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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Gathering, Processing and Transportation Agreements We have contractual commitments with midstream service companies and pipeline carriers for future gathering, processing and transportation of oil, natural gas and NGL to move certain of our production to market. Working interest owners and royalty interest owners, where appropriate, will be responsible for their proportionate share of these costs. Commitments related to gathering, processing and transportation agreements are not recorded as obligations in the accompanying consolidated balance sheets; however, they are reflected in our estimates of proved reserves. The aggregate undiscounted commitments under our gathering, processing and transportation agreements, excluding any proportionate share of these costs from working interest and royalty interest owners, credits for thirdparty volumes or future costs under cost-of-service agreements, are presented below.

2017 ............................................................................................................................................. 2018 ............................................................................................................................................. 2019 ............................................................................................................................................. 2020 ............................................................................................................................................. 2021 ............................................................................................................................................. 2022 – 2099 ................................................................................................................................. Total .....................................................................................................................................

December 31, 2016 ($ in millions) $ 1,434 1,229 1,178 1,074 970 5,225 $ 11,110

In addition to the above commitments, we have entered into long-term agreements for certain natural gas gathering and related services within specified acreage dedication areas in exchange for cost-of-service based fees redetermined annually, or tiered fees based on volumes delivered relative to scheduled volumes. Future gathering fees vary with the applicable agreement. Drilling Contracts We have contracts with various drilling contractors to utilize drilling services at market-based pricing. These commitments are not recorded as obligations in the accompanying consolidated balance sheets. As of December 31, 2016, the aggregate undiscounted minimum future payments under these drilling service commitments are detailed below.

2017 ............................................................................................................................................. 2018 ............................................................................................................................................. Total .....................................................................................................................................

December 31, 2016 ($ in millions) $ 91 14 $ 105

Pressure Pumping Contracts We have an agreement for pressure pumping services, which expires in June 2017. The services agreement requires us to utilize, at market-based pricing, the lesser of (i) three pressure pumping crews through June 30, 2017, or (ii) 50% of the total number of all pressure pumping crews working for us in all of our operating regions during the respective year. We are also required to utilize the pressure pumping services for a minimum number of fracture stages as set forth in the agreement. We are entitled to terminate the agreement in certain situations, including if the contractor fails to provide the overall quality of service provided by similar service providers. These commitments are not recorded as obligations in the accompanying consolidated balance sheets. As of December 31, 2016, the aggregate undiscounted minimum future payments under this agreement were approximately $53 million.

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Profile for Chesapeake Energy

2016 Annual Report  

2016 Annual Report