CHESAPEAKE ENERGY CORP [CHK] Filings

10-Q 1 chk-20220930.htm 10-Q chk-20220930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 1-13726

CHESAPEAKE ENERGY CORPORATION

(Exact name of registrant as specified in its charter)

Oklahoma

73-1395733

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

6100 North Western Avenue,

Oklahoma City,

Oklahoma

73118

(Address of principal executive offices)

(Zip Code)

(405)

848-8000

(Registrant’s telephone number, including area code)

Securities Registered Pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of Each Exchange on Which Registered

Common Stock, $0.01 par value per share

CHK

The Nasdaq Stock Market LLC

Class A Warrants to purchase Common Stock

CHKEW

The Nasdaq Stock Market LLC

Class B Warrants to purchase Common Stock

CHKEZ

The Nasdaq Stock Market LLC

Class C Warrants to purchase Common Stock

CHKEL

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☒ Accelerated Filer ☐ Non-accelerated Filer ☐

Smaller Reporting Company ☐ Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court Yes ☒ No ☐

As of October 28, 2022, there were 133,971,136 shares of our $0.01 par value common stock outstanding.

CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES

INDEX TO FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2022


	PART I. FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets	6
	Condensed Consolidated Statements of Operations	8
	Condensed Consolidated Statements of Comprehensive Income (Loss)	10
	Condensed Consolidated Statements of Cash Flows	11
	Condensed Consolidated Statements of Stockholders’ Equity	13
	Notes to Condensed Consolidated Financial Statements (Unaudited)
	Note 1. Basis of Presentation and Summary of Significant Accounting Policies	15
	Note 2. Chapter 11 Emergence	16
	Note 3. Fresh Start Accounting	18
	Note 4. Natural Gas and Oil Property Transactions	26
	Note 5. Earnings Per Share	30
	Note 6. Debt	31
	Note 7. Contingencies and Commitments	33
	Note 8. Other Current Liabilities	34
	Note 9. Revenue	34
	Note 10. Income Taxes	36
	Note 11. Equity	38
	Note 12. Share-Based Compensation	39
	Note 13. Derivative and Hedging Activities	42
	Note 14. Other Operating Expense (Income), Net	44

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	45
	Liquidity and Capital Resources	47
	Results of Operations	52
	Non-GAAP Measures	63
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	66
Item 4.	Controls and Procedures	67
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	68
Item 1A.	Risk Factors	69
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	69
Item 3.	Defaults Upon Senior Securities	69
Item 4.	Mine Safety Disclosures	69
Item 5.	Other Information	69
Item 6.	Exhibits	70
Signatures		72


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:

“ASC” means Accounting Standards Codification.

“Backstop Commitment Agreement” means that certain Backstop Commitment Agreement, dated as of June 28, 2020, by and between Chesapeake and the Backstop Parties, as may be further amended, modified, or supplemented from time to time, in accordance with its terms.

“Backstop Parties” means the members of the FLLO Ad Hoc Group that are signatories to the Backstop Commitment Agreement and Franklin Advisers, Inc., as investment manager on behalf of certain funds and accounts.

“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.

“Chief” means Chief E&D Holdings, LP.

“Class A Warrants” means warrants to purchase 10 percent of the New 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 New 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 New Common Stock (after giving effect to the Rights Offering, but subject to dilution by the Management Incentive Plan), at an initial exercise price per share of $36.18. The Class C Warrants are exercisable from the Effective Date until February 9, 2026.

“Confirmation Order” means the order confirming the Fifth Amended Joint Chapter 11 Plan of Reorganization of Chesapeake Energy Corporation and its Debtor Affiliates, Docket No. 2915, entered by the Bankruptcy Court on January 16, 2021.

“DD&A” means depreciation, depletion and amortization.

“Debtors” means the Company, together with all of its direct and indirect subsidiaries that have filed the Chapter 11 Cases.

“DIP Facility” means that certain debtor-in-possession financing facility documented pursuant to the DIP Documents and DIP Order.

“Effective Date” means February 9, 2021.

“Exit Credit Facility” means the reserve-based revolving credit facility available upon emergence from bankruptcy.

“FLLO Term Loan Facility” means the facility outstanding under the FLLO Term Loan Facility Credit Agreement.

“FLLO Term Loan Facility Credit Agreement” means that certain Term Loan Agreement, dated as of December 19, 2019 ((i) as supplemented by that certain Class A Term Loan Supplement, dated as of December 19, 2019 (as amended, restated or otherwise modified from time to time), by and among Chesapeake, as borrower, the Debtor guarantors party thereto, GLAS USA LLC, as administrative agent, and the lenders party thereto, and (ii) as further amended, restated, or otherwise modified from time to time), by and among Chesapeake, the Debtor guarantors party thereto, GLAS USA LLC, as administrative agent, and the lenders party thereto.

“Free Cash Flow” (a non-GAAP measure) means net cash provided by operating activities (GAAP) less cash capital expenditures.

“G&A” means general and administrative expenses.

“GAAP” means U.S. generally accepted accounting principles.

“General Unsecured Claim” means any Claim against any Debtor that is not otherwise paid in full during the Chapter 11 Cases pursuant to an order of the Bankruptcy Court and is not an Administrative Claim, a Priority Tax Claim, an Other Priority Claim, an Other Secured Claim, a Revolving Credit Facility Claim, a FLLO Term Loan Facility Claim, a Second Lien Notes Claim, an Unsecured Notes Claim, an Intercompany Claim, or a Section 510(b) Claim.

“Marcellus Acquisition” means Chesapeake’s acquisition of Chief and associated non-operated interests held by affiliates of Radler and Tug Hill, Inc., which closed on March 9, 2022 with an effective date of January 1, 2022.

“MBbls” means thousand barrels.

“MMBbls” means million barrels.

“Mcf” means thousand cubic feet.

“Mcfe” means one thousand cubic feet of natural gas equivalent, with one barrel of oil or NGL converted to an equivalent volume of natural gas using the ratio of one barrel of oil or NGL to six Mcf of natural gas.

“MMcf” means million cubic feet.

“MMcfe” means million cubic feet of natural gas equivalent.

“New Common Stock” means the single class of common stock issued by Reorganized Chesapeake on the Effective Date.

“NGL” means natural gas liquids.

“NYMEX” means New York Mercantile Exchange.

“OPEC+” means Organization of the Petroleum Exporting Countries Plus.

“Petition Date” means June 28, 2020, the date on which the Debtors commenced the Chapter 11 Cases.

“Plan” means the Fifth Amended Joint Chapter 11 Plan of Reorganization of Chesapeake Energy Corporation and its Debtor Affiliates, attached as Exhibit A to the Confirmation Order.

“Present Value of Estimated Future Net Revenues or PV-10 (non-GAAP)” means the estimated future gross revenue to be generated from the production of proved reserves, net of estimated production and future development costs, using prices calculated as the average natural gas and oil price during the preceding 12-month period prior to the end of the current reporting period, (determined as the unweighted arithmetic average of prices on the first day of each month within the 12-month period) and costs in effect at the determination date (unless such costs are subject to change pursuant to contractual provisions), without giving effect to non-property related expenses such as general and administrative expenses, debt service and future income tax expense or to depreciation, depletion and amortization, discounted using an annual discount rate of 10%.

“Put Option Premium” means a nonrefundable aggregate fee of $60 million, which represents 10 percent of the Rights Offering Amount, payable to the Backstop Parties in accordance with, and subject to the terms of the

Backstop Commitment Agreement based on their respective backstop commitment percentages at the time such payment is made.

“Radler” means Radler 2000 Limited Partnership.

“Rights Offering” means the New Common Stock rights offering for the Rights Offering Amount consummated by the Debtors on the Effective Date.

“SEC” means United States Securities and Exchange Commission.

“Second Lien Notes” means the 11.500% senior notes due 2025 issued by Chesapeake pursuant to the Second Lien Notes Indenture.

“Second Lien Notes Claim” means any Claim on account of the Second Lien Notes.

“Tranche A Loans” means the fully revolving loans made under and on the terms set forth under the Exit Credit Facility which will be partially funded on the Effective Date, will have a scheduled maturity of 3 years from the Effective Date, and shall at all times be repaid prior to the repayment of the Tranche B Loans.

“Tranche B Loans” means term loans made under and on the terms set forth under the Exit Credit Facility which will be fully funded on the Effective Date, will have a scheduled maturity of 4 years from the Effective Date, will be repaid or prepaid only after there are no Tranche A Loans outstanding, and once so prepaid or repaid, may not be reborrowed.

“Vine” means Vine Energy Inc.

“Vine Acquisition” means Chesapeake’s acquisition of Vine, which closed on November 1, 2021.

“Warrants” means collectively, the Class A Warrants, Class B Warrants and Class C Warrants.

“/Bbl” means per barrel.

“/Mcf” means per Mcf.

“/Mcfe” means per Mcfe.

“2021 Predecessor Period” means the period of January 1, 2021 through February 9, 2021.

“2021 Successor Period” means the period of February 10, 2021 through September 30, 2021.

“2021 Successor Quarter” means the three months ended September 30, 2021.

“2022 Successor Period” means the nine months ended September 30, 2022.

“2022 Successor Quarter” means the three months ended September 30, 2022.

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PART I. FINANCIAL INFORMATION


ITEM 1.			Condensed Consolidated Financial Statements

CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


	Successor
	September 30, 2022		December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	74	$	905
Restricted cash	56		9
Accounts receivable, net	1,757		1,115
Short-term derivative assets	4		5
Other current assets	168		69
Total current assets	2,059		2,103
Property and equipment:
Natural gas and oil properties, successful efforts method
Proved natural gas and oil properties	11,437		7,682
Unproved properties	2,192		1,530
Other property and equipment	506		495
Total property and equipment	14,135		9,707
Less: accumulated depreciation, depletion and amortization	(2,182)		(908)
Property and equipment held for sale, net	1		3
Total property and equipment, net	11,954		8,802

Other long-term assets	76		104
Total assets	$	14,089	$	11,009

The accompanying notes are an integral part of these condensed consolidated financial statements.

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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS – (Continued)

(Unaudited)


	Successor
	September 30, 2022		December 31, 2021
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	539	$	308
Accrued interest	40		38
Short-term derivative liabilities	1,875		899
Other current liabilities	1,784		1,202
Total current liabilities	4,238		2,447
Long-term debt, net	2,717		2,278
Long-term derivative liabilities	419		249
Asset retirement obligations, net of current portion	350		349
Other long-term liabilities	18		15
Total liabilities	7,742		5,338
Contingencies and commitments (Note 7)
Stockholders' equity:
Successor common stock, $0.01 par value, 450,000,000 shares authorized: 121,334,663 and 117,917,349 shares issued	1		1
Successor additional paid-in capital	5,627		4,845
Retained earnings	719		825
Total stockholders' equity	6,347		5,671
Total liabilities and stockholders' equity	$	14,089	$	11,009

The accompanying notes are an integral part of these condensed consolidated financial statements.

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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Successor
	Three Months Ended September 30, 2022		Three Months Ended September 30, 2021
Revenues and other:
Natural gas, oil and NGL	$	2,987	$	1,170
Marketing	1,206		627
Natural gas and oil derivatives	(1,029)		(910)
Gains (losses) on sales of assets	(2)		3
Total revenues and other	3,162		890
Operating expenses:
Production	121		80
Gathering, processing and transportation	286		219
Severance and ad valorem taxes	67		41
Exploration	2		2
Marketing	1,200		625
General and administrative	40		30

Depreciation, depletion and amortization	440		228

Other operating expense, net	1		3
Total operating expenses	2,157		1,228
Income (loss) from operations	1,005		(338)
Other income (expense):
Interest expense	(52)		(17)
Other income	4		—

Total other income (expense), net	(48)		(17)
Income (loss) before income taxes	957		(355)
Income tax expense (benefit)	74		(10)


Net income (loss) available to common stockholders	$	883	$	(345)
Earnings (loss) per common share:
Basic	$	7.29	$	(3.51)
Diluted	$	6.12	$	(3.51)
Weighted average common shares outstanding (in thousands):
Basic	121,150		98,221
Diluted	144,390		98,221

The accompanying notes are an integral part of these condensed consolidated financial statements.

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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – (Continued)

(Unaudited)


	Successor				Predecessor
	Nine Months Ended September 30, 2022		Period from February 10, 2021 through September 30, 2021		Period from January 1, 2021 through February 9, 2021
Revenues and other:
Natural gas, oil and NGL	$	7,691	$	2,615	$	398
Marketing	3,296		1,443		239
Natural gas and oil derivatives	(3,668)		(1,604)		(382)
Gains on sales of assets	298		9		5
Total revenues and other	7,617		2,463		260
Operating expenses:
Production	349		194		32
Gathering, processing and transportation	802		541		102
Severance and ad valorem taxes	187		106		18
Exploration	14		4		2
Marketing	3,279		1,440		237
General and administrative	102		69		21
Separation and other termination costs	—		11		22
Depreciation, depletion and amortization	1,300		579		72
Impairments	—		1		—
Other operating expense (income), net	32		1		(12)
Total operating expenses	6,065		2,946		494
Income (loss) from operations	1,552		(483)		(234)
Other income (expense):
Interest expense	(120)		(47)		(11)
Other income	29		31		2
Reorganization items, net	—		—		5,569
Total other income (expense), net	(91)		(16)		5,560
Income (loss) before income taxes	1,461		(499)		5,326
Income tax expense (benefit)	105		(10)		(57)


Net income (loss) available to common stockholders	$	1,356	$	(489)	$	5,383
Earnings (loss) per common share:
Basic	$	11.03	$	(4.99)	$	550.35
Diluted	$	9.35	$	(4.99)	$	534.51
Weighted average common shares outstanding (in thousands):
Basic	122,924		98,040		9,781
Diluted	145,031		98,040		10,071

The accompanying notes are an integral part of these condensed consolidated financial statements.

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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)


	Successor
	Three Months Ended September 30, 2022		Three Months Ended September 30, 2021
Net income (loss)	$	883	$	(345)
Other comprehensive income, net of income tax:
Reclassification of losses on settled derivative instruments	—		—
Other comprehensive income	—		—
Comprehensive income (loss)	$	883	$	(345)


	Successor				Predecessor
	Nine Months Ended September 30, 2022		Period from February 10, 2021 through September 30, 2021		Period from January 1, 2021 through February 9, 2021
Net income (loss)	$	1,356	$	(489)	$	5,383
Other comprehensive income, net of income tax:
Reclassification of losses on settled derivative instruments	—		—		3
Other comprehensive income	—		—		3
Comprehensive income (loss)	$	1,356	$	(489)	$	5,386

The accompanying notes are an integral part of these condensed consolidated financial statements.

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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Successor				Predecessor
	Nine Months Ended September 30, 2022		Period from February 10, 2021 through September 30, 2021		Period from January 1, 2021 through February 9, 2021
Cash flows from operating activities:
Net income (loss)	$	1,356	$	(489)	$	5,383
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	1,300		579		72
Deferred income tax expense (benefit)	19		—		(57)
Derivative losses, net	3,668		1,604		382
Cash payments on derivative settlements, net	(2,845)		(437)		(17)
Share-based compensation	16		5		3
Gains on sales of assets	(298)		(9)		(5)
Impairments	—		1		—
Non-cash reorganization items, net	—		—		(6,680)
Exploration	10		1		2
Other	19		10		45
Changes in assets and liabilities	(170)		(19)		851
Net cash provided by (used in) operating activities	3,075		1,246		(21)
Cash flows from investing activities:
Capital expenditures	(1,299)		(404)		(66)
Business combination, net	(1,967)		—		—
Proceeds from divestitures of property and equipment	409		9		—
Net cash used in investing activities	(2,857)		(395)		(66)
Cash flows from financing activities:
Proceeds from Exit Credit Facility - Tranche A Loans	7,255		30		—
Payments on Exit Credit Facility - Tranche A Loans	(6,805)		(80)		(479)
Payments on DIP Facility borrowings	—		—		(1,179)
Proceeds from issuance of senior notes, net	—		—		1,000
Proceeds from issuance of common stock	—		—		600
Proceeds from warrant exercise	3		2		—
Debt issuance and other financing costs	—		(3)		(8)
Cash paid to repurchase and retire common stock	(667)		—		—
Cash paid for common stock dividends	(788)		(67)		—
Other	—		(1)		—
Net cash used in financing activities	(1,002)		(119)		(66)
Net increase (decrease) in cash, cash equivalents and restricted cash	(784)		732		(153)
Cash, cash equivalents and restricted cash, beginning of period	914		126		279
Cash, cash equivalents and restricted cash, end of period	$	130	$	858	$	126

The accompanying notes are an integral part of these condensed consolidated financial statements.

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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS – (Continued)

(Unaudited)


	Successor				Predecessor
	Nine Months Ended September 30, 2022		Period from February 10, 2021 through September 30, 2021		Period from January 1, 2021 through February 9, 2021

Cash and cash equivalents	$	74	$	849	$	40
Restricted cash	56		9		86
Total cash, cash equivalents and restricted cash	$	130	$	858	$	126

Supplemental disclosures to the condensed consolidated statements of cash flows are presented below:


	Successor				Predecessor
	Nine Months Ended September 30, 2022		Period from February 10, 2021 through September 30, 2021		Period from January 1, 2021 through February 9, 2021
Supplemental cash flow information:
Cash paid for reorganization items, net	$	—	$	65	$	66
Interest paid, net of capitalized interest	$	107	$	33	$	13
Income taxes paid, net of refunds received	$	181	$	(3)	$	—

Supplemental disclosure of significant non-cash investing and financing activities:
Change in accrued drilling and completion costs	$	193	$	25	$	(5)
Put option premium on equity backstop agreement	$	—	$	—	$	60
Common stock issued for business combination	$	764	$	—	$	—
Operating lease obligations recognized	$	25	$	—	$	—

The accompanying notes are an integral part of these condensed consolidated financial statements.

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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)


	Preferred Stock			Common Stock
	Shares	Amount		Shares	Amount		Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income		Total Stockholders' Equity
Balance as of December 31, 2021 (Successor)	—	$	—	117,917,349	$	1	$	4,845	$	825	$	—	$	5,671
Issuance of common stock for Marcellus Acquisition	—	—		9,442,185	—		764		—		—		764
Share-based compensation	—	—		23,169	—		5		—		—		5
Issuance of common stock for warrant exercise	—	—		669,669	—		1		—		—		1
Repurchase and retirement of common stock	—	—		(1,000,000)	—		—		(83)		—		(83)
Net loss	—	—		—	—		—		(764)		—		(764)
Dividends on common stock	—	—		—	—		—		(211)		—		(211)
Balance as of March 31, 2022 (Successor)	—	$	—	127,052,372	$	1	$	5,615	$	(233)	$	—	$	5,383
Share-based compensation	—	—		146,054	—		3		—		—		3
Issuance of common stock for warrant exercise	—	—		166,606	—		1		—		—		1
Issuance of reserved common stock and warrants	—	—		36,951	—		—		—		—		—
Repurchase and retirement of common stock	—	—		(5,811,727)	—		—		(515)		—		(515)
Net income	—	—		—	—		—		1,237		—		1,237
Dividends on common stock	—	—		—	—		—		(301)		—		(301)
Balance as of June 30, 2022 (Successor)	—	$	—	121,590,256	$	1	$	5,619	$	188	$	—	$	5,808
Share-based compensation	—	—		991	—		7		—		—		7
Issuance of common stock for warrant exercise	—	—		493,016	—		1		—		—		1

Repurchase and retirement of common stock	—	—		(749,600)	—		—		(69)		—		(69)
Net income	—	—		—	—		—		883		—		883
Dividends on common stock	—	—		—	—		—		(283)		—		(283)
Balance as of September 30, 2022 (Successor)	—	$	—	121,334,663	$	1	$	5,627	$	719	$	—	$	6,347

The accompanying notes are an integral part of these condensed consolidated financial statements.

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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - (Continued)

(Unaudited)



	Preferred Stock			Common Stock
	Shares	Amount		Shares	Amount		Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income		Total Stockholders' Equity
Balance as of December 31, 2020 (Predecessor)	5,563,358	$	1,631	9,780,547	$	—	$	16,937	$	(23,954)	$	45	$	(5,341)
Share-based compensation	—	—		67	—		3		—		—		3
Hedging activity	—	—		—	—		—		—		3		3
Net income	—	—		—	—		—		5,383		—		5,383
Cancellation of Predecessor Equity	(5,563,358)	(1,631)		(9,780,614)	—		(16,940)		18,571		(48)		(48)
Issuance of Successor common stock	—	—		97,907,081	1		3,330		—		—		3,331
Issuance of Successor Class A warrants	—	—		—	—		93		—		—		93
Issuance of Successor Class B warrants	—	—		—	—		94		—		—		94
Issuance of Successor Class C warrants	—	—		—	—		68		—		—		68
Balance as of February 9, 2021 (Predecessor)	—	$	—	97,907,081	$	1	$	3,585	$	—	$	—	$	3,586



Balance as of February 10, 2021 (Successor)	—	$	—	97,907,081	$	1	$	3,585	$	—	$	—	$	3,586
Net income	—	—		—	—		—		295		—		295
Balance as of March 31, 2021 (Successor)	—	$	—	97,907,081	$	1	$	3,585	$	295	$	—	$	3,881
Share-based compensation	—	—		921	—		3		—		—		3
Issuance of common stock for warrant exercise	—	—		46,035	—		2		—		—		2
Net loss	—	—		—	—		—		(439)		—		(439)
Dividends on common stock	—	—		—	—		—		(34)		—		(34)
Balance as of June 30, 2021 (Successor)	—	$	—	97,954,037	$	1	$	3,590	$	(178)	$	—	$

CHESAPEAKE ENERGY CORP [CHK] Filings
CHESAPEAKE ENERGY CORP [CHKEW] Filings
CHESAPEAKE ENERGY CORP [CHKEZ] Filings
CHESAPEAKE ENERGY CORP [CHKEL] Filings
10-Q	[2022-11-01]
10-Q	[2022-08-02]
10-Q	[2022-05-06]
10-K	[2022-02-24]
10-Q	[2021-11-02]
10-Q	[2021-08-10]
10-Q	[2021-05-13]
10-K	[2021-03-01]
10-Q	[2020-11-09]
10-Q	[2020-08-10]
10-Q	[2020-05-11]
10-K	[2020-02-27]
10-Q	[2019-11-05]
10-Q	[2019-08-06]
10-Q	[2019-05-09]
10-K	[2019-02-27]
10-Q	[2018-10-30]
10-Q	[2018-08-01]
10-Q	[2018-05-02]
10-K	[2018-02-22]
10-Q	[2017-11-02]
10-Q	[2017-08-03]
10-Q	[2017-05-04]
10-K	[2017-03-03]
10-Q	[2016-11-03]
10-Q	[2016-08-04]
10-Q	[2016-05-05]
10-K	[2016-02-25]
10-Q	[2015-11-04]
10-Q	[2015-08-05]
10-Q	[2015-05-06]
10-K	[2015-02-27]
10-Q	[2014-11-06]
10-Q	[2014-08-06]
10-Q	[2014-05-07]
10-K	[2014-02-27]
10-Q	[2013-11-06]
10-Q	[2013-08-06]
10-Q	[2013-05-10]
10-K	[2013-03-01]
10-Q	[2012-11-09]
10-Q	[2012-08-09]
10-Q	[2012-05-11]
10-K	[2012-02-29]

CHESAPEAKE ENERGY CORP [CHK] Filings

CHESAPEAKE ENERGY CORP [CHKEW] Filings

CHESAPEAKE ENERGY CORP [CHKEZ] Filings

CHESAPEAKE ENERGY CORP [CHKEL] Filings