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
- President, CEO and Director: Robert D. “Doug” Lawler
- CFO: Domenic J. Dell’Osso, Jr.
- Chairman: Archie W. Dunham
- Type: Public
- Industry: Oil/Natural Gas
- Listed on the New York Stock Exchange (NYSE)
- NYSE stock ticker symbol: CHK
- S&P 500 Component
- Revenue: $17.506 billion USD (2013)
- Net income: $894 million USD (2013)
- Diluted earnings per share: $0.73 USD (2013)
- Employees: 5,300 (2013)
- Company head office: 6100 North Western Avenue, Oklahoma City, Oklahoma
- Investor relations contact number: 405-935-8870
- Investor relations email: [email protected]
- Website: http://www.chk.com/
| 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 |