Chesapeake Energy 2014 Annual Report Download - page 67

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rate derivatives and net of amounts capitalized, was $0.63 per boe in 2014 compared to $0.65 per boe in 2013 and
$0.35 per boe in 2012.
Losses on Investments. Losses on investments were $80 million in 2014 compared to losses of $226 million in
2013 and losses of $103 million in 2012. The 2014 losses primarily relate to our equity in the net losses of FTS
International, Inc. (FTS) and Sundrop Fuels, Inc. (Sundrop). Losses in 2013 primarily relate to our equity in the net
loss of FTS and Sundrop, offset by our equity in the net income of Chaparral Energy, Inc. Losses in 2012 primarily
relate to our equity in the net loss of FTS. See Note 14 of the notes to our consolidated financial statements included
in Item 8 of this report for a discussion of our investments.
Net Gains (Losses) on Sales of Investments. We recorded net gains on sales of investments of $67 million in
2014 compared to net losses of $7 million in 2013 and net gains of $1.092 billion in 2012. In 2014, we sold all of our
interest in Chaparral Energy, Inc. for cash proceeds of $215 million and recorded a $73 million gain related to the sale.
In addition, we sold an equity investment in a natural gas trading and management firm for cash proceeds of $30 million
and recorded a loss of $6 million associated with the transaction. In 2013, we sold all of our shares of Clean Energy
Fuels Corp. (Clean Energy) for cash proceeds of $13 million and recorded a $3 million gain related to the sale. We
also sold our $100 million investment in Clean Energy convertible notes for cash proceeds of $85 million and recorded
a $15 million loss related to the sale. In addition, in 2013 we sold a $1 million equity investment for cash proceeds of
$6 million and recorded a $5 million gain. In 2012, we sold all of our common and subordinated units representing
limited partner interests in Access Midstream Partners, L.P. (ACMP) and all of our limited liability company interests
in the sole member of its general partner for cash proceeds of $2.0 billion. We recorded a $1.032 billion pre-tax gain
associated with the transaction. Also in 2012, we sold our investment in Glass Mountain Pipeline, LLC for cash proceeds
of $99 million and recorded a $62 million gain.
Losses on Purchases of Debt and Extinguishment of Other Financing. We recorded losses on purchases of debt
of $197 million in 2014, $193 million in 2013 and $200 million in 2012. In December 2014, we entered into a new five-
year $4.0 billion senior unsecured revolving credit facility to use for general corporate purposes. The new credit facility
replaced our then-existing $4.0 billion senior secured revolving credit facility that was scheduled to mature in December
2015. We recognized a loss of approximately $2 million in extinguishment costs related to lenders under the terminated
facility that are not lenders under the new facility. In 2014, we repaid the borrowings under and terminated our $2.0
billion term loan credit facility due 2017 and recorded a loss of approximately $90 million, including $40 million in
premiums, $30 million of unamortized discount and $20 million of unamortized deferred charges. Also in 2014, we
purchased and redeemed $1.265 billion in aggregate principal amount of our 9.5% Senior Notes due 2015. We recorded
a loss of approximately $99 million associated with the purchase and redemption, including $87 million in premiums,
$9 million of unamortized debt discount and $3 million of unamortized deferred charges. In addition, in 2014, we
redeemed $97 million in principal amount of our 6.875% Senior Notes due 2018 at par. We recorded a loss of
approximately $6 million associated with the redemption, including $5 million in premiums and $1 million of unamortized
deferred charges.
In 2013, we terminated the financing master lease agreement on our real estate surface properties in the Fort
Worth, Texas area for $258 million and recorded a loss of approximately $123 million associated with the extinguishment.
Also, in 2013, we completed tender offers to purchase $217 million in aggregate principal amount of our 7.625% Senior
Notes due 2013 for $221 million and $377 million in aggregate principal amount of our 6.875% Senior Notes due 2018
for $405 million. We recorded a loss of approximately $37 million associated with the tender offers, including $32 million
in premiums and $5 million of unamortized deferred charges. In addition, we redeemed $1.3 billion in aggregate principal
amount of our 6.775% Senior Notes due 2019 at par pursuant to a notice of special early redemption. We recorded a
loss of approximately $33 million associated with the redemption, including $19 million of unamortized deferred charges
and $14 million of discount.
In 2012, we used proceeds from asset sales and our November 2012 term loan to fully repay our May 2012 term
loans. We recorded $200 million of losses associated with the repayment, including $86 million of deferred charges
and $114 million of debt discount.
Other Income. In 2014, other income was $22 million, compared to $26 million in 2013 and $8 million in 2012.
The 2014 other income consisted primarily of $3 million of interest income and $19 million of miscellaneous income.
The 2013 other income consisted of $5 million of interest income and $21 million of miscellaneous income. The 2012
income consisted of $1 million of interest income and $7 million of miscellaneous income.