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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 7.

Related Party Transactions

Our equity method investees are considered related parties. Hydraulic fracturing and other services are provided to us in the ordinary course of business by our equity affiliate FTS International, Inc. (FTS). As well operators, we are reimbursed by other working interest owners through the joint interest billing process for their proportionate share of these costs. For the years ended December 31, 2016, 2015 and 2014, our expenditures for hydraulic fracturing services with FTS were $3 million, $65 million and $220 million, respectively. 8.

Equity Common Stock

A summary of the changes in our common shares issued for the years ended December 31, 2016, 2015 and 2014 is detailed below.

Shares issued as of January 1 ...................................................................... Exchange of convertible notes .................................................................. Exchange of senior notes .......................................................................... Conversion of preferred stock ................................................................... Restricted stock issuances (net of forfeitures and cancellations)(a) ........... Stock option exercises .............................................................................. Shares issued as of December 31 .................................................................

Years Ended December 31, 2016 2015 2014 (in thousands) 664,796 664,944 666,192 55,428 — — 53,924 — — 120,186 — — 1,945 (163) (2,529) — 15 1,281 896,279 664,796 664,944

____________________________________________ (a)

The amount for 2014 reflects forfeitures upon the June 2014 spin-off of our oilfield services business.

During the year ended December 31, 2016, our shareholders approved an amendment to our certificate of incorporation to increase our authorized common stock from 1,000,000,000 shares to 1,500,000,000 shares, par value $0.01 per share.

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Profile for Chesapeake Energy

2016 Annual Report  

2016 Annual Report