Chesapeake Energy 2014 Annual Report Download - page 125
Download and view the complete annual report
Please find page 125 of the 2014 Chesapeake Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115 -
116 -
117 -
118 -
119 -
120 -
121 -
122 -
123 -
124 -
125 -
126 -
127 -
128 -
129 -
130 -
131 -
132 -
133 -
134 -
135 -
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
 |
 |
CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
117
Effect of Derivative Instruments – Consolidated Statements of Operations
The components of oil, natural gas and NGL sales for the years ended December 31, 2014, 2013 and 2012 are
presented below.
Years Ended December 31,
2014 2013 2012
($ in millions)
Oil, natural gas and NGL sales $ 7,162 $ 6,923 $ 5,359
Gains on undesignated oil and natural gas derivatives 1,055 443 857
Gains (losses) on terminated cash flow hedges (37) (314) 62
Total oil, natural gas and NGL sales $ 8,180 $ 7,052 $ 6,278
The components of interest expense for the years ended December 31, 2014, 2013 and 2012 are presented
below.
Years Ended December 31,
2014 2013 2012
($ in millions)
Interest expense on senior notes $ 704 $ 740 $ 732
Interest expense on term loans 36 116 173
Amortization of loan discount, issuance costs and other 42 91 89
Interest expense on credit facilities 28 38 70
Gains on terminated fair value hedges (3) (5) (8)
(Gains) losses on undesignated interest rate derivatives (81) 63 1
Capitalized interest (637) (816) (980)
Total interest expense $ 89 $ 227 $ 77
Effect of Derivative Instruments – Accumulated Other Comprehensive Income (Loss)
A reconciliation of the changes in accumulated other comprehensive income (loss) in our consolidated statements
of stockholders’ equity related to our cash flow hedges is presented below.
Years Ended December 31,
2014 2013 2012
Before
Tax After
Tax Before
Tax After
Tax Before
Tax After
Tax
($ in millions)
Balance, beginning of period $ (269) $ (167) $ (304) $ (189) $ (287) $ (178)
Net change in fair value 11 3 2 10 6
Gains (losses) reclassified to income 37 23 32 20 (27) (17)
Balance, end of period $ (231) $ (143) $ (269) $ (167) $ (304) $ (189)
Approximately $136 million of the $143 million of accumulated other comprehensive loss as of December 31,
2014 represents the net deferred loss associated with commodity derivative contracts that were previously designated
as cash flow hedges for which the hedged production is still expected to occur. These amounts will be recognized in
earnings in the month in which the originally forecasted hedged production occurs. As of December 31, 2014, we
expect to transfer approximately $23 million of net loss included in accumulated other comprehensive income to net
income during the next 12 months. The remaining amounts will be transferred by December 31, 2022.