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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, 2009
($ in millions)
Guarantor
Parent Subsidiaries Non-Guarantor
Subsidiaries Eliminations Consolidated
REVENUES:
Natural gas and oil sales ..... $
Marketing, gathering and
— $ 5,049 $ — $ — $ 5,049
compression sales ........ — 2,181 510 (228) 2,463
Service operations revenue . . — 190 — — 190
Total Revenues .......... — 7,420 510 (228) 7,702
OPERATING COSTS:
Production expenses ........ — 877 (1) — 876
Production taxes ........... — 107 — — 107
General and administrative
expenses ................ — 318 31 — 349
Marketing, gathering and
compression expenses .... — 2,125 201 (10) 2,316
Service operations expense . . — 182 — — 182
Natural gas and oil
depreciation, depletion and
amortization ............. — 1,371 — — 1,371
Depreciation and amortization
of other assets ........... — 149 95 — 244
Impairment of natural gas and
oil properties ............. — 11,000 — — 11,000
(Gains) losses on sales of
other property and
equipment ............... — — 38 — 38
Other impairments .......... — 40 90 — 130
Restructuring costs ......... — 34 — — 34
Total Operating Costs ..... — 16,203 454 (10) 16,647
INCOME (LOSS) FROM
OPERATIONS ............. — (8,783) 56 (218) (8,945)
OTHER INCOME (EXPENSE):
Interest expense ............ (652) (145) (1) 685 (113)
Earnings (losses) from equity
investees ................ — (39) — — (39)
Losses on redemptions or
exchanges of debt ........ (40) — — — (40)
Impairment of investments . . . — (162) — — (162)
Other income (expense) ..... 685 53 (42) (685) 11
Equity in net earnings of
subsidiary ............... (5,826) (153) — 5,979 —
Total Other Income
(Expense) ............. (5,833) (446) (43) 5,979 (343)
INCOME (LOSS) BEFORE
INCOME TAXES ........... (5,833) (9,229) 13 5,761 (9,288)
INCOME TAX EXPENSE
(BENEFIT) ................ (3) (3,403) 5 (82) (3,483)
NET INCOME (LOSS) ........ (5,830) (5,826) 8 5,843 (5,805)
Net (income) loss attributable
to noncontrolling interest . . .
NET INCOME (LOSS)
ATTRIBUTABLE TO
— — (25) — (25)
CHESAPEAKE ............ $ (5,830) $ (5,826) $ (17) $ 5,843 $ (5,830)
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