Chesapeake Energy 2013 Annual Report Download - page 13

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5
___________________________________________
(a) Oil equivalent is based on six mcf of natural gas to one barrel of oil or one barrel of NGL. This ratio reflects an
energy content equivalency and not a price or revenue equivalency. In recent years, the price for a bbl of oil and
NGL has been significantly higher than the price for six mcf of natural gas.
(b) Includes revenue and operating costs and excludes depreciation and amortization, general and administrative
expenses, impairments of fixed assets and other, net gains or losses on sales of fixed assets and interest expense.
See Depreciation and Amortization of Other Assets, Impairments of Fixed Assets and Other and Net (Gains)
Losses on Sales of Fixed Assets under Results of Operations in Item 7 for details of the depreciation and
amortization and impairments of assets and net gains or losses on sales of fixed assets associated with our
marketing, gathering and compression and oilfield services operating segments.
(c) Includes stock-based compensation and excludes restructuring and other termination costs.
(d) Includes the effects of realized (gains) losses from interest rate derivatives, but excludes the effects of unrealized
(gains) losses from interest rate derivatives; amount is shown net of amounts capitalized. Realized (gains) losses
include settlements related to the current period interest accrual and the effect of (gains) losses on early terminated
trades. Unrealized (gains) losses include changes in the fair value of open interest rate derivatives offset by
amounts reclassified to realized (gains) losses during the period.
Natural Gas, Oil and NGL Reserves
The tables below set forth information as of December 31, 2013 with respect to our estimated proved reserves,
the associated estimated future net revenue and present value (discounted at an annual rate of 10%) of estimated
future net revenue before and after future income taxes (standardized measure) at such date. Neither the pre-tax
present value of estimated future net revenue nor the after-tax standardized measure is intended to represent the
current market value of the estimated natural gas, oil and NGL reserves we own. All of our estimated natural gas and
oil reserves are located within the U.S.
December 31, 2013
Natural Gas Oil NGL Total
(bcf) (mmbbl) (mmbbl) (mmboe)
Proved developed ............................................... 8,583 201 177 1,809
Proved undeveloped ........................................... 3,151 223 122 869
Total proved(a) ....................................................... 11,734 424 299 2,678
Proved
Developed Proved
Undeveloped Total
Proved
($ in millions)
Estimated future net revenue(b) ........................................................... $ 30,414 $ 17,921 $ 48,335
Present value of estimated future net revenue(b) .............................. $ 15,371 $ 6,305 $ 21,676
Standardized measure(b)(c) ............................................................................................................................ $ 17,390
Operating Division Natural
Gas Oil NGL Oil
Equivalent
Percent of
Proved
Reserves Present
Value
(bcf) (mmbbl) (mmbbl) (mmboe) ($ millions)
Southern .......................... 6,974 383 220 1,766 66% $ 15,087
Northern........................... 4,760 41 79 912 34% 6,589
Total............................. 11,734 424 299 2,678 100% $ 21,676 (b)
(a) Includes 61 bcf of natural gas, 2 mmbbl of oil and 6 mmbbl of NGL reserves owned by the Chesapeake Granite
Wash Trust, 30 bcf of natural gas, 1 mmbbl of oil and 3 mmbbl of NGL of which are attributable to the noncontrolling
interest holders.
(b) Estimated future net revenue represents the estimated future gross revenue to be generated from the production
of proved reserves, net of estimated production and future development costs, using prices and costs under
existing economic conditions as of December 31, 2013. For the purpose of determining "prices", we used the
unweighted arithmetic average of the prices on the first day of each month within the 12-month period ended