Interest Rate Risk for Chesapeake

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CHK » Topics » Interest Rate Risk

These excerpts taken from the CHK 10-K filed Mar 2, 2009.

Interest Rate Risk

The table below presents principal cash flows and related weighted average interest rates by expected maturity dates. As of December 31, 2008, the fair value of the fixed-rate long-term debt has been estimated based on quoted market prices.


	Years of Maturity
	2009		2010		2011		2012		2013		Thereafter		Total
	($ in millions)
Liabilities:
Long-term debt – fixed-rate (a)	$	—	$	—	$	—	$	—	$	864	$	9,260	$	10,124
Average interest rate		—		—		—		—		7.6		5.4		5.6

Long-term debt – variable rate	$	—	$	—	$	—	$	3,474	$	460	$	—	$	3,934
Average interest rate		—		—		—		1.8		3.0		—		2.0

(a)	This amount does not include the discount included in long-term debt of ($85) million and interest rate derivatives of $211 million.

Changes in interest rates affect the amount of interest we earn on our cash, cash equivalents and short-term investments and the interest rate we pay on borrowings under our revolving bank credit facility. All of our other long-term indebtedness is fixed rate and, therefore, does not expose us to the risk of earnings or cash flow loss due to changes in market interest rates. However, changes in interest rates do affect the fair value of our debt.

Interest Rate Risk

FACE="Times New Roman" SIZE="2">The table below presents principal cash flows and related weighted average interest rates by expected maturity dates. As of December 31, 2008, the fair value of the fixed-rate long-term debt has been estimated
based on quoted market prices.


	Years of Maturity
	2009		2010		2011		2012		2013		Thereafter		Total
	($ in millions)
Liabilities:
Long-term debt – fixed-rate (a)	$	—	$	—	$	—	$	—	$	864	$	9,260	$	10,124
Average interest rate		—		—		—		—		7.6		5.4		5.6

Long-term debt – variable rate	$	—	$	—	$	—	$	3,474	$	460	$	—	$	3,934
Average interest rate		—		—		—		1.8		3.0		—		2.0

(a)	This amount does not include the discount included in long-term debt of ($85) million and interest rate derivatives of $211 million.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">Changes in interest rates affect the amount of interest we earn on our cash, cash equivalents and short-term investments and the interest rate we pay on
borrowings under our revolving bank credit facility. All of our other long-term indebtedness is fixed rate and, therefore, does not expose us to the risk of earnings or cash flow loss due to changes in market interest rates. However, changes in
interest rates do affect the fair value of our debt.

This excerpt taken from the CHK 10-Q filed Nov 10, 2008.

Interest Rate Risk

The table below presents principal cash flows and related weighted average interest rates by expected maturity dates.


	Years of Maturity
	2008		2009		2010		2011		2012			Thereafter			Total
	($ in billions)
Liabilities:
Long-term debt – fixed rate^(a)	$	—	$	—	$	—	$	—	$	—		$	10.899		$	10.899
Average interest rate		—		—		—		—		—			5.4	%		5.4	%
Long-term debt – variable rate	$	—	$	—	$	—	$	—	$	3.474		$	—		$	3.474
Average interest rate		—		—		—		—		4.0	%		—			4.0	%

(a)	This amount does not include the discount included in long-term debt of ($90) million and the impact of interest rate derivatives of $62 million.

This excerpt taken from the CHK 10-Q filed Aug 11, 2008.

Interest Rate Risk

The table below presents principal cash flows and related weighted average interest rates by expected maturity dates. As of June 30, 2008, the fair value of the fixed-rate long-term debt has been estimated based on quoted market prices.


	Years of Maturity
	2008			2009		2010		2011		2012			Thereafter			Total
	($ in billions)
Liabilities:
Long-term debt – fixed-rate^(a)	$	0.690		$	—	$	—	$	—	$	—		$	10.609		$	11.299
Average interest rate		2.8	%		—		—		—		—			5.6	%		5.5	%
Long-term debt – variable rate	$	—		$	—	$	—	$	—	$	2.513		$	—		$	2.513
Average interest rate		—			—		—		—		3.5	%		—			3.5	%

(a)	This amount does not include the discount included in long-term debt of ($100) million and the impact of interest rate derivatives of ( $8) million.

This excerpt taken from the CHK 10-Q filed May 12, 2008.

Interest Rate Risk

The table below presents principal cash flows and related weighted average interest rates by expected maturity dates. As of March 31, 2008, the fair value of the fixed-rate long-term debt has been estimated based on quoted market prices.


	Years of Maturity
	2008		2009		2010		2011		2012			Thereafter			Total
	($ in billions)
Liabilities:
Long-term debt – fixed-rate^(a)	$	—	$	—	$	—	$	—	$	—		$	9.122		$	9.122
Average interest rate		—		—		—		—		—			5.8	%		5.8	%
Long-term debt – variable rate	$	—	$	—	$	—	$	—	$	3.164		$	—		$	3.164
Average interest rate		—		—		—		—		3.7	%		—			3.7	%

(a)	This amount does not include the discount included in long-term debt of ($102) million and the impact of interest rate derivatives of $66 million.

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

Interest Rate Risk

The table below presents principal cash flows and related weighted average interest rates by expected maturity dates. As of December 31, 2007, the fair value of the fixed-rate long-term debt has been estimated based on quoted market prices.


	Years of Maturity
	2008		2009		2010		2011		2012			Thereafter			Total			Fair Value
	($ in billions)
Liabilities:
Long-term debt—fixed-rate (a)	$	—	$	—	$	—	$	—	$	—		$	9.050		$	9.050		$	9.179
Average interest rate		—		—		—		—		—			5.8	%		5.8	%		5.8	%

Long-term debt—variable rate	$	—	$	—	$	—	$	—	$	1.950		$	—		$	1.950		$	1.950
Average interest rate		—		—		—		—		5.8	%		—			5.8	%		5.8	%

(a)	This amount does not include the discount included in long-term debt of ($105) million and the impact of interest rate derivatives of $55 million.

Interest Rate Risk

FACE="Times New Roman" SIZE="2">The table below presents principal cash flows and related weighted average interest rates by expected maturity dates. As of December 31, 2007, the fair value of the fixed-rate long-term debt has been estimated
based on quoted market prices.


	Years of Maturity
	2008		2009		2010		2011		2012			Thereafter			Total			Fair Value
	($ in billions)
Liabilities:
Long-term debt—fixed-rate (a)	$	—	$	—	$	—	$	—	$	—		$	9.050		$	9.050		$	9.179
Average interest rate		—		—		—		—		—			5.8	%		5.8	%		5.8	%

Long-term debt—variable rate	$	—	$	—	$	—	$	—	$	1.950		$	—		$	1.950		$	1.950
Average interest rate		—		—		—		—		5.8	%		—			5.8	%		5.8	%

(a)	This amount does not include the discount included in long-term debt of ($105) million and the impact of interest rate derivatives of $55 million.

This excerpt taken from the CHK 10-Q filed Nov 9, 2007.

Interest Rate Risk

The table below presents principal cash flows and related weighted average interest rates by expected maturity dates. As of September 30, 2007, the fair value of the fixed-rate long-term debt has been estimated based on quoted market prices.


	Years of Maturity
	2007		2008		2009		2010		2011			Thereafter			Total			Fair Value
	($ in billions)
Liabilities:
Long-term debt - fixed-rate^(a)	$	—	$	—	$	—	$	—	$	—		$	9.027		$	9.027		$	9.068
Average interest rate		—		—		—		—		—			5.8	%		5.8	%		5.8	%

Long-term debt - variable rate	$	—	$	—	$	—	$	—	$	1.950		$	—		$	1.950		$	1.950
Average interest rate		—		—		—		—		6.6	%		—			6.6	%		6.6	%

(a)	This amount does not include the discount included in long-term debt of ($107) million and the premium for interest rate swaps of $2 million.

EXCERPTS ON THIS PAGE:

10-K (2 sections)	Mar 2, 2009

10-Q	Nov 10, 2008

10-Q	Aug 11, 2008

10-Q	May 12, 2008

10-K (2 sections)	Feb 29, 2008

10-Q	Nov 9, 2007

Chesapeake Energy (CHK)

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