for CHK holders

I think a lot of people are getting confused with chk's earnings report so i am going to post this explanation of chk's hedging "loss" :
Recent extreme volatility in natural gas and oil prices has created wide swings in the MTM value of Chesapeake's hedges. For example, from June 30, 2008 to July 25, 2008, the MTM value of the company's hedges moved in the company's favor by approximately $4.7 billion. Should prices on September 30, 2008 be the same as prices on July 25, 2008, substantially all of the 2008 second quarter unrealized MTM loss would be reversed and reported as a unrealized MTM gain in the 2008 third quarter. Because of such pricing volatility and in order to secure strong and predictable profit margins, Chesapeake prefers to hedge much of its exposure to natural gas and oil price swings on a rolling 24-month basis. Chesapeake's hedging agreements have been structured so that cash margin requirements are generally not required by the 22
counterparties it uses to hedge its production.
This is the best explanation i could find. I understand what is going on but don't know how to describe it better than this(I have very poor English). Hopefully this helped a little.
In conclusion: Aubery knows what he is doing. Very strong quarter for CHK