OKLAHOMA CITY, March 17 /PRNewswire-FirstCall/ -- Chesapeake Energy
Corporation (NYSE: CHK) today announced that it will convert all of its
outstanding 6.00% Cumulative Convertible Preferred Stock, par value $0.01 per
share, into Chesapeake Energy Corporation Common Stock, par value $0.01 per
share, on March 20, 2006 (the "Conversion Date").
On the Conversion Date, 4.8605 shares of common stock will be issued upon
conversion of each share of 6.00% preferred stock and dividends on the
preferred stock will cease to accrue. 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 99,110 shares of preferred stock outstanding.
From and after March 20, 2006, the preferred stock not previously
converted 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 has been mailed to shareholders of record of the
preferred stock as of the close of business on March 15, 2006. The Conversion
Agent is UMB Bank, N.A., 928 Grand Boulevard, 13th Floor, Kansas City,
Missouri, 64106, telephone (816) 860-7411.
Chesapeake Energy Corporation is the second 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 Mid-Continent, Permian Basin, South Texas,
Texas Gulf Coast, Barnett Shale, Ark-La-Tex and Appalachian Basin regions of
the United States. The company's Internet address is
http://www.chkenergy.com .
SOURCE Chesapeake Energy Corporation
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Related links:
http://www.chkenergy.com
CONTACT:
Jeffrey L. Mobley, CFA, Senior 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
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