11/21/2007 8:02 AM | Chesapeake Energy - America's Champion of Natural Gas

Chesapeake Energy Corporation Announces Final Results of Exchange Offer for Its 6.25% Mandatory Convertible Preferred Stock

11/21/2007 2:02 AM

OKLAHOMA CITY--(BUSINESS WIRE)--Nov. 21, 2007--Chesapeake Energy Corporation (NYSE: CHK) today announced the final results of its previously announced offer to exchange 8.0549 shares of its common stock for each outstanding share of its 6.25% Mandatory Convertible Preferred Stock (CUSIP No. 165167818) (the "Preferred Stock"). The exchange offer expired at 12:00 midnight, New York City Time on Tuesday November 20, 2007.

In the exchange offer, approximately 2,152,132 shares of Preferred Stock, representing approximately 94% of the outstanding shares of Preferred Stock, were validly tendered and not withdrawn as of the expiration date. Chesapeake has accepted all such shares for exchange, and the settlement and exchange of shares of Chesapeake's common stock for such validly tendered and accepted shares of Preferred Stock will be made promptly. Following settlement of the exchange offer, approximately 147,868 shares of the Preferred Stock will remain outstanding.

The exchange offer was made pursuant to an Offer to Exchange and related Letter of Transmittal, copies of which may be obtained without charge from the information agent for the exchange offer, Georgeson Inc., who may be reached at (888) 605-8334 (US toll-free). The Offer to Exchange and other related documents were also filed with the Securities and Exchange Commission on Schedule TO and copies of such documents, including any amendments thereto, may be obtained for free at the Commission's web site, http://www.sec.gov.

Chesapeake Energy Corporation is the largest independent and third-largest overall producer of natural gas in the U.S. Headquartered in Oklahoma City, the company's operations are focused on exploratory and developmental drilling and corporate and property acquisitions in the Mid-Continent, Fort Worth Barnett Shale, Fayetteville Shale, Permian Basin, Delaware Basin, South Texas, Texas Gulf Coast, Ark-La-Tex and Appalachian Basin regions of the United States.

CONTACT: Chesapeake Energy Corporation
Jeffrey L. Mobley, CFA, 405-767-4763
Senior Vice President - Investor Relations and Research
jmobley@chkenergy.com
or
Marc Rowland, 405-879-9232
Executive Vice President and Chief Financial Officer
mrowland@chkenergy.com
SOURCE: Chesapeake Energy Corporation

The information includes forward-looking statements, which are subject to known and unknown risks and uncertainties that could cause actual results to differ materially. We refer you to the discussion of risk factors that could affect future operating or financial performance in our most recent prospectus and Form 10-K and other SEC Filings. Chesapeake assumes no obligation to update any forward-looking statements made here as a result of new information or future events or developments. You will find a reconciliation of any non-GAAP financial measure, as defined by the SEC in Regulation G, to the most directly comparable GAAP number in Reconciliation of Non-GAAP Financial Measures.

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