OKLAHOMA CITY, July 28 /PRNewswire-FirstCall/ -- Chesapeake Energy
Corporation (NYSE: CHK) today announced that it has priced a public offering
of 20.0 million shares of its common stock at $14.75 per share. All shares are
being sold by Chesapeake. Chesapeake has also granted the underwriters a
30-day option to purchase up to 3.0 million additional shares of its common
stock solely to cover over-allotments, if any.
Chesapeake expects the issuance and delivery of the shares to occur on
August 2, 2004, subject to satisfaction of customary closing conditions.
Chesapeake intends to use the net proceeds of the offering to finance a
portion of the pending acquisitions of Bravo Natural Resources, Inc., certain
assets from Legend Natural Gas, LP and to repay amounts outstanding under our
existing bank credit facility incurred to finance the acquisition of certain
assets from Tilford Pinson Exploration, LLC. The Bravo acquisition is expected
to close by August 2, 2004 and the Legend acquisition is expected to close
August 31, 2004. If these acquisitions do not close, excess net proceeds of
the offering will be used for general corporate purposes, including repayment
of debt or possible future acquisitions.
Bank of America Securities LLC, Credit Suisse First Boston, Lehman
Brothers Inc. and Raymond James & Associates acted as joint book-running
managers for the offering. Copies of the 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 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 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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