Chesapeake has hedged 81% of their remaining 2008 production and 54% of their
2009 production.

im iin the house of pain with CHK, just stayin long, but this is a good entry
point in my mind

They said they are expecting an UNREALIZED loss due to hedging activities. They
had the same thing last quarter, but the estimates do not include that. Someone
correct me if I'm wrong, but it almost seems like these unrealized losses due to
hedging are the amount they "could have made" if they wouldn't have hedged. For
example, if natural gas averaged $11 over the quarter and they sold their's for
$8, the unrealized loss would be the difference ($3) x the amount they sold.
They still make money selling it at $8, but they could've made more selling it
at $11.
Also, I think it was the opposite for them last year. They were selling above
market value.
Not really sure why they include it. It just makes it more confusing.

All the hedging does is keep the price constant...so they lose money on the
hedging when prices are unusually high...and make money on it when the spot
price is low. They keep the price at around $8. The earnings before hedging is
what the street is concerned about....and that number should be good.