Chesapeake Energy Corporation Announces Its Wholly Owned Subsidiary, Chesapeake Oilfield Operating, L.L.C., Has Priced a Private Placement of $650 Million of Senior Notes Due 2019
Chesapeake Energy Corporation (NYSE:CHK) today announced its wholly
owned subsidiary, Chesapeake Oilfield Operating, L.L.C. (the Company),
priced a $650 million private placement of senior notes due 2019 (the
Notes). The Notes will bear interest at a rate of 6.625% per annum. The
closing of the placement is expected to occur on October 28, 2011 and is
subject to customary closing conditions.
The Company intends to use the net proceeds from the placement to repay
an intercompany note between its direct parent, Chesapeake Oilfield
Services, L.L.C., and Chesapeake Operating, Inc., a direct subsidiary of
Chesapeake Energy Corporation.
The Notes were placed inside the U.S. to qualified institutional buyers
in reliance on Rule 144A under the Securities Act of 1933, as amended
(the Securities Act), and outside the U.S. to non-U.S. persons in
reliance on Regulation S under the Securities Act.
The Notes and the guarantees thereof have not been registered under the
Securities Act or any state securities laws and may not be offered or
sold in the United States absent registration or an applicable exemption
from registration requirements under the Securities Act and any
applicable state securities laws.
This press release is neither an offer to sell nor the solicitation of
an offer to buy the Notes or any other securities, and shall not
constitute an offer, solicitation or sale in any jurisdiction in which,
or to any persons to whom, such an offer, solicitation or sale is
unlawful.
Chesapeake Energy Corporation is the second-largest producer of
natural gas, a Top 15 producer of oil and natural gas liquids and the
most active driller of new wells in the U.S.Headquartered
in Oklahoma City, the company's operations are focused on discovering
and developing unconventional natural gas and oil fields onshore in the
U.S.Chesapeake owns leading positions in the Barnett,
Haynesville, Bossier, Marcellus and Pearsall natural gas shale plays and
in the Granite Wash, Cleveland, Tonkawa, Mississippian, Bone Spring,
Avalon, Wolfcamp, Wolfberry, Eagle Ford, Niobrara, Three Forks/Bakken
and Utica unconventional liquids plays.The company has
also vertically integrated its operations and owns substantial
midstream, compression, drilling, trucking, pressure pumping and other
oilfield service assets directly and indirectly through its subsidiaries
or affiliates Chesapeake Midstream Partners, L.P. (NYSE:CHKM),
Chesapeake Midstream Development, L.P. and Chesapeake Oilfield Services,
L.L.C.Chesapeake′s stock is listed on the New York Stock
Exchange under the symbol CHK.Further information is
available at www.chk.com
where Chesapeake routinely posts announcements, updates, events,
investor information, presentations and press releases.
This press release includes forward-looking statements that relate
to, among other things, the placement and expected closing of the Notes
and the expected use of proceeds from such placement. Forward-looking
statements give our current expectations or forecasts of future events.We caution you not to place undue reliance on our forward-looking
statements, which speak only as of the date of this release, and we
undertake no obligation to update this information.Although
we believe the expectations and forecasts reflected in these and other
forward-looking statements are reasonable, we can give no assurance they
will prove to be correct.They can be affected by
inaccurate assumptions or by known or unknown risks and uncertainties.
Chesapeake Energy Corporation
Investor Contacts:
Jeffrey L.
Mobley, CFA, 405-767-4763
jeff.mobley@chk.com
or
John
J. Kilgallon, 405-935-4441
john.kilgallon@chk.com
or
Media
Contacts:
Michael Kehs, 405-935-2560
michael.kehs@chk.com
or
Jim
Gipson, 405-935-1310
jim.gipson@chk.com
