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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2010
($ in millions)
Parent
Guarantor
Subsidiaries Non-Guarantor
Subsidiaries Eliminations Consolidated
REVENUES:
Natural gas and oil sales ........ $
Marketing, gathering and
— $ 5,647 $ — $ — $ 5,647
compression sales ........... — 3,368 248 (137) 3,479
Service operations revenue ..... — 240 — — 240
Total Revenues ............. — 9,255 248 (137) 9,366
OPERATING COSTS:
Production expenses ........... — 893 — — 893
Production taxes .............. — 157 — — 157
General and administrative
expenses .................. 2 421 30 — 453
Marketing, gathering and
compression expenses ....... — 3,293 125 (66) 3,352
Service operations expense ..... — 208 — — 208
Natural gas and oil depreciation,
depletion and amortization .... — 1,394 — — 1,394
Depreciation and amortization of
other assets ................ — 170 50 — 220
(Gains) losses on sales of other
property and equipment ...... — 2 (139) — (137)
Other impairments ............. — 1 20 — 21
Total Operating Costs .......... 2 6,539 86 (66) 6,561
INCOME (LOSS) FROM
OPERATIONS ................ (2) 2,716 162 (71) 2,805
OTHER INCOME (EXPENSE):
Interest expense .............. (637) (99) (1) 718 (19)
Earnings (losses) from equity
investees .................. — 34 193 — 227
Losses on redemptions or
exchanges of debt ........... (129) — — — (129)
Impairment of investments ...... — (16) — — (16)
Other income (expense) ........ 718 11 5 (718) 16
Equity in net earnings of
subsidiary .................. 1,805 177 — (1,982) —
Total Other Income
(Expense) ................ 1,757 107 197 (1,982) 79
INCOME (LOSS) BEFORE
INCOME TAXES .............. 1,755 2,823 359 (2,053) 2,884
INCOME TAX EXPENSE
(BENEFIT) ................... (19) 1,018 138 (27) 1,110
NET INCOME (LOSS) ........... $ 1,774 $ 1,805 $ 221 $ (2,026) $ 1,774
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