OKLAHOMA CITY--(BUSINESS WIRE)--Mar. 16, 2009--
Chesapeake Energy Corporation (NYSE:CHK) today announced that it will
convert all of its outstanding 4.125% Cumulative Convertible Preferred
Stock, par value $0.01 per share, into Chesapeake Energy Corporation
Common Stock, par value $0.01 per share, on March 31, 2009 (the
On the Conversion Date, the 4.125% Cumulative Convertible Preferred
Stock will be automatically converted into a number of shares equal to
$1,000 divided by the lesser of the conversion price then in effect
(anticipated to be $16.5840) and the average of the closing prices of
our common stock for the five trading days ending on March 27, 2009.
Dividends on the preferred stock will cease to accrue on the Conversion
Date. Cash will be paid in lieu of fractional shares of common stock. No
payment or adjustment will be made upon conversion of the preferred
stock for accrued dividends with respect to the preferred stock or for
dividends with respect to the common stock issued upon conversion. There
are currently 3,033 shares of the preferred stock outstanding.
From and after March 31, 2009, the preferred stock remaining outstanding
will be deemed to be no longer outstanding and all rights of the holders
with respect to such preferred stock will terminate, except the right to
receive the whole shares of common stock issuable upon conversion and
cash in lieu of any fractional shares, as described above.
A Notice of Conversion will be mailed to shareholders of record of the
preferred stock as of the close of business on March 16, 2009. The
Conversion Agent is Computershare Investor Services, LLC, 3948 Legacy
Drive, Suite 106 PMB 307, Plano, TX 75023, (800) 884-4225.
Chesapeake Energy Corporation is the 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 corporate and property acquisitions in the Barnett Shale,
Haynesville Shale, Fayetteville Shale, Marcellus Shale, Anadarko Basin,
Arkoma Basin, Appalachian Basin, Permian Basin, Delaware Basin, South
Texas, Texas Gulf Coast and East Texas regions of the United States. Further
information is available at www.chk.com.
Source: Chesapeake Energy Corporation
Chesapeake Energy Corporation
L. Mobley, CFA, 405-767-4763
Senior Vice President - Investor
Relations and Research
Jim Gipson, 405-935-1310
Director – Media