CHK » Topics » Debt Issue Costs

This excerpt taken from the CHK 8-K filed Jun 25, 2009.

Debt Issue Costs

Included in other assets are costs associated with the issuance of our senior notes and costs associated with our revolving bank credit facility and hedging facilities. The remaining unamortized debt issue costs at December 31, 2008 and 2007 totaled $142 million and $125 million, respectively, and are being amortized over the life of the senior notes, revolving credit facilities or hedging facilities.

 

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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

 

This excerpt taken from the CHK 10-K filed Mar 2, 2009.

Debt Issue Costs

Included in other assets are costs associated with the issuance of our senior notes and costs associated with our revolving bank credit facility and hedging facilities. The remaining unamortized debt issue costs at December 31, 2008 and 2007 totaled $157 million and $138 million, respectively, and are being amortized over the life of the senior notes, revolving credit facilities or hedging facilities.

These excerpts taken from the CHK 10-K filed Feb 29, 2008.

Debt Issue Costs

Included in other assets are costs associated with the issuance of our senior notes and costs associated with our revolving bank credit facility and hedging facilities. The remaining unamortized debt issue costs at December 31, 2007 and 2006 totaled $138 million and $116 million, respectively, and are being amortized over the life of the senior notes, revolving credit facility or hedging facilities.

Debt Issue Costs

FACE="Times New Roman" SIZE="2">Included in other assets are costs associated with the issuance of our senior notes and costs associated with our revolving bank credit facility and hedging facilities. The remaining unamortized debt issue costs at
December 31, 2007 and 2006 totaled $138 million and $116 million, respectively, and are being amortized over the life of the senior notes, revolving credit facility or hedging facilities.

STYLE="margin-top:18px;margin-bottom:0px; margin-left:2%">Asset Retirement Obligations

SIZE="2">Chesapeake follows Statement of Financial Accounting Standards (SFAS) No. 143, Accounting for Asset Retirement Obligations. This statement applies to obligations associated with the retirement of tangible long-lived assets that
result from the acquisition, construction and development of the assets.

SFAS 143 requires that the fair value of a liability for a
retirement obligation be recognized in the period in which the liability is incurred. For oil and natural gas properties, this is the period in which an oil or natural gas well is acquired or drilled. The asset retirement obligation is capitalized
as part of the carrying amount of our oil and natural gas properties at its discounted fair value. The liability is then accreted each period until the liability is settled or the well is sold, at which time the liability is reversed.

STYLE="margin-top:18px;margin-bottom:0px; margin-left:2%">Revenue Recognition

Oil and
Natural Gas Sales
.    Revenue from the sale of oil and natural gas is recognized when title passes, net of royalties.

SIZE="2">Natural Gas Imbalances.    We follow the “sales method” of accounting for our natural gas revenue whereby we recognize sales revenue on all natural gas sold to our purchasers, regardless of whether the
sales are proportionate to our ownership in the property. An asset or a liability is recognized to the extent that we have an imbalance in excess of the remaining natural gas reserves on the underlying properties. The natural gas imbalance net
position at December 31, 2007 and 2006 was a liability of $4 million and $5 million, respectively.

Marketing
Sales
.    Chesapeake takes title to the natural gas it purchases from other working interest owners in operated wells, arranges for transportation and delivers the natural gas to third parties, at which time revenues are
recorded. Chesapeake’s results of operations related to its oil and natural gas marketing activities are presented on a “gross” basis, because we act as a principal rather than an agent. All significant intercompany accounts and
transactions have been eliminated.

This excerpt taken from the CHK 10-K filed Mar 1, 2007.

Debt Issue Costs

Included in other assets are costs associated with the issuance of our senior notes and costs associated with our revolving bank credit facility. The remaining unamortized debt issue costs at December 31, 2006 and 2005 totaled $116.0 million and $92.2 million, respectively, and are being amortized over the life of the senior notes or revolving credit facility.

This excerpt taken from the CHK 10-K filed Mar 14, 2006.

Debt Issue Costs

Included in other assets are costs associated with the issuance of our senior notes and costs associated with our revolving bank credit facility. The remaining unamortized debt issue costs at December 31, 2005 and 2004 totaled $92.2 million and $54.4 million, respectively, and are being amortized over the life of the senior notes or revolving credit facility.

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