8-KOther EventsExhibits & Filings

EXPAND ENERGY Corp 8-K Report, Corporate Update (Apr 21, 2006)

Filed April 21, 2006For Securities:EXEEXEELEXEEWEXEEZ

Summary

This 8-K filing from Chesapeake Energy Corporation (which incorrectly states the registrant as EXPAND ENERGY Corp in the prompt) reports on the completion of their acquisition of Columbia Energy Resources, LLC and its subsidiaries for $2.2 billion in cash. The acquisition, which closed on November 14, 2005, significantly expands Chesapeake's asset base, particularly in the Appalachian Basin across West Virginia, Kentucky, Ohio, Pennsylvania, and New York. As a follow-up to the transaction, Chesapeake is filing unaudited pro forma condensed combined financial statements for the year ended December 31, 2005. These pro forma statements offer investors a view of the combined entity's financial performance as if the acquisition had occurred at the beginning of the reporting period, providing a clearer picture of the post-acquisition operational scale and financial impact.

Key Highlights

  • 1Chesapeake Energy Corporation completed the acquisition of Columbia Energy Resources, LLC and related subsidiaries on November 14, 2005.
  • 2The purchase price for the acquisition was $2.2 billion in cash.
  • 3The acquired assets are primarily located in the Appalachian Basin, spanning West Virginia, Kentucky, Ohio, Pennsylvania, and New York.
  • 4This filing includes unaudited pro forma condensed combined financial statements for the year ended December 31, 2005.
  • 5The pro forma statements present the combined financial performance of Chesapeake and Columbia.
  • 6The earliest event date reported is November 14, 2005, with the report filed on April 21, 2006.

Frequently Asked Questions

The main purpose of this 8-K filing is to report the completion of Chesapeake Energy Corporation's acquisition of Columbia Energy Resources, LLC and its subsidiaries, and to file the unaudited pro forma condensed combined financial statements for the year ended December 31, 2005, reflecting the impact of this acquisition.

The acquisition cost $2.2 billion in cash. The filing includes pro forma financial statements for the year ended December 31, 2005, which would provide investors insight into the combined company's revenue, expenses, and profitability as if the acquisition had occurred prior to that period.

The acquired properties and assets from Columbia Energy Resources are principally located in the Appalachian Basin, specifically in West Virginia, Kentucky, Ohio, Pennsylvania, and New York.

The acquisition closed on November 14, 2005. The unaudited pro forma condensed combined financial statements provided in Exhibit 99.1 are for the year ended December 31, 2005.