Chesapeake Energy 2010 Annual Report Download - page 88

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The following table reflects the proceeds from sales of securities we issued in 2010, 2009 and 2008 ($ in
millions):
2010 2009 2008
Total
Proceeds
Net
Proceeds
Total
Proceeds
Net
Proceeds
Total
Proceeds
Net
Proceeds
Convertible preferred stock ....... $ 2,600 $ 2,562 $ — $ — $ — $ —
Senior notes .................... 2,000 1,967 1,425 1,346 800 787
Contingent convertible senior
notes ........................ ————1,380 1,349
Common stock .................. ————2,698 2,598
Total ........................ $ 4,600 $ 4,529 $ 1,425 $ 1,346 $ 4,878 $ 4,734
The following table reflects proceeds we received from our significant natural gas and oil asset
monetizations in 2010, 2009 and 2008 ($ in millions):
2010 2009 2008
Natural gas and oil property monetizations:
CNOOC (Eagle Ford) industry participation agreement(a) .............. $ 1,170 $ — $ —
TOT (Barnett) industry participation agreement(b) .................... 1,361 — —
STO (Marcellus) industry participation agreement(c) .................. 601 162 1,250
PXP (Haynesville) industry participation agreement(d) ................. — 1,490 1,722
BP (Fayetteville) industry participation agreement(e) .................. — 601 1,299
BP (Mid-Continent) divestiture .................................... — — 1,688
Volumetric production payments .................................. 1,622 408 1,579
Other divestitures .............................................. 750 418 403
Total ....................................................... $ 5,504 $ 3,079 $ 7,941
(a) 2010 included $50 million of drilling carries. As of December 31, 2010, $1.030 billion of drilling carry
obligations remained outstanding.
(b) 2010 included $561 million of drilling carries. As of December 31, 2010, $889 million of drilling carry
obligations remained outstanding.
(c) 2010 and 2009 proceeds were in the form of drilling carries. As of December 31, 2010, $1.362 billion of
drilling carry obligations remained outstanding.
(d) 2009 and 2008 included $390 million and $72 million of drilling carries, respectively. 2009 also included a
$1.1 billion acceleration of future drilling carries.
(e) 2009 and 2008 included $601 million and $199 million of drilling carries, respectively.
In December 2010, our wholly owned midstream subsidiary, Chesapeake Midstream Development, L.P.,
sold its Springridge natural gas gathering system and related facilities in the Haynesville Shale to CHKM for
$500 million.
In September 2009, we received $588 million from the sale of a noncontrolling interest in our midstream
joint venture agreement with GIP.
In June 2009, we received net proceeds of $54 million from the mortgage financing of our regional Barnett
Shale headquarters building in Fort Worth, Texas. The interest-only loan has a five-year term at a floating rate
of prime plus 275 basis points. At our option, we may prepay the loan in full without penalty beginning in year
four.
In April 2009, we financed 113 real estate surface assets in the Barnett Shale area in and around Fort
Worth, Texas for net proceeds of approximately $145 million and entered into a master lease agreement under
which we agreed to lease the assets for 40 years for approximately $15 million to $27 million annually. This
lease transaction was recorded as a financing lease.
In 2010, 2009 and 2008, we received $621 million and $109 million, and paid $167 million, respectively, for
settlements of derivatives which were classified as cash flows from financing activities.
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