I need help answer Number 2. For number one I got -7.97
CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31. 2015 2014 (3 In millions) CURRENT ASSETS: Cash and cash equivalents ($1 and $1 attributable to our VIE) $ 825 $ 4.108 Restricted cash ......................................................................................... 33 Accounts receivable. net ........................................................................... 1.129 2.236 Short-term derivative assets ($0 and $18 attributable to our VIE) ............ 366 879 Other current assets 160 207 Total Current Assets 2.480 7.468 PROPERTY AND EQUIPMENT: Oil and natural gas properties, at cost based on full cost accounting: Proved oil and natural gas properties ($488 and $488 attributable to our VIE) ............................................ 63,843 58,594 Unproved properties ............................................................................. 6.798 9,783 Other property and equipment .................................................................. 2.927 3.083 Total Property and Equipment, at Cost ............................................. 73.583 71,465 Lees: accumulated depreciation. depletion and amortization (($428) and ($251) attributable to our VIE) ............................................ (59,365) (39,043) Property and equipment held for sale, net ................................................ 95 93 Total Property and Equipment, Net .................................................. 14,298 32,515 LONG-TERM ASSETS: investments .............................................................................................. 136 265 Long-term derivative assets ...................................................................... 246 6 Other long-term assets ............................................................................. 197 497 TOTAL ASSETS ........................................................................................... $ 1?.357 $ 40.?51 CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - (Continued) December 31, 2015 2014 CURRENT LIABILITIES: Accounts payable ...... $ 944 $ 2,049 Current maturities of long-term debt, net . 381 381 Accrued interest ...... 101 150 Short-term derivative liabilities ........... 40 15 Other current liabilities ($8 and $15 attributable to our VIE) ..................... 2,219 3,061 Total Current Liabilities ......... 3,685 6,656 LONG-TERM LIABILITIES: Long-term debt, net 10,354 11,154 Deferred income tax liabilities .......... 4,392 Long-term derivative liabilities ....... 60 218 Asset retirement obligations, net of current portion ........... 452 447 Other long-term liabilities .. 409 679 Total Long-Term Liabilities.. 11,275 16,890 CONTINGENCIES AND COMMITMENTS (Note 4) EQUITY Chesapeake Stockholders' Equity: Preferred stock, $0.01 par value, 20,000,000 shares authorized: 7,251,515 shares outstanding ...... 3,062 3,062 Common stock, $0.01 par value, 1,000,000,000 shares authorized: 364,795,509 and 664,944,232 shares issued ...... 7 Paid-in capital .. 12,403 12,531 Retained earnings (accumulated deficit) (13,202) 1,483 Accumulated other comprehensive loss . (99) (143) Less: treasury stock, at cost; 1,437,724 and 1,614,312 common shares (33) (37) Total Chesapeake Stockholders' Equity. 2,138 16,903 Noncontrolling interests 259 1,302 Total Equity. 2,397 18,205 TOTAL LIABILITIES AND EQUITY. 17,357 40,751CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Years Ended December 31, 2015 2014 2013 ($ in millions except per share data) REVENUES: Oil, natural gas and NGL .. $ 5,391 $ 10,354 $ 8,626 Marketing, gathering and compression ......... 7,373 12,225 9.559 Oilfield services ...... . .. ....... 546 395 Total Revenues ......... 12,764 23,125 19,080 OPERATING EXPENSES: Oil, natural gas and NGL production ........ 1,046 1,208 1,159 Oil, natural gas and NGL gathering, processing and transportation.......... 2, 119 2,174 1,574 Production taxes ..... 99 232 229 Marketing, gathering and compression 7,130 12,236 9,461 Oilfield services ..... 431 736 General and administrative .......... 235 322 457 Restructuring and other termination costs ......... 36 248 Provision for legal contingencies ... 353 234 Oil, natural gas and NGL depreciation, depletion and amortization... 2,099 2,683 2,589 Depreciation and amortization of other assets ................" 130 232 314 Impairment of oil and natural gas properties ........"."." 18,238 Impairments of fixed assets and other .................... 194 88 546 Net (gains) losses on sales of fixed assets (199) (302 Total Operating Expenses. 31,683 19,648 17,011 INCOME (LOSS) FROM OPERATIONS (18,919) 3,477 2,069 OTHER INCOME (EXPENSE): Interest expense ........ (317) (89) (227) Losses on investments ......... (96) (75) (216) Impairments of investments (53) (5) (10) Net gain (loss) on sales of investments . 67 (7) Gains (losses) on purchases or exchanges of debt........ 279 (197) (193) Other income ...... 8 22 26 Total Other Expense . ............:";";" 179 277) 627) INCOME (LOSS) BEFORE INCOME TAXES (19,098) 3,200 1,442 INCOME TAX EXPENSE (BENEFIT): Current income taxes (36) 47 22 Deferred income taxes ...... (4,427) 1,097 526 Total Income Tax Expense (Benefit).................... (4,463) 1,144 548 NET INCOME (LOSS) ...... (14,635) 2,056 394 Net income attributable to noncontrolling interests ............. (50) (139) 170) NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE .. (14,685) 1,917 724 Preferred stock dividends ......................" ..... (171) (171) (171) Repurchase of preferred shares of CHK Utica ...... (447 ) (69) Earnings allocated to participating securities (26) (10) NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS........ $ (14,856) $ 1,273 $ 474 EARNINGS (LOSS) PER COMMON SHARE: Basic ....... $ (22.43) $ 1.93 $ 0.73 $ (22.43) 1.87 $ 0.73 CASH DIVIDEND DECLARED PER COMMON SHARE 0.0875 0.35 $ 0.35 WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING (in millions): Basic ..... 662 659 653 Diluted ....... ...... 662 72 653 The accompanying notes are an integral part of these consolidated financial statements. 77CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) 3. Debt Our long-term debt consisted of the following as of December 31, 2015 and 2014: December 31, 2015 December 31, 2014 Principal Carrying Principa Carrying Amount Amount Amount Amount $ in millions) 3.25% senior notes due 2016........... $ 381 $ 381 $ 500 $ 500 6.25% euro-denominated senior notes due 2017(@)(b) 329 329 416 416 6.5% senior notes due 2017(). 453 452 660 659 7.25% senior notes due 2018(6) 538 538 669 369 Floating rate senior notes due 2019() 1,104 1,104 1,500 1,500 6.625% senior notes due 2020(6) 822 822 1,300 1,300 6.875% senior notes due 2020() 304 303 500 497 6.125% senior notes due 2021(0) 589 589 1,000 1,000 5.375% senior notes due 2021(0) 286 286 700 700 4.875% senior notes due 2022() 639 639 1,500 1,500 8.00% senior secured second lien notes due 2022() 2,425 3,584 5.75% senior notes due 2023() 384 384 1,100 1,100 2.75% contingent convertible senior notes due 2035()(d)" 2 2 396 381 2.5% contingent convertible senior notes due 2037()(c)(d) 1,110 1,026 1,168 1,024 2.25% contingent convertible senior notes due 2038()(c)(d) 340 289 347 279 Revolving credit facility ..... interest rate derivatives() 10 Total debt, net ....... 9,706 10,735 11,756 11,535 Less current maturities of long-term debt, net() ..... (381) (381) (396 381) Total long-term debt, net...... 9,325 $ 10,354 $ 11,360 $ 11,154 a) The principal amount shown is based on the exchange rate of $1.0862 to E1.00 and $1.2098 to E1.00 as of December 31, 2015 and 2014, respectively. See Foreign Currency Derivatives in Note 11 for information on our related foreign currency derivatives. (b) In 2015, a portion of these outstanding senior unsecured notes were exchanged for newly issued 8.00% Senior Secured Second Lien Notes due 2022. See Chesapeake Senior Secured Second Lien Notes and Chesapeake Senior Notes and Contingent Convertible Senior Notes below for further discussion regarding these transactions. (c) The repurchase, conversion, contingent interest and redemption provisions of our contingent convertible senior notes are as follows: Holders' Demand Repurchase Rights. The holders of our contingent convertible senior notes may require us to repurchase, in cash, all or a portion of their notes at 100% of the principal amount of the notes on any of four dates that are five, ten, fifteen and twenty years before the maturity date. Optional Conversion by Holders. At the holder's option, prior to maturity under certain circumstances, the notes are convertible into cash and, if applicable, shares of our common stock using a net share settlement process. One triggering circumstance is when the price of our common stock exceeds a threshold amount during a specified period in a fiscal quarter. Convertibility based on common stock price is measured quarterly. DuringAttached please nd Income Statement, Balance Sheet, and footnote 3 on Debt from Chesapeake Energy's 2015 Annual Report. Answer the following questions. Note that \"Carrying Amount\" is NBV, and \"Principal Amount\" is Par. All rates in the footnote are coupon rates. Assume annual compounding. 1. Calculate the rm's ratio of income before income taxes divided by Total Equity. 2. The effective 1% on the 8.00% senior secured second lien notes due 2022 (row 11 in the table) is 3.5%. What is these bonds carrying amount at December 31, 2016'? 3. 861 (1,500 - 639) of the 4.875% senior notes due 2022 (row 10) was swapped at year end for 700 NBV of the new 8.0% bonds (row 11). That's why the NBV (and Pa: value) of the 4.875% Senior Notes decreased from 1,500 to 639. Recalculate the entry in #1 without the swap. Ignore taxes. 4. Had the 6.625% senior notes due 2020 included a conversion option, the coupon rate and effective rate on these bonds would have been 5.0%- Assmne no change in the cash coupon. Recalculate the ratio in #1 if these bonds had a conversion option. Assume the standard accounting (i.e., ignoring the conversion option). 5. Redo #4 correctly accounting for the equity value of the conversion option
