g¸a]^S`ObW]\aO`ST]QcaSR]\Sf^Z]`Ob]`g O\RRSdSZ]^[S\bOZR`WZZW\UO\RQ]`^]`ObS... -
Page 3
4W\O\QWOZ@SdWSe ! >`]dSR@SaS`dS5`]ebV 0QTSObS\R]TgSO` >`]RcQbW]\5`]ebV /dS`OUS[[QTS^S`ROgT]`gSO` `WQSa /dS`OUSgSO`Zg`WQS /b[]\bVS\R 1VSaO^SOYS¸a4WdSGSO`1][[]\Ab]QY>S`T]`[O\QS BVSORXOQS\bU`O^V... -
Page 4
1VSaO^SOYS3\S`Ug1]`^]`ObW]\ 4W\O\QWOZ@SdWSe W\[WZZW]\aSfQS^b^S`aVO`SRObO GSO`a3\RSR2SQS[PS`! 4W\O\QWOZO\R=^S`ObW\U2ObO % $ # " ! @SdS\cSa =WZO\R\Obc`OZUOaaOZSa =WZO\R\Obc`OZUOa[O`YSbW\UaOZSaO\RaS`dWQS... -
Page 5
4W\O\QWOZ@SdWSe AWf;]\bVa3\RSR 2SQS[PS`! GSO`a3\RSR8c\S! & "' '$' %# !! # "" & ´ ""' # ! '& $! #& !$ " " % ´ % ´ # !! ´ !! # ´ # "%& ""! ... -
Page 6
" 1VSaO^SOYS3\S`Ug1]`^]`ObW]\ -
Page 7
-
Page 8
$ 1VSaO^SOYS3\S`Ug1]`^]`ObW]\ /UZ]eW\bVS9O\aOaac\aSb O¿SZR]Tac\À]eS`aS^Wb][WhSa \Obc`OZOPc\RO\QS -
Page 9
-
Page 10
& 1VSaO^SOYS3\S`Ug1]`^]`ObW]\ 2]e\b]e\4]`bE]`bV ^`]dWRSaOR`O[ObWQPOQYR`]^ T]`O1VSaO^SOYS`WUR`WZZW\U " %W\bVS0O`\SbbAVOZS -
Page 11
-
Page 12
1VSaO^SOYS3\S`Ug1]`^]`ObW]\ >`]dWRW\UTcSZT]`/[S`WQO\ V][Sa\Obc`OZUOaWaO _cW\bSaaS\bWOZZg/[S`WQO\ TcSZ^`]RcQSRW\! abObSa T`][Q]Oabb]Q]Oab -
Page 13
-
Page 14
1VSaO^SOYS3\S`Ug1]`^]`ObW]\ =^S`ObW\U/`SOa ! " ! # $ % & ' AW\QS 1VSaO^SOYSVOaOQbWdSZgPcWZbbVS\ObW]\¸aZO`USab\Obc`OZUOa `Sa]c`QS POaS O\R \]e ]e\a O acPabO\bWOZ ZSOaSV]ZR ^]aWbW]\ W\ SdS`g [OX]`]\aV]`S\Obc`OZUOa`Sa]c`QS^ZOgSOab]TbVS@]QYg... -
Page 15
=^S`ObW\U/`SOa # /b`SSZW\SRQ]c\b`gZO\S\SO` 1VO`ZSab]\ESabDW`UW\WO VSOR_cO`bS`a]T1VSaO^SOYS¸a 3OabS`\2WdWaW]\ -
Page 16
! 1VSaO^SOYS3\S`Ug1]`^]`ObW]\ 4]`bE]`bV0O`\SbbAVOZS7\ %bVS4]`bE]`bV0O`\SbbAVOZSeOaOUOW\1VSaO ^SOYS¸aO`SO]TZO`USabW\dSab[S\bO\ReWZZPSbVS[]abW[^]`bO\bQ]\b`WPcb]`b]]c`U`]ebV W\ & 7\bVS0O`\Sbb1VSaO^SOYSWabVSaSQ]\RZO`USab^`]RcQS`]T\Obc`OZUOabVS... -
Page 17
=^S`ObW\U/`SOa " % 3OabBSfOa7\3OabBSfOa1VSaO^SOYSWaT]QcaSR]\RSdSZ]^W\UdO`W]cabWUVb\Obc`OZUOaaO\R T]`[ObW]\aW\[SRWc[b]RSS^V]`Wh]\aW\QZcRW\UbVS>SbbSbB`OdWa>SOYO\R1]bb]\DOZZSgT]`[O bW]\a 7\ORRWbW]\eSO`S]\S]TbVSb]^bV`SSZSOaSV]ZR]e\S`aW\bVSS[S`UW\U... -
Page 18
$ 1VSaO^SOYS3\S`Ug1]`^]`ObW]\ :SbbS`b]AVO`SV]ZRS`a ESZQ][Sb]bVS/US]T -
Page 19
:SbbS`b]AVO`SV]ZRS`a % /cP`Sg9 ;Q1ZS\R]\ 1VOW`[O\]TbVS0]O`R O\R1VWST3fSQcbWdS=T¿QS` -
Page 20
& 1VSaO^SOYS3\S`Ug1]`^]`ObW]\ ]WZO\R\Obc`OZUOa^`WQSa[]RSabZgZ]eS` `SOZWhSRVSRUW\UUOW\aO\RaZWUVbZgVWUVS` ]^S`ObW\UQ]ababVO\W\ $]c`Q][^O\g US\S`ObSRbVSab`]\U¿\O\QWOZO\R]^S`ObW\U `SacZbaVWUVZWUVbSRPSZ]e( Â' /dS`OUSROWZg]WZO\R\Obc`OZUOa^`] RcQbW]\W\Q`SOaSR... -
Page 21
:SbbS`b]AVO`SV]ZRS`a ' :O\R³B]RSZWdS`U`SOb`SacZbaU`SOb^S]^ZS \SSRU`SObOaaSbaO\R7PSZWSdS1VSaO^SOYS VOabVSPSabOaaSbaW\bVSC A 3>W\Rcab`g ES \]e ]e\ W\bS`Saba W\ O^^`]fW[ObSZg !&# ^`]RcQW\UeSZZaO\ReSO`SORR W\U []`S bVO\ !$ eSZZa SdS`g gSO` =c` ... -
Page 22
1VSaO^SOYS3\S`Ug1]`^]`ObW]\ 5`O\WbSEOaV^ZOga]TbVS/\ORO`Y]0OaW\W\ =YZOV][OO\RbVSBSfOa>O\VO\RZS EVS` SdS`bVS`SWaOPWU\Se]\aV]`S^ZOgW\bVS C A SOab]TbVS@]QYWSac\Q]\dS\bW]\OZ]` Q]\dS\bW]\OZg]ceWZZdS`gZWYSZg¿\R1VSaO ^SOYS`WUVbW\bVS[WRRZS]TWb AQWS\QS... -
Page 23
:SbbS`b]AVO`SV]ZRS`a PSQOcaSbVS@B1eOaOPZSb]^`SRWQbbVSg e]cZR\]bPSQ][[S`QWOZZg^`]RcQbWdS BVS@B1OZa]OZZ]eacab][]`S_cWQYZg SdOZcObS\SeWRSOaO\ROQQSZS`ObSQ][ [S`QWOZWhObW]\ ]T c\Q]\dS\bW]\OZ aVOZS ^ZOgabVS`SPgUWdW\U1VSaO^SOYSOb`S [S\R]caVSORabO`b]\]c`Q][^... -
Page 24
1VSaO^SOYS3\S`Ug1]`^]`ObW]\ O^ZO\\SRW\Q`SOaSW\]c`4OgSbbSdWZZS`WU Q]c\bT`][ `WUaQc``S\bZgb] #`WUaPg gSO`S\R & 4W\OZZg7e]cZRZWYSb]VWUVZWUVb]c`\Se SabaVOZSacQQSaaab]`g³bVS6Og\SadWZZS AVOZSW\:]cWaWO\O BVWaWaO^`]XSQbRSdSZ ]^SRW\V]caSbe]gSO`aOU]O\R... -
Page 25
:SbbS`b]AVO`SV]ZRS`a ! @WaW\UT`][bVS`SRSO`bV]T =YZOV][OO1VSaO^SOYS`WU R`WZZaT]`\Obc`OZUOaW\bVS ZOg -
Page 26
" 1VSaO^SOYS3\S`Ug1]`^]`ObW]\ RObW]\ /1A4 eOa T]`[SR bV`]cUV U`O\ba T`][ 1VSaO^SOYS O\R ]bVS`a 7b Wa O EOaVW\Ub]\ 2 1 POaSR T]c\RObW]\ RSRWQObSRb]^`][]bW\US\S`UgQ]\aS`dO bW]\O\RbVSU`SObS`caS]TQZSO\S`TcSZa W\QZcRW\U\Obc`OZUOab][SSb]c`Q]c\ b`g¸a \SSR ... -
Page 27
...7ab`]\UZgPSZWSdSbVWa[O\OUS[S\bbSO[ WaQ][T]`bOPZSO\bWQW^ObW\UO\R`Sa^]\RW\U b]]^^]`bc\WbWSaO\RQVOZZS\USaW\]c`W\ Rcab`g 7\TOQb7e]cZRV]^SbVOb]PaS`dS`a aSS1VSaO^SOYSOabVS[]abRg\O[WQO\R ORO^bOPZSQ][^O\gW\]c`W\Rcab`g 3dS`aW\QSS\bS`W\UbVWaW\Rcab`g %gSO`a OU... -
Page 28
$ 1VSaO^SOYS3\S`Ug1]`^]`ObW]\ -
Page 29
% A]QWOZ @Sa^]\aWPWZWbg 2=7 -
Page 30
& 1VSaO^SOYS3\S`Ug1]`^]`ObW]\ 1VO`WbOPZSAc^^]`b /a1VSaO^SOYSSf^Z]`SaT]`O\R^`]RcQSa\Obc`OZ UOa]c`]^S`ObW]\aW\dWU]`ObSbVSSQ]\][WSaO\R W[^`]dSbVSW\T`Oab`cQbc`Sa]TS\bW`S`SUW]\a /a OQ]`^]`ObSQWbWhS\Q][[WbbSRb]SfQSZZS\QSW\OZZ bVObeSR]1VSaO^SOYS^`]dWRSa[cQV\SSRSR ... -
Page 31
A]QWOZ@Sa^]\aWPWZWbg ' 3\ac`W\U3[^Z]gSS6SOZbV O\RAOTSbg 3\ac`W\UbVOb]c`S[^Z]gSSa`Sbc`\V][SaOTSZg SOQVROgWaSa^SQWOZZgW[^]`bO\bOb1VSaO^SOYS 2`WZZW\UT]`\Obc`OZUOaQO\]QQOaW]\OZZgZSORb] OQQWRS\baO\ReS[OYSWbOb]^^`W]`Wbgb]`SRcQS ]\bVSX]P W\Xc`WSa bV`]cUV b`OW... -
Page 32
! 1VSaO^SOYS3\S`Ug1]`^]`ObW]\ 0cWZRW\U0SbbS`1][[c\WbWSa =dS`bVSgSO`a1VSaO^SOYSVOaRSdSZ]^SRO`S^cbObW]\Oa]\S]TbVS[]ab^VWZO\bV`]^WQQ]`^]`ObW]\aW\bVSC A 7b¸aXcab]\S]TbVSeOgaeSRS[]\ab`ObS]c`Q][[Wb[S\bb]bVSQ][[c\WbWSaW\eVWQVeS]^S`ObS 6OPWbObT]`6c[O\Wbg ;OYSa... -
Page 33
0cWZRW\U0SbbS`1][[c\WbWSa ! 2WaQ]dS`W\UB][]``]e¸a :SORS`aW\HO^ObO AbcRS\bZSORS`aW\HO^ObOBSfOaeS`S`SQ]U\WhSR bV`]cUV 1VSaO^SOYS¸a 2WaQ]dS`W\U B][]``]e¸a :SORS`a3RcQObW]\OZA^]\a]`aVW^>`]U`O[ BVS eSSY^`]U`O[OaYSRHO^ObO`SaWRS\bab]\][W \ObSg]c\U[S[PS`a]TbVSZ]... -
Page 34
! 1VSaO^SOYS3\S`Ug1]`^]`ObW]\ 6SOZbVAOTSbgO\R3\dW`]\[S\b6A3 @SQ]U\WhW\UWba`]ZSOaOabSeO`R]TbVSS\dW`]\[S\b1VSaO^SOYSbOYSaU`SOb^`WRSW\bVS aOTS^`]RcQbW]\]TQZSO\Pc`\W\U\Obc`OZUOa -
Page 35
6SOZbVAOTSbgO\R3\dW`]\[S\b !! :]\UAbO\RW\U>O`b\S`aVW^ EWbVBVS -
Page 36
!" 1VSaO^SOYS3\S`Ug1]`^]`ObW]\ 0]O`R]T2W`SQb]`a /cP`Sg9 ;Q1ZS\R]\ 1VOW`[O\]TbVS0]O`R O\R1VWST3fSQcbWdS=T¿QS` =YZOV][O1Wbg=9 @WQVO`R9 2OdWRa]\ 4]`[S`13=O\R1VOW`[O\ C\W]\>OQW¿Q1]`^]`ObW]\ =[OVO`SaWRS\bO\R13= /[S`... -
Page 37
...DWQS>`SaWRS\b O\R1VWST4W\O\QWOZ=T¿QS` AbSdS\1 2Wf]\ 3fSQcbWdSDWQS>`SaWRS\b³ =^S`ObW]\aO\R1VWST=^S`ObW\U=T¿QS` 2]cUZOa8 8OQ]Pa]\ 3fSQcbWdSDWQS>`SaWRS\b³ /Q_cWaWbW]\aO\R2WdSabWbc`Sa 8 ;O`Y:SabS` 3fSQcbWdSDWQS>`SaWRS\b³ 3f^Z]`ObW]\ ;O`bVO/ 0c`US` AS\W]`DWQS... -
Page 38
...[PS`a 2OZS1]]Y BSR2OdWa ;O\Rg2cO\S 9gZS3aa[WZZS` AbSdS5OaYW\a 8S\\WTS`5`WUaPg 1ZWTT6O\]QV 5OgZS6O``Wa 1O`]Z6]ZRS\ 6S\`g6]]R :]``WS8OQ]Pa ;WYS8]V\ab]\ 8SaaS:O\UT]`R8` 0O``g:O\UVO[ 1W\Rg:S0ZO\Q :SZO\R;c``Og 4`SR>]`bWZZ] 8]V\?cOZZa >Ob@]ZZO 6O\YAQVSSZ 1VO`ZSaAQV]Zh 1VO`ZWSA[WbV... -
Page 39
=c`3[^Z]gSSa !% 2S`SY2Wf]\ AbSdS2]\ZSg AVO`]\2`WSa AVO\]\2c\ZO^ 8]Rg2c\\ 5O`g2c`YSS 8OQY3ZZW]bb 8W[[g3[PS`g 1VO`ZS\S3`\Sab 9SWbV3`dW\ 8W[4O\aVS` C`acZO4Oca 1O`]Z4SV`S\POQVS` ;O`Y4S`P`OQVS 8STT/ 4WaVS` 2OdWR4ZWSa ;WbQV4Z]`SaQO B][[g4]cab B @ 4]f 8cabW\4`]SVZWQV 3RR5OPPO`b 4`... -
Page 40
... 8]V\1]ZZSbbS 9SdW\1]ZZW\a BWTTO\g1]ZZW\a 1V`WabWO\1][Pa 2]cUZOa1][Pa 5O`g1][^b]\ ;WQVSZS1][^b]\ 0WZZ1]\\O`R >OcZ1]\eOg AbS^...ZWdO`Sa8` ;WQVSZS=ZWdS` 8]V\=¸ORUSbb 8]S>OSbh]ZR... -
Page 41
...bVg1]QYS`VO[77 0`S\b1]QY`SZZ :Oc`S\1]Q] @gO\1]S 0g`]\1]ZS AO`OV1]ZS DW`UWZ1]ZS[O\ 2Odg1]ZZW\a 9ObWS1]ZZW\a 2SS1][Pa 8Oa]\1]\OeOg 5`SU1]\R`Og @]\OZR1]\TS` 8STT1]\ZSg 1V`Waag1]\\S` /\Rg1]\gS`a 0ZOg\S1]]Y 8W[1]]Y ;SZWaaO1]]Y 8OQ]P1]]^S` :O``g1]]^S` :W\RO1]]^S` 8cabW\1]]ba AQ]bb... -
Page 42
... 8]S8OQYa]\ :W\RaOg8OQYa]\ ;O`WO\\S8OQYa]\ >O[SZO8OQYa]\ 8]V\\WS8OQ]Pa 9`WabW8OQ]Pa B`]g8OQ]Pa 8OdSg8O[Wa]\ :O\QS8O[Wa]\ B]RR8O[Wa]\ 1V`Wab]^...WQVOSZ=ZWdS` ;O`Y=`U`S\ 1V`Wabg=`]aQ] 9SWbV=``WQY @O\Rg=`aPc`\ 2]\=aP]`\ ;ObbVSe=aP]`\S @]PS`b=aeOZb 2O``SZ=dS`UOO`R 1OaSg=dS`VcZbh 2S=dS`... -
Page 43
=c`3[^Z]gSSa " ;WQVOSZ>Og\S @WQYSg>Ogb]\ 2O\WSZ>SO`QS 0ZOW\>SO`a]\ 1VSabS`>SO`a]\ 9W[>SO`a]\ /`WSZ>S\O 2O\WSZZS>S\ZO\R AOP`W\O>S^^S` BS``g>S`RcS 8]S>S`Sh /RRWS>SaQVS B]RR>Sbbca 8STT>VWZZW^a >OcZ>VWZZW^a DORS\\O>VWZZW^a /ZO\>WS`QS ;O`bg>WS`QS 8O[Sa>W\S ;Obb>W\W]\ 8STT>W\bS` ... -
Page 44
...[cSZ2WOh 2O\WSZ2WTTSg 0`gO\2WZUS` 9OgS2WZZW\UVO[ 2O\\g2W\YW\a77 2cabW\2Wf]\ B`OQg2Wf]\ 2]\OZR2]PPa 9`Wab]^VS`2]PPa ;O`bW\2]Pa]\ 8S\aS\2]Pg 2cabW\2]S`` 9gZS2]ZShOZ 1VOR2][S EWZZWO[2]\OV]S777 9SdW\2]\OZRa]\ ;WQVOSZ2]\WaQV AbS^VO\WS2]]ZWbbZS HOQV2]`aSg /RO[2]aa :]\\WS2]aaSg /\UWS... -
Page 45
... 3`\WS7aS\VO`b 9ObS7dSg ;]\ac`c7gO\RO :cQW]7hUcS``O /ZO\8OQYa]\ /\USZO8OQYa]\ 0SdS`Zg8OQYa]\ 1O`O8OQYa]\ 8]V\/ 8OQYa]\8` @]US`8OQYa]\ 8]aVcO8OQ]Pa :O``g8OQ]Pa 1]Rg8OQ]eOg 8]aS8OQ_cSh 8S`S[g8O[Sa 9S\8O[Sa B][[g8O[Wa]\ DWQb]`8O`O[WZZ] AbS^VO\WS8O`]\SY ;SZW\RO8Og 0WZZg... -
Page 46
"" 1VSaO^SOYS3\S`Ug1]`^]`ObW]\ 8]Rg>]bbS` ;WQVOSZ>]eR`WZZ 4`SR>]eSZZ 8S``g>]eSZZ8` B`]g>]eSZZ 9S\\SbV@ >`O\UZS`8` B][[g>`ObS` 8O\\O>`Obb 8cRg>`Obb ;Wb`O>`Obb @]PS`b>`SSQS 2OdWR>`S\Obb ;WQVSZS>`SaZSg 1`Wa>`WPgZ 9`Wab]^VS`>`WQS AOdO\\OV>`WQS B`O[^]ca>`WQS 2O``SZZ>`WRS[]`S ... -
Page 47
1]`^]`ObS7\T]`[ObW]\ 1]`^]`ObS7\T]`[ObW]\ 1]`^]`ObS6SOR_cO`bS`a $ -
Page 48