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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 20. Asset Retirement Obligations The components of the change in our asset retirement obligations are shown below.

Asset retirement obligations, beginning of period .................................................... Additions ............................................................................................................. Revisions(a) .......................................................................................................... Settlements and disposals(b) ................................................................................ Accretion expense ............................................................................................... Asset retirement obligations, end of period .............................................................. Less current portion (c) ......................................................................................... Asset retirement obligation, long-term .....................................................................

Years Ended December 31, 2016 2015 ($ in millions) $ 473 $ 465 4 6 (58) 13 (182) (34) 24 23 261 473 14 21 $ 247 $ 452

_________________________________________ (a)

Revisions in estimated liabilities during the period relate primarily to changes in estimates of asset retirement costs and the expected timing of settlement.

(b)

Settlements and disposals in 2016 relate primarily to wells divested in the Barnett and Devonian Shale areas.

(c)

Balance is included in other current liabilities on our consolidated balance sheets.

21. Major Customers and Segment Information Sales to BP PLC constituted approximately 10% and 14% of our total revenues (before the effects of hedging) for the years ended December 31, 2016 and 2015, respectively. Sales to Exxon Mobil Corporation constituted approximately 12% of our total revenues (before the effects of hedging) for the year ended December 31, 2014. As of December 31, 2016, we have two reportable operating segments, each of which is managed separately because of the nature of its operations. The exploration and production operating segment is responsible for finding and producing oil, natural gas and NGL. The marketing, gathering and compression operating segment is responsible for marketing, gathering and compression of oil, natural gas and NGL. In addition, prior to the spin-off of our oilfield services business in June 2014, our former oilfield services operating segment was responsible for drilling, oilfield trucking, oilfield rentals, hydraulic fracturing and other oilfield services for both Chesapeake-operated wells and wells operated by third parties. Our former oilfield services segment’s historical financial results for periods prior to the spinoff continue to be included in our historical financial results as a component of continuing operations, as reflected in the table below. Management evaluates the performance of our segments based upon income (loss) before income taxes. Revenues from the sale of oil, natural gas and NGL related to Chesapeake’s ownership interests by our marketing, gathering and compression operating segment are reflected as revenues within our exploration and production operating segment. These amounts totaled $3.750 billion, $4.372 billion and $8.565 billion for the years ended December 31, 2016, 2015 and 2014, respectively. Revenues generated by our former oilfield services operating segment for work performed for Chesapeake’s exploration and production operating segment were reclassified to the full cost pool based on Chesapeake’s ownership interest. Revenues reclassified totaled $544 million for year ended December 31, 2014. No income was recognized in our consolidated statements of operations related to oilfield services performed for Chesapeake-operated wells. During the 2016 first quarter, we changed the structure of our internal organization to include certain assets in our Exploration and Production reportable segment instead of our Other segment. Accordingly, this change has been reflected through retroactive revision of the segment information as of December 31, 2015 and 2014, as shown in the tables below.

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Profile for Chesapeake Energy

2016 Annual Report  

2016 Annual Report