Chesapeake Energy 2013 Annual Report Download - page 133

CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
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The volumes remaining to be delivered on behalf of our VPP buyers as of December 31, 2013 were as follows:
Volume Remaining as of December 31, 2013
VPP # Term Remaining Natural Gas Oil NGL Total
(in months) (bcf) (mmbbl) (mmbbl) (bcfe)
10 98 48.6 1.7 6.0 94.8
9 86 88.7 1.0 2.3 108.9
8 20 96.5 — — 96.5
6 73 21.4 0.2 — 22.3
5 37 16.9 0.1 — 17.2
4 36 24.3 0.1 — 25.1
3 67 31.1 — — 31.1
2 64 20.0 — — 20.0
1 108 105.4 — — 105.4
452.9 3.1 8.3 521.3
In September 2012, to facilitate the sales process associated with our Permian Basin divestiture packages, we
purchased the remaining reserves from our Permian Basin VPP (VPP #7), originally sold in June 2010, for $313 million.
The reserves purchased totaled 28 bcfe and were subsequently sold to the buyers of our Permian Basin assets.
13. Investments
A summary of our investments, including our approximate ownership percentage as of December 31, 2013 and
2012, is presented below.
Approximate Ownership % Carrying Value
Accounting December 31, December 31,
Method 2013 2012 2013 2012
($ in millions)
FTS International, Inc...................................... Equity 30% 30% $ 138 $ 298
Chaparral Energy, Inc. .................................... Equity 20% 20% 143 141
Sundrop Fuels, Inc.......................................... Equity 56% 50% 135 111
Clean Energy Fuels Corp.
(common stock) ........................................... Fair Value —% 1% — 12
Clean Energy Fuels Corp.
(convertible notes) ....................................... Cost —% —% — 100
Gastar Exploration Ltd. ................................... Fair Value —% 10% — 8
Other ............................................................... — —% —% 61 58
Total investments ......................................................................................................... $ 477 $ 728
FTS International, Inc. FTS International, Inc. (FTS), based in Fort Worth, Texas, is a privately held company
which, through its subsidiaries, provides hydraulic fracturing and other services to oil and gas companies. In 2013, we
recorded negative equity method and other adjustments, prior to intercompany profit eliminations, of $177 million for
our share of FTS’s net loss and recorded an accretion adjustment of $14 million related to the excess of our underlying
equity in net assets of FTS over our carrying value. The loss in 2013 primarily represents our proportionate share, net
of tax, of an impairment recorded by FTS related to its non-depreciable assets. Additionally, in 2013, we purchased
FTS common stock offered to existing stockholders for $3 million.