Chesapeake Energy 1993 Annual Report Download - page 20

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Inflation and Changes in Prices
The Company s revenue and the value of its oil and gas properties have been and will be affected by
changes in oil and gas prices The Company s ability to obtain additional capital on attractive terms is also
substantially dependent on oil and gas prices Oil and gas prices are subject to significant seasonal and other
fluctuations that are beyond the.Company's ability to control or predict. Although certain of the Company's
costs and expenses are affected by the level of inflation inflation has not had a significant effect on the
Company'.s results of operations during the past three fiscal years.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTIN9 AND FINANCIAL DISCLOSURE
Effective September 14, 1992, the Company's Board of Ditectors engaged Price Waterhouse as the
Company's principal independent accountants to replace Arthur Andersen & Co., ("Andersen"), who had
resigned as the Company's independent accountants on June 18, 1992.
Andersen had been previously engaged by the Company to audit its financial statements from inception
Prior to this time, the financial statements of the Company had not been audited and reported on. Andersen
did not complete its audit of the financial statements for any period during the term of its engagement or issue
any audit reports During the period of Andersen s engagement there was no disagreement between the
Company and Andersen on any matter of accounting principles or practices financial statement disclosure or
auditing scope or procedures, which, if not resolved to the satisfaction of Andersen would, have caused
Andersen to make reference to the subject matter of the disagreement in connection with its report. Andersen
has indicated that in addition there was a difference of opinion between Andersen and the Company as to
whether the Company would be able to continue to operate as a going concern considering its capitalization
and financial resources at the time:
10