OKLAHOMA CITY, July 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 of the offering, together with proceeds from a concurrent
offering of senior notes, to fund its recently announced $590 million of
pending acquisitions of Bravo Natural Resources, Inc. and Legend Natural Gas,
L.P., along with the completed acquisition of Tilford Pinson Exploration, Inc.
The Bravo acquisition is expected to close August 2, 2004, and the Legend
acquisition is expected to close August 31, 2004. Both acquisitions are
subject to satisfaction of customary closing conditions. If one or both of
these acquisitions do not close, excess net proceeds from the offering will be
used for general corporate purposes, including repayment of debt or possible
future acquisitions.
The offering will be made under the company's existing shelf registration
statement. The company intends to grant the underwriters an option to
purchase a maximum of three million additional shares of its common stock to
cover over-allotments.
Bank of America Securities LLC, Credit Suisse First Boston, Lehman
Brothers and Raymond James will be joint book-running managers for the
offering. Copies of the preliminary prospectus and records relating to the
offering may be obtained from the offices of Bank 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; Lehman Brothers Inc., c/o ADP Financial
Services, Integrated Distribution Services, 1155 Long Island Avenue, Edgewood,
NY 11717, 631-254-7106; Raymond James & Associates, 880 Carillon Parkway, St.
Petersburg, FL 33716, 727-567-2400.
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 give our current expectation
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 one of the five largest independent
natural gas producers in the United States. 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, Gulf Coast and Ark-La-Tex regions onshore in 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
Company News On-Call:
http://www.prnewswire.com/comp/138877.html
CONTACT:
Marc Rowland, Executive Vice President and
Chief Financial Officer, +1-405-879-9232, or Tom Price, Jr.,
Senior Vice President, Investor Relations, +1-405-879-9257, both
of Chesapeake Energy Corporation
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