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OKLAHOMA CITY, Sept 08, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- Chesapeake Energy
Corporation (NYSE: CHK) today announced that it has priced a public offering
of 8.0 million shares of its common stock at $32.72 per share. All shares are
being sold by Chesapeake. Chesapeake also has granted the underwriters a
30-day option to purchase up to 1.2 million additional shares of its common
stock solely to cover over-allotments, if any. The offering is being made
under the company's existing shelf registration statement.
Chesapeake expects the issuance and delivery of the shares to occur on
September 14, 2005, subject to satisfaction of customary closing conditions.
Chesapeake intends to use the net proceeds of the offering, together with the
proceeds from a concurrent offering of preferred stock, to repay debt under
its bank credit facility and for general corporate purposes.
Lehman Brothers, Banc of America Securities LLC, Credit Suisse First
Boston, Deutsche Bank Securities and Raymond James acted as joint book-running
managers for the offering. Copies of the prospectus supplement and
accompanying base prospectus relating to the offering may be obtained from the
offices of Lehman Brothers Inc., c/o ADP Financial Services, Integrated
Distribution Services, 1155 Long Island Avenue, Edgewood, NY 11717; Banc of
America Securities LLC, Attn: Prospectus Department, 100 West 33rd Street,
New York, NY 10001, 646-733-4166; Credit Suisse First Boston, One Madison
Avenue, Level 1B, New York, NY 10010, 212-325-2580; Deutsche Bank Securities,
Attn: Prospectus Department 1290 Avenue of Americas, New York, NY 10019, fax
212-468-5333; Raymond James & Associates, 880 Carillon Parkway, St.
Petersburg, FL 33716, 727-567-2400. An electronic copy of the prospectus
supplement and accompanying base prospectus will be available on the website
of the Securities and Exchange Commission at http://www.sec.gov .
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
securities in any state in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any state.
This document contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements include estimates and give
our current expectations or forecasts of future events. Although we believe
our forward-looking statements are reasonable, they can be affected by
inaccurate assumptions or by known or unknown risks and uncertainties.
Chesapeake Energy Corporation is the third largest independent producer of
natural gas in the U.S. Headquartered in Oklahoma City, the company's
operations are focused on exploratory and developmental drilling and producing
property acquisitions in the Mid-Continent, Permian Basin, South Texas, Texas
Gulf Coast, Barnett Shale and Ark-La-Tex regions of the United States.
SOURCE Chesapeake Energy Corporation
Jeffrey L. Mobley, CFA, Vice President - Investor Relations and Research,
+1-405-767-4763, or jmobley@chkenergy.com , or Marc Rowland, executive vice president
and chief financial officer, +1-405-879-9232, or mrowland@chkenergy.com , both of
Chesapeake Energy Corporation