Chesapeake Energy Files Q2 2024 10-Q

TL;DR

Chesapeake Energy's Q2 10-Q is in. Check financials for oil & gas ops.

AI Summary

Chesapeake Energy Corp. filed its 10-Q for the period ending June 30, 2024. The filing covers the second quarter of 2024 and provides financial and operational details for the company. Specific financial figures and operational metrics for the period are detailed within the report.

Why It Matters

This filing provides investors with the latest financial performance and operational status of Chesapeake Energy, a key player in the oil and gas industry.

Risk Assessment

Risk Level: medium — The oil and gas industry is subject to significant price volatility and regulatory changes, which can impact financial performance.

Key Numbers

• 2024 Q2 — Reporting Period (Financials for the second quarter of 2024 are detailed.)
• 2024-01-01 to 2024-06-30 — Reporting Dates (Covers the first six months of 2024.)
• 2023-01-01 to 2023-06-30 — Prior Period Dates (Provides comparative data for the first six months of 2023.)

Key Players & Entities

• CHESAPEAKE ENERGY CORP (company) — Filer
• 0000895126-24-000108 (filing_id) — Accession Number
• 20240630 (date) — Period of Report
• 20240729 (date) — Filing Date
• OKLAHOMA CITY (location) — Business Address City

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share CHK The Nasdaq Stoc
• $27.63 — an initial exercise price per share of $27.63. The Class A Warrants are exercisable f
• $32.13 — an initial exercise price per share of $32.13. The Class B Warrants are exercisable f
• $36.18 — an initial exercise price per share of $36.18. The Class C Warrants are exercisable f

Filing Documents

• chk-20240630.htm (10-Q) — 1335KB
• chk-ex_101x20240630x10q.htm (EX-10.1) — 176KB
• chk-ex_311x20240630x10q.htm (EX-31.1) — 9KB
• chk-ex_312x20240630x10q.htm (EX-31.2) — 10KB
• chk-ex_321x20240630x10q.htm (EX-32.1) — 5KB
• chk-ex_322x20240630x10q.htm (EX-32.2) — 6KB
• chk-20240630_g1.jpg (GRAPHIC) — 92KB
• 0000895126-24-000108.txt ( ) — 7315KB
• chk-20240630.xsd (EX-101.SCH) — 43KB
• chk-20240630_cal.xml (EX-101.CAL) — 75KB
• chk-20240630_def.xml (EX-101.DEF) — 296KB
• chk-20240630_lab.xml (EX-101.LAB) — 603KB
• chk-20240630_pre.xml (EX-101.PRE) — 442KB
• chk-20240630_htm.xml (XML) — 935KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (Unaudited) Condensed Consolidated Balance Sheets 5 Condensed Consolidated Statements of Operations 6 Condensed Consolidated Statements of Cash Flows 7 Condensed Consolidated Statements of Stockholders' Equity 9 Notes to Condensed Consolidated Financial Statements (Unaudited) Note 1. Basis of Presentation and Summary of Significant Accounting Policies 10 Note 2. Natural Gas and Oil Property Transactions 11 Note 3. Earnings Per Share 12 Note 4. Debt 13 Note 5. Contingencies and Commitments 14 Note 6. Other Current Liabilities 15 Note 7. Revenue 15 Note 8. Income Taxes 17 Note 9. Equity 18 Note 10. Share-Based Compensation 19 Note 11. Derivative and Hedging Activities 21 Note 12. Investments 23 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Liquidity and Capital Resources 26 Results of Operations 30 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 38 Item 4.

Controls and Procedures

Controls and Procedures 39

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 40 Item 1A.

Risk Factors

Risk Factors 40 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 41 Item 3. Defaults Upon Senior Securities 41 Item 4. Mine Safety Disclosures 41 Item 5. Other Information 41 Item 6. Exhibits 41

Signatures

Signatures 43 Definitions Unless the context otherwise indicates, references to "us," "we," "our," "ours," "Chesapeake," the "Company" and "Registrant" refer to Chesapeake Energy Corporation and its consolidated subsidiaries. All monetary values, other than per unit and per share amounts, are stated in millions of U.S. dollars unless otherwise specified. In addition, the following are other abbreviations and definitions of certain terms used within this Quarterly Report on Form 10-Q: "ASU" means Accounting Standards Update. "Bankruptcy Code" means Title 11 of the United States Code, 11 U.S.C. 101–1532, as amended. "Bankruptcy Court" means the United States Bankruptcy Court for the Southern District of Texas. "Bbl" or "Bbls" means barrel or barrels. "Bcf" means billion cubic feet. "Chapter 11 Cases" means, when used with reference to a particular Debtor, the case pending for that Debtor under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court, and when used with reference to all the Debtors, the procedurally consolidated Chapter 11 cases pending for the Debtors in the Bankruptcy Court. "Class A Warrants" means warrants to purchase 10 percent of the common stock (after giving effect to the Rights Offering, but subject to dilution by the Management Incentive Plan, the Class B Warrants, and the Class C Warrants), at an initial exercise price per share of $27.63. The Class A Warrants are exercisable from the Effective Date until February 9, 2026. "Class B Warrants" means warrants to purchase 10 percent of the common stock (after giving effect to the Rights Offering, but subject to dilution by the Management Incentive Plan and the Class C Warrants), at an initial exercise price per share of $32.13. The Class B Warrants are exercisable from the Effective Date until February 9, 2026. "Class C Warrants" means warrants to purchase 10 percent of the common stock (after giving effect to the Rights Offering, but subject to dilution by the Management Incentiv

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Condensed Consolidated Financial Statements

ITEM 1. Condensed Consolidated Financial Statements CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) ($ in millions, except per share data) June 30, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 1,019 $ 1,079 Restricted cash 76 74 Accounts receivable, net 350 593 Derivative assets 361 637 Other current assets 207 226 Total current assets 2,013 2,609 Property and equipment: Natural gas and oil properties, successful efforts method Proved natural gas and oil properties 12,105 11,468 Unproved properties 1,800 1,806 Other property and equipment 512 497 Total property and equipment 14,417 13,771 Less: accumulated depreciation, depletion and amortization ( 4,413 ) ( 3,674 ) Total property and equipment, net 10,004 10,097 Long-term derivative assets 19 74 Deferred income tax assets 995 933 Other long-term assets 577 663 Total assets $ 13,608 $ 14,376 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 274 $ 425 Accrued interest 39 39 Derivative liabilities 7 3 Other current liabilities 611 847 Total current liabilities 931 1,314 Long-term debt, net 2,021 2,028 Long-term derivative liabilities 3 9 Asset retirement obligations, net of current portion 264 265 Other long-term liabilities 19 31 Total liabilities 3,238 3,647 Contingencies and commitments ( Note 5 ) Stockholders' equity: Common stock, $ 0.01 par value, 450,000,000 shares authorized: 131,252,107 and 130,789,936 shares issued 1 1 Additional paid-in capital 5,768 5,754 Retained earnings 4,601 4,974 Total stockholders' equity 10,370 10,729 Total liabilities and stockholders' equity $ 13,608 $ 14,376 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 Table of Contents CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended June 30, Six Months E

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View this 10-Q filing on SEC EDGAR