Page 134

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, 2016 and 2015, is presented below.

Accounting Method

Approximate Ownership % December 31, December 31, 2016 2015

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

Carrying Value December 31, December 31, 2016 2015 ($ in millions) $ — $ 119 — — 7 17 $ 7 $ 136

____________________________________________ (a)

Balance is included in other long-term assets on our consolidated balance sheets.

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. Based on our review of the investment in Sundrop, we recognized an other-than-temporary impairment of $119 million in 2016. 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. 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 2015. 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. 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.


Profile for Chesapeake Energy

2016 Annual Report  

2016 Annual Report