(a) Includes the effect of VPP #10 sale in March 2012 (which had an average production loss impact of approximately 100 mmcfe and 115 mmcfe per day in the 2012 third and second quarters, respectively). Also includes the effect of net natural gas production curtailments of approximately 30 bcf in the 2012 second quarter, or an average of approximately 330 mmcf per day.
(b) Includes the effects of realized gains (losses) from hedging, but excludes the effects of unrealized gains (losses) from hedging.
(c) “Liquids” includes both oil and NGL.
(d) Includes revenue and operating costs and excludes depreciation and amortization of other assets.(e) Excludes expenses associated with noncash stock-based compensation. (f) Increase from 2012 second quarter due to an increase in the amortizable base resulting from leasehold impairments and expirations in addition to a further decrease in estimated proved reserves resulting from lower natural gas prices. (g) Decrease from 2012 second quarter due to approximately $2.4 billion of fixed assets held for sale throughout the 2012 third quarter. Assets classified as held for sale are not subject to depreciation. (h) Defined as cash flow provided by operating activities before changes in assets and liabilities. (i) Defined as net income (loss) before income taxes, interest expense, and depreciation, depletion and amortization expense, as adjusted to remove the effects of certain items detailed on page 21. (j) Defined as net income (loss) available to common stockholders, as adjusted to remove the effects of certain items detailed on page 22. 2012 Third Quarter Average Daily Production Increases 24% Year over Year and 9% Sequentially to 4.142 Bcfe; Average Daily Liquids Production Increases 51% Year over Year and 10% Sequentially to 143,000 Bbls, or 21% of Total Production; Average Daily Oil Production Increases 96% Year over Year and 21% Sequentially to 97,800 Bbls Chesapeake’s daily production for the 2012 third quarter averaged 4.142 bcfe, an increase of 24% from the average 3.329 bcfe produced per day in the 2011 third quarter and an increase of 9% from the average 3.808 bcfe produced per day in the 2012 second quarter. Chesapeake’s average daily production of 4.142 bcfe for the 2012 third quarter consisted of approximately 3.286 billion cubic feet (bcf) of natural gas (79% on a natural gas equivalent basis) and approximately 142,675 barrels (bbls) of liquids, consisting of approximately 97,785 bbls of oil (14% on a natural gas equivalent basis) and approximately 44,890 bbls of NGL (7% on a natural gas equivalent basis) (oil and NGL collectively referred to as “liquids”).