Page 44

ITEM 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Financial Data The following table sets forth certain information regarding our production volumes, oil, natural gas and NGL sales, average sales prices received, and other operating income and expenses for the periods indicated: Years Ended December 31, 2016 2015 2014 Net Production: Oil (mmbbl) ........................................................................................ Natural gas (bcf) ................................................................................ NGL (mmbbl) ..................................................................................... Oil equivalent (mmboe)(a) ................................................................... Oil, Natural Gas and NGL Sales ($ in millions): Oil sales ............................................................................................. Oil derivatives – realized gains (losses)(b) .......................................... Oil derivatives – unrealized gains (losses)(b) ...................................... Total oil sales ............................................................................... Natural gas sales ............................................................................... Natural gas derivatives – realized gains (losses)(b) ............................ Natural gas derivatives – unrealized gains (losses)(b) ........................ Total natural gas sales................................................................. NGL sales .......................................................................................... NGL derivatives – realized gains (losses)(b) ....................................... NGL derivatives – unrealized gains (losses)(b) ................................... Total NGL sales ........................................................................... Total oil, natural gas and NGL sales......................................

33 1,049 24 233

$

$

1,351 97 (318) 1,130 2,155 151 (500) 1,806 360 (8) — 352 3,288

Average Sales Price (excluding gains (losses) on derivatives): Oil ($ per bbl) ..................................................................................... Natural gas ($ per mcf) ...................................................................... NGL ($ per bbl) .................................................................................. Oil equivalent ($ per boe) ...................................................................

$ $ $ $

Average Sales Price (including realized gains (losses) on derivatives): Oil ($ per bbl) ..................................................................................... Natural gas ($ per mcf) ...................................................................... NGL ($ per bbl) .................................................................................. Oil equivalent ($ per boe) ...................................................................

$ $ $ $

Other Operating Income ($ in millions): Marketing, gathering and compression net margin(c)(d) ...................... Oilfield services net margin ................................................................

$ $

40

$

42 1,070 28 248

42 1,095 33 258

$

$

1,904 880 (536) 2,248 2,470 437 (157) 2,750 393 — — 393 5,391

$

3,778 (185) 859 4,452 4,535 (191) 535 4,879 1,023 — — 1,023 10,354

40.65 2.05 14.76 16.63

$ $ $ $

45.77 2.31 14.06 19.23

$ $ $ $

89.41 4.14 30.95 36.21

43.58 2.20 14.43 17.66

$ $ $ $

66.91 2.72 14.06 24.54

$ $ $ $

85.04 3.97 30.95 34.74

$ $

243 —

$ $

(194) —

(11) 115

Profile for Chesapeake Energy

2016 Annual Report  

2016 Annual Report