OKLAHOMA CITY--(BUSINESS WIRE)--May. 25, 2012--
Chesapeake Energy Corporation (NYSE: CHK) today issued the following
statement regarding the Schedule 13D filed late today by affiliates of
Carl Icahn with the Securities and Exchange Commission disclosing
ownership of approximately 7.56% of Chesapeake’s common stock:
“We share Mr. Icahn’s belief that Chesapeake shares are substantially
undervalued by the market today. The Board and senior management are
executing a plan that we believe will deliver a higher stock price and
better recognize the underlying value of the company’s assets. The Board
will carefully review Mr. Icahn’s letter. The Board’s immediate priority
is to name an independent Non-Executive Chairman and it is proceeding
expeditiously toward that objective having consulted with shareholders.
After an independent Chairman is named, the Board’s Nominating Committee
will consult with shareholders and carefully review Mr. Icahn’s request
for Board representation.
“Chesapeake has built a premier collection of U.S. E&P assets and we are
focused on developing the core plays in which we have a #1 or #2
position, continuing the transition from natural gas to liquids-focused
production, reducing capital expenditures and paying down long-term
debt. We believe successful execution of these initiatives will close
the large gap between our current enterprise value and the total value
of our premier assets.”
Chesapeake Energy Corporation (NYSE:CHK) is the second-largest
producer of natural gas, a Top 15 producer of oil and natural gas
liquids and the most active driller of new wells in the U.S. Headquartered
in Oklahoma City, the company's operations are focused on discovering
and developing unconventional natural gas and oil fields onshore in the
U.S. Chesapeake owns leading positions in the Marcellus,
Haynesville, Bossier, and Barnett natural gas shale plays and in the
Eagle Ford, Utica, Mississippi Lime, Granite Wash, Cleveland, Tonkawa,
Niobrara, Bone Spring, Avalon, Wolfcamp and Wolfberry unconventional
liquids plays. The company has also vertically integrated
its operations and owns substantial marketing, midstream and oilfield
services businesses directly and indirectly through its subsidiaries
Chesapeake Energy Marketing Inc., Chesapeake Midstream Development, L.P.
and Chesapeake Oilfield Services, L.L.C. and its affiliate Chesapeake
Midstream Partners, L.P. (NYSE:CHKM). Further information
is available at www.chk.com
where Chesapeake routinely posts announcements, updates, events,
investor information, presentations and news releases.
This news release includes "forward-looking statements" that give
Chesapeake's current expectations or forecasts of future events.
Although we believe the expectations and forecasts reflected in our
forward-looking statements are reasonable, we can give no assurance they
will prove to have been correct. They can be affected by inaccurate
assumptions or by known or unknown risks and uncertainties, and actual
results may differ from the expectation expressed. We caution you not to
place undue reliance on our forward-looking statements, which speak only
as of the date of this news release, and we undertake no obligation to
update this information.
Additional Information and Where to Find It
On May 11, 2012, the company filed a definitive proxy statement
with the Securities and Exchange Commission in connection with its 2012
annual meeting of shareholders. INVESTORS ARE URGED TO
READ THE DEFINITIVE PROXY STATEMENT, WHICH CONTAINS IMPORTANT
INFORMATION. You may obtain the definitive proxy statement as well as
other relevant documents, free of charge, at the website maintained by
the SEC at www.sec.gov.
Copies of the proxy statement and other filings made by the company with
the SEC can also be obtained, free of charge, at www.chk.com.
Source: Chesapeake Energy Corporation
Chesapeake Energy Corporation
Jeffrey L. Mobley, CFA, 405-767-4763
J. Kilgallon, 405-935-4441
Michael Kehs, 405-935-2560