This excerpt taken from the CHK 10-Q filed Nov 1, 2005.
6. Segment Information
In accordance with Statement of Financial Accounting Standards No. 131, Disclosures about Segments of an Enterprise and Related Information, we have identified two reportable operating segments. These segments are managed separately because of the nature of their products and services. Chesapeakes two segments are the exploration and production segment and the marketing segment. The exploration and production segment is responsible for finding and producing natural gas and crude oil. The marketing segment is responsible for gathering, processing, transporting, and selling natural gas and crude oil production primarily from Chesapeake operated wells. Revenues from the marketing segments sale of oil and gas related to Chesapeakes ownership interests are reflected as exploration and production revenues. Such amounts totaled $617.4 million and $349.6 million for the Current Quarter and the Prior Quarter, respectively, and $1.487 billion and $932.0 million for the Current Period and the Prior Period, respectively.
Management evaluates the performance of our segments based upon income before income taxes.
CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)