This excerpt taken from the CHK 8-K filed Feb 6, 2007.
Company Updates 2006 Hedging Gains and 2007-2008 Hedging Positions
Chesapeake generated realized hedging gains of approximately $1.3 billion in 2006, or $2.17 per mcfe of production. After previously lifting a portion of its 2007-2008 hedges during the past few months of natural gas price weakness and securing gains of approximately $725 million for these hedges, the company has recently reestablished many of its hedges at equally attractive prices.
The following tables compare Chesapeakes hedged production volumes through swaps and collars as of February 5, 2007 to those previously announced as of December 11, 2006. Additionally, the gains from lifted natural gas hedges are presented as of February 5, 2007. Depending on changes in oil and natural gas futures markets and managements view of underlying oil and natural gas supply and demand trends, Chesapeake may either increase or decrease its hedging positions at any time in the future without notice.