Page 160

CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES SUPPLEMENTARY INFORMATION – (Continued)

Supplemental Disclosures About Oil, Natural Gas and NGL Producing Activities (unaudited) Net Capitalized Costs Capitalized costs related to Chesapeake's oil, natural gas and NGL producing activities are summarized as follows: December 31, 2015 2014 ($ in millions) Oil and oil and natural gas properties: Proved ........................................................................................................................ Unproved .................................................................................................................... Total ...................................................................................................................... Less accumulated depreciation, depletion and amortization ........................................ Net capitalized costs ............................................................................................

$

63,843 6,798 70,641 (58,552) $ 12,089

$

58,594 9,788 68,382 (38,238) $ 30,144

Unproved properties not subject to amortization as of December 31, 2015, 2014 and 2013 consisted mainly of leasehold acquired through direct purchases of significant oil and natural gas property interests. We capitalized approximately $410 million, $604 million and $815 million of interest during 2015, 2014 and 2013, respectively, on significant investments in unproved properties that were not yet included in the amortization base of the full cost pool. We will continue to evaluate our unproved properties, and although the timing of the ultimate evaluation or disposition of the properties cannot be determined, we can expect the majority of our unproved properties not held by production to be transferred into the amortization base over the next five years. Costs Incurred in Oil and Natural Gas Property Acquisition, Exploration and Development Costs incurred in oil and natural gas property acquisition, exploration and development activities which have been capitalized are summarized as follows: Years Ended December 31, 2015 2014 2013 ($ in millions) Acquisition of Properties: Proved properties ................................................................................ Unproved properties ............................................................................ Exploratory costs ..................................................................................... Development costs .................................................................................. Costs incurred(a)(b) .........................................................................

$

$

— 454 112 2,941 3,507

$

$

214 1,224 421 4,204 6,063

$

$

22 997 699 4,888 6,606

___________________________________________ (a)

Exploratory and development costs are net of $51 million, $679 million and $884 million in drilling and completion carries received from our joint venture partners during 2015, 2014 and 2013, respectively.

(b)

Includes capitalized interest and asset retirement obligations as follows: Capitalized interest ........................................................................... Asset retirement obligations .............................................................

$ $

410 (15)

$ $

604 39

$ $

815 7

In 2015, we invested approximately $720 million, net of drilling and completion cost carries of $18 million, to convert 67 mmboe of PUDs to proved developed reserves.

155

Profile for Chesapeake Energy

2015 Annual Report  

2015 Annual Report