Chesapeake Energy 2013 Annual Report Download - page 60

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Our company-wide reorganization in the 2013 second half resulted in two operating divisions replacing the four
operating divisions we previously reported. 2012 and 2011 have been revised to reflect our current organization. The
following tables show our production and average sales prices received by operating division for 2013, 2012 and 2011:
2013
Natural Gas Oil NGL Total
(bcf) ($/mcf)(a) (mmbbl) ($/bbl)(a) (mmbbl) ($/bbl)(a) (mmboe) % ($/boe)(a)
Southern(b) 692.9 2.09 37.6 95.57 16.7 26.32 169.7 69 32.30
Northern(c) 401.7 2.44 3.5 90.82 4.2 33.95 74.7 31 19.28
Total(d) 1,094.6 2.22 41.1 95.17 20.9 27.87 244.4 100% 28.33
2012
Natural Gas Oil NGL Total
(bcf) ($/mcf)(a) (mmbbl) ($/bbl)(a) (mmbbl) ($/bbl)(a) (mmboe) % ($/boe)(a)
Southern(b) 868.0 1.68 30.3 90.78 15.8 28.78 190.8 81 24.43
Northern(c) 260.8 2.10 1.0 81.60 1.8 39.73 46.2 19 15.11
Total(d) 1,128.8 1.77 31.3 90.49 17.6 29.89 237.0 100% 22.61
2011
Natural Gas Oil NGL Total
(bcf) ($/mcf)(a) (mmbbl) ($/bbl)(a) (mmbbl) ($/bbl)(a) (mmboe) % ($/boe)(a)
Southern(b) 867.8 3.06 16.4 90.00 13.5 39.62 174.5 88 26.76
Northern(c) 136.3 3.48 0.6 83.60 1.2 55.34 24.5 12 24.03
Total(d) 1,004.1 3.12 17.0 89.80 14.7 40.96 199.0 100% 26.42
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(a) The average sales price excludes gains (losses) on derivatives.
(b) Our Southern Division includes the Eagle Ford, Granite Wash/Hogshooter, Cleveland, Tonkawa and Mississippi
Lime unconventional liquids plays and the Haynesville/Bossier and Barnett unconventional natural gas shale
plays. The Eagle Ford Shale accounted for approximately 19% of our estimated proved reserves by volume as
of December 31, 2013. Production for the Eagle Ford Shale for 2013, 2012 and 2011 was 31.7 mmboe, 17.8
mmboe and 3.5 mmboe, respectively. The Barnett Shale accounted for approximately 16% of our estimated
proved reserves by volume as of December 31, 2013. Production for the Barnett Shale for 2013, 2012 and 2011
was 28.9 mmboe, 30.3 mmboe and 23.9 mmboe, respectively. Our gathering agreements for Barnett and
Haynesville require us to pay the service provider a fee for any production shortfall below certain annual minimum
gathering volume commitments. These fees amounted to $0.03 per mcf in 2013, and we anticipate incurring
shortfall fees in 2014 based on current production estimates.
(c) Our Northern Division includes the Utica and Niobrara unconventional liquids plays and the Marcellus
unconventional natural gas play. The Marcellus Shale accounted for approximately 25% of our estimated proved
reserves by volume as of December 31, 2013. Production for the Marcellus Shale for 2013, 2012 and 2011 was
62.9 mmboe, 40.5 mmboe and 20.2 mmboe, respectively.
(d) 2013, 2012 and 2011 production levels reflect the impact of various asset sales and joint ventures. See Note 12
of the notes to our consolidated financial statements included in Item 8 of this report for information on our natural
gas and oil property divestitures and joint ventures.
Our average daily production of 670 mboe for 2013 consisted of approximately 3.0 bcf of natural gas (75% on
an oil equivalent basis), approximately 169,800 bbls of liquids, consisting of approximately 112,600 bbls of oil (17%
on an oil equivalent basis) and approximately 57,200 bbls of NGL (8% on an oil equivalent basis). Our year-over-year
growth rate of oil production was 32% and our year-over-year growth rate of NGL production was 19%. Natural gas
production declined 3% year over year primarily as a result of asset sales.