OKLAHOMA CITY, JUNE 26 /PRNewswire-FirstCall/ -- Chesapeake Energy
Corporation (NYSE: CHK) today announced that it intends to commence a
public offering of 20 million shares of its common stock. Chesapeake
intends to use the net proceeds from the offering, together with proceeds
from concurrent public offerings of senior notes and mandatory convertible
preferred stock, to fund its recently announced Barnett Shale acquisitions
for $932 million, to repay outstanding indebtedness under its revolving
credit facility and for general corporate purposes.
The offering will be made under a shelf registration statement that
became effective on December 8, 2005. The company intends to grant
underwriters a 30-day option to purchase a maximum of three million
additional shares of its common stock.
Goldman, Sachs & Co., Banc of America Securities LLC, Bear, Stearns &
Co. Inc., Lehman Brothers Inc. and Raymond James & Associates will act as
joint book-running managers for the offering. The offering is being made
only by means of a prospectus and related prospectus supplement, copies of
which may be obtained from Goldman, Sachs & Co., Attn: Prospectus Dept., 85
Broad Street, New York, NY 10004, Fax: 212 902 9316 or email at
prospectus-ny@ny.email.gs.com; Banc of America Securities LLC, Attn:
Prospectus Department, 100 West 33rd Street, New York, NY 10001,
646-733-4166; Bear, Stearns & Co. Inc., Attn: Prospectus Department, 383
Madison Avenue, New York, NY 10179, (631) 274-8321; Lehman Brothers Inc.,
c/o ADP Financial Services, Integrated Distribution Services, 1155 Long
Island Avenue, Edgewood, NY 11717; Raymond James & Associates, 880 Carillon
Parkway, St. Petersburg, FL 33716, 727-567-2400. An electronic copy of the
prospectus and prospectus supplement is available from the Securities and
Exchange Commission's website 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 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 and Senior Vice
President of Investor Relations And Research, +1-405-767-4763,
jmobley@chkenergy.com, or Marc Rowland, Executive Vice President
And Chief Financial Officer, +1-405-879-9232,
mrowland@chkenergy.com, both of Chesapeake Energy Corporation
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