Chesapeake Energy(US:CHK)2023-02-21 16:00Asset Management - As of December 31, 2022, the company owned interests in approximately 8,400 natural gas and oil wells, with significant resource plays in the Marcellus and Haynesville Shales [230]. - The company completed the sale of a portion of its Eagle Ford assets to WildFire Energy I LLC for $1.425 billion and to INEOS Energy for $1.4 billion, both transactions expected to close in 2023 [236][237]. - The company completed the Marcellus Acquisition for approximately $2 billion and 9.4 million shares of common stock in the 2022 Successor Period [267]. - In the 2022 Successor Period, the company sold Powder River Basin assets for approximately $450 million [265]. - The company has made capital contributions of $18 million towards a new natural gas gathering pipeline and carbon capture project, expected to be operational by Q4 2024 [238]. - The company issued 18,709,399 shares of common stock for the Vine Acquisition, valued at $1,237 million [364]. - The company evaluates the carrying value of assets held for sale, including a portion of the Eagle Ford assets, which are under agreement for sale [391]. Financial Performance - Revenues for 2022 reached $11,743 million, a significant increase of 111.5% compared to $5,549 million in 2021 [351]. - Net income for 2022 was $4,936 million, compared to $945 million in 2021, marking a 422.5% increase [351]. - Basic earnings per share rose to $38.71 in 2022 from $9.29 in 2021, reflecting a 316.5% increase [351]. - Cash provided by operating activities was $4.12 billion in the 2022 Successor Period, primarily due to higher prices and increased volumes sold [262]. - The company reported total natural gas, oil, and NGL sales of $9.892 billion for the year ended December 31, 2022 [279]. - The company reported gains on sales of assets amounting to $300 million in 2022, compared to $12 million in 2021 [351]. - The company reported a net cash used in investing activities of $3,401 million, compared to $850 million in the previous year [359]. Shareholder Returns - The company repurchased approximately 11.7 million shares of common stock in 2022, with $927 million remaining under the share repurchase program as of December 31, 2022 [241]. - The company paid approximately $1.2 billion in dividends during 2022, with a 10% increase in the quarterly base dividend to $0.55 per share starting September 1, 2022 [241]. - The company paid common stock base dividends of $256 million and variable dividends of $956 million in the 2022 Successor Period [273]. - Cash paid for common stock dividends was $1,212 million, compared to $119 million in 2021 [359]. - The company repurchased and retired 11,666,778 shares of common stock, resulting in a reduction of $1,073 million in equity [364]. Debt and Liquidity - The company entered into a new senior secured reserve-based revolving credit agreement with an initial borrowing base of $3.5 billion and aggregate commitments of $2.0 billion, maturing in December 2027 [240]. - As of December 31, 2022, the company had $1.0 billion of liquidity available, including $130 million in cash and $0.9 billion in unused borrowing capacity [248]. - The company reduced total indebtedness by $9.4 billion as a result of its Chapter 11 Cases, strengthening its balance sheet [247]. - The company had $1.05 billion of outstanding borrowings under its New Credit Facility as of December 31, 2022 [318]. - Long-term debt increased to $3,093 million in 2022, compared to $2,278 million in 2021, representing a 35.8% increase [349]. Operational Metrics - Total natural gas production for 2022 was 3,584 MMcf per day, with an average sales price of $5.96 per Mcf [278]. - Natural gas, oil, and NGL sales in the 2022 Successor Period increased by $5.093 billion compared to the combined 2021 Successor and Predecessor Periods, driven by a $2.773 billion increase in revenues from higher average prices and a $2.320 billion increase due to higher volumes in Marcellus and Haynesville [280]. - Average realized price for natural gas in 2022 was $3.67 per Mcf, while the average realized price for oil was $66.36 per Bbl [278]. - The Eagle Ford region produced 127 MMcf of natural gas per day and 51 MBbl of oil per day in 2022, with an average sales price of $96.10 per Bbl for oil [278]. - Total production expenses in the 2022 Successor Period increased by $146 million compared to the combined 2021 Successor and Predecessor Periods, primarily due to the Vine Acquisition and the Marcellus Acquisition [281]. Environmental Goals - The company has set a goal to achieve net zero greenhouse gas emissions (Scope 1 and 2) by 2035, with specific targets for methane intensity and GHG intensity reductions by 2025 [232]. - The company recognized liabilities for asset retirement obligations, which are accreted until settled or the well is sold [400]. Accounting and Reporting - The financial statements were prepared in accordance with GAAP, including the accounts of wholly owned subsidiaries and controlling interests [369]. - The company adopted fresh start accounting as of February 9, 2021, following its emergence from bankruptcy on that date [325]. - The company assesses long-lived assets for impairment whenever there are changes indicating a possible significant deterioration in future cash flows [311]. - The company utilizes a successful efforts method for accounting for natural gas and oil properties, expensing exploration costs as incurred [381]. - The company maintains effective internal control over financial reporting as of December 31, 2022, based on established criteria [328].