Chesapeake Energy 2013 Annual Report Download - page 51

43
Cash provided by operating activities was $4.614 billion in 2013 compared to $2.837 billion in 2012 and $5.903
billion in 2011. The increase in cash provided by operating activities from 2012 to 2013 is primarily the result of an
increase in prices received for natural gas, oil and NGL sold (excluding the effect of gains or losses on derivatives)
from $22.61 per boe in 2012 to $28.33 per boe in 2013, an increase in oil and NGL sales volumes and decreases in
certain of our operating expenses per unit. The decline in cash provided by operating activities from 2011 to 2012 is
primarily the result of a decrease in the natural gas price received for natural gas sold (excluding the effect of gains
or losses on derivatives) from $3.12 per mcf in 2011 to $1.77 per mcf in 2012. Changes in cash flow from operations
are largely due to the same factors that affect our net income, excluding various non-cash items such as depreciation,
depletion and amortization, impairments of natural gas and oil properties and other assets, deferred income taxes and
mark-to-market changes in our derivative instruments. See the discussion below under Results of Operations.
The following table reflects the proceeds received from issuances of debt in 2013, 2012 and 2011. See Note 3
of the notes to our consolidated financial statements included in Item 8 of this report for further discussion.
Years Ended December 31,
2013 2012 2011
Principal
Amount
of
Debt
Issued Net Proceeds
Principal
Amount
of
Debt
Issued Net Proceeds
Principal
Amount
of
Debt
Issued Net Proceeds
($ in millions)
Senior notes ................................... $2,300 $ 2,274 $ 1,300 $ 1,263 $ 1,650 $ 1,614
Term loans...................................... —— 6,000 5,722 — —
Total ......................................... $2,300 $ 2,274 $ 7,300 $ 6,985 $ 1,650 $ 1,614
Our $4.0 billion corporate revolving bank credit facility, our $500 million oilfield services revolving bank credit
facility and cash and cash equivalents are other sources of liquidity. We use these revolving bank credit facilities and
cash on hand to fund daily operating activities and capital expenditures as needed. We borrowed $7.669 billion and
repaid $7.682 billion in 2013, borrowed $20.318 billion and repaid $21.650 billion in 2012 and borrowed $15.509 billion
and repaid $17.466 billion in 2011 under our revolving bank credit facilities. Our corporate facility is secured by natural
gas and oil proved reserves. A significant portion of our natural gas and oil reserves is currently unencumbered and
therefore available to be pledged as additional collateral if needed to respond to borrowing base and collateral
redeterminations our lenders might make in the future. We believe our borrowing capacity under this facility will not be
reduced as a result of any such future redeterminations. Our oilfield services facility is secured by substantially all of
our wholly owned oilfield services assets and is not subject to periodic borrowing base redeterminations. Prior to June
15, 2012, we also had a $600 million midstream revolving bank credit facility, which we terminated in June 2012. Our
revolving bank credit facilities are described below under Bank Credit Facilities.