Chesapeake Energy 2015 Annual Report Download - page 137

CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
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14. Investments
A summary of our investments, including our approximate ownership percentage and carrying value as of
December 31, 2015 and 2014, is presented below.
Approximate Ownership % Carrying Value
Accounting
Method December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014
($ in millions)
Sundrop Fuels, Inc. ....... Equity 56% 56% $ 119 $ 130
FTS International, Inc. ... Equity 30% 30% — 116
Other ............................. — —% —% 17 19
Total investments ...................................................................................... $ 136 $ 265
Sundrop Fuels, Inc. Sundrop Fuels, Inc. (Sundrop), based in Longmont, Colorado, is a privately held cellulosic
biofuels company that is constructing a nonfood biomass-based “green gasoline” plant. In 2015, we recorded a $20
million charge related to our share of Sundrop's net loss and $9 million of capitalized interest associated with the
construction of Sundrop’s plant. The carrying value of our investment in Sundrop was in excess of our underlying equity
in net assets by approximately $87 million as of December 31, 2015 and will be amortized over the life of the plant
once it is placed into service.
FTS International, Inc. FTS International, Inc. (FTS), based in Fort Worth, Texas, is a privately held company
that, through its subsidiaries, provides hydraulic fracturing and other services to oil and gas companies. In 2015, we
recorded our equity in FTS’ net losses and other adjustments, prior to intercompany profit eliminations, of $107 million
and an accretion adjustment of $44 million related to the excess of our underlying equity in net assets of FTS over our
carrying value. Due to the decrease in the oil and natural gas pricing environment, we recognized an other-than-
temporary impairment on our investment in FTS of $53 million during the 2015 fourth quarter.
Sold Investments
Chaparral Energy, Inc. Chaparral Energy, Inc. (Chaparral), based in Oklahoma City, Oklahoma, is a private
independent oil and natural gas company engaged in the production, acquisition and exploitation of oil and natural gas
properties. In 2014, we sold all of our interest in Chaparral for net cash proceeds of $209 million. We recorded a $73
million gain related to the sale.
Clean Energy Fuels Corp. In 2013, we sold all of our shares of Clean Energy Fuels Corp. (Clean Energy) common
stock for cash proceeds of approximately $13 million. We recorded a $3 million gain related to the sale. In 2013, we
sold our $100 million investment in convertible notes of Clean Energy for cash proceeds of $85 million. The buyer also
assumed our commitment to purchase the third and final $50 million tranche of Clean Energy convertible notes. We
recorded a $15 million loss related to this sale.
Gastar Exploration Ltd. In 2013, we sold our investment in Gastar Exploration Ltd. for cash proceeds of $10
million.
Other. In 2014, 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 an equity investment for cash proceeds of $6 million and recorded a $5 million gain associated
with the transaction.