Summary
This 8-K filing from Chesapeake Energy Corporation (CHK) on December 6, 2002, announces a proposed public offering of 20 million shares of common stock. The company anticipates pricing this offering during the week of December 9, 2002. The primary intended use of the net proceeds is to partially finance the recently announced acquisition of Mid-Continent natural gas properties from ONEOK, Inc., which is expected to close in January 2003. In the event the ONEOK acquisition does not proceed, the funds will be allocated to general corporate purposes, which may include future acquisitions. This offering positions Chesapeake Energy to strengthen its balance sheet and pursue strategic growth opportunities, particularly in the Mid-Continent region where it is a significant independent natural gas producer.
Key Highlights
- 1Chesapeake Energy announced a proposed public offering of 20 million shares of common stock.
- 2The offering is expected to be priced during the week of December 9, 2002.
- 3Proceeds will be used to partially finance the acquisition of Mid-Continent natural gas properties from ONEOK, Inc.
- 4The ONEOK acquisition is scheduled to close in January 2003.
- 5If the ONEOK acquisition is not completed, proceeds will be used for general corporate purposes, including potential future acquisitions.
- 6Credit Suisse First Boston, Morgan Stanley, and Salomon Smith Barney are joint book-running managers for the offering.
- 7Chesapeake Energy is identified as one of the 10 largest independent natural gas producers in the U.S.