Chesapeake Energy Corporation – Company Information

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The Chesapeake Energy Corporation is an American oil and natural gas company based in Oklahoma City.

The company is publicly listed on the New York Stock Exchange (NYSE) under the stock ticker symbol ‘CHK’.

Chesapeake focuses on the exploration and development of onshore oil and natural gas fields in the U.S. The company claims to be one of the most active drillers of onshore wells in the country.

With an interest in around 45,900 producing natural gas and oil wells Chesapeake Energy produces approximately 4.1 bcfe per day (a third of which is natural gas).

According to Chesapeake, it has a leading position in the Cleveland, Tonkawa, Eagle Ford, Mississippi Lime, Granite Wash, Niobrara, and Utica unconventional liquids plays. In addition to the Barnett, Marcellus, and Haynesville/Bossier unconventional natural gas shale plays.

The company was founded by Aubrey McClendon in 1989. McClendon’s fondness of the Chesapeake Bay region influenced the name of the company. His strategy was to drill horizontal natural gas wells in unconventional reservoirs.

Chesapeake went public in 1993 on the NASDAQ stock exchange (at $1.33 per share). Two years later the company moved from NASDAQ to the NYSE.

It also operates marketing and oilfield services businesses through its subsidiaries Chesapeake Energy Marketing, Inc. and Chesapeake Oilfield Services, L.L.C.

Overview

chesapeake energy logo


Net Revenues (in $ millions) 2013 2012
Natural gas, oil and NGL $7,052 $6,278
Marketing, gathering and compression $9,559 $5,431
Oilfield services $895 $607
Total Revenues $17,506 $12,316
Operating Expenses (in $ millions)
Natural gas, oil and NGL production $1,159 $1,304
Production taxes $229 $188
Marketing, gathering and compression $9,461 $5,312
Oilfield services $736 $465
General and administrative $457 $535
Restructuring and other termination costs $248 $7
Natural gas, oil and NGL depreciation, depletion and amortization $2,589 $2,507
Depreciation and amortization of other assets $314 $304
Impairment of natural gas and oil properties $3,315
Impairments of fixed assets and other $546 $340
Net gains on sales of fixed assets $(302) $(267)
Total Operating Expenses $15,437 $14,010
Income Data (in $ millions)
Operating Income/(Loss) $2,069 $(1,694)
Other Income (Expense) $(627) $720
Income/(Loss) Before Income Taxes $1,442 $(974)
Income Tax (Benefit) Expense $548 $(380)
Net (Loss) Income $894 $(594)
Net Income attributable to noncontrolling interests $170 $175
Net (Loss) Income attributable to Chesapeake Energy $724 $(769)
Balance Sheet Data (in $ millions)
Total assets $41,782 $41,611
Total Long-Term Liabilities $18,127 $17,449
Total Chesapeake Stockholders’ Equity $15,995 $15,569
Common share data (in $)
Basic earnings (loss) per common share $0.73 $(1.46)
Diluted earnings (loss) per common share $0.73 $(1.46)

Source: “Chesapeake Energy Corporation 2013 Annual Report”


Chesapeake Oilfield Services L.L.C.

Chesapeake Energy has stated that it is pursuing strategic alternatives for its oilfield services business, which could include a potential spin-off to Chesapeake shareholders or an outright sale.

Chesapeake Oilfield Services L.L.C. is comprised of four main operating segments:

Drilling: provides land drilling and drilling-related services, such as directional drilling, geosteering and mudlogging, for oil and natural gas E&P activities.

Hydraulic Fracturing: provides high-pressure hydraulic fracturing (or frac) services and other well stimulation services.

Oilfield Rentals: provides rental tools and services for land-based oil and natural gas activities.

Oilfield Trucking: provides drilling rig relocation, logistics, and fluid handling services.

Net Revenues (in $ thousands) 2013 2012
Revenues from Chesapeake $1,960,256 $1,811,253
Revenues from third parties $227,949 $108,769
Total Revenues $2,188,205 $1,920,022
Operating Expenses (in $ thousands)
Operating costs $1,717,709 $1,390,786
Depreciation and amortization $289,591 $231,322
General and administrative, including expenses from affiliates $80,354 $66,360
(Gains) losses on sales of property and equipment $(2,629) $2,025
Impairments and other $74,762 $60,710
Total Operating Expenses $2,159,787 $1,751,203
Income Data (in $ thousands)
Operating Income $28,418 $168,819
Other Income (Expense) $(55,986) $(52,366)
(Loss) Income Before Income Taxes $(27,568) $116,453
Income Tax (Benefit) Expense $(7,833) $46,877
Net (Loss) Income $(19,735) $69,576
Balance Sheet Data (in $ thousands)
Total assets $2,026,893 $2,119,511
Total Long-Term Liabilities $1,204,712 $1,233,950
Owner’s Equity $547,192 $596,817

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