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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 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.

Accounting Method

Approximate Ownership % December 31, December 31, 2015 2014

Sundrop Fuels, Inc. ....... Equity 56% 56% FTS International, Inc. ... Equity 30% 30% Other ............................. — —% —% Total investments ......................................................................................

Carrying Value December 31, December 31, 2015 2014 ($ in millions) $ 119 $ 130 — 116 17 19 $ 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-thantemporary 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.

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Profile for Chesapeake Energy

2015 Annual Report  

2015 Annual Report