Chesapeake Energy 1998 Annual Report Download - page 40

Download and view the complete annual report

Please find page 40 of the 1998 Chesapeake Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 105

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105

PART II.
ITEM 5. Market for Registrant's Common Equity and Related Stockholder Mailers
Price Range of Common Stock
The common stock trades on the New York Stock Exchange under the symbol "CHK". The following table sets
forth, for the periods indicated, the high and low sales prices per share (adjusted for a 2-for-i stock split on
December 31, 1996) of the common stock as reported by the New York Stock Exchange:
20
At March 26, 1999 there were 1,025 holders of record of common stock and approximately 28,000 beneficial
owners.
Dividends
The Company paid quarterly dividends of $0.02 per common share from July 1997 to July 1998. In September
1998 the Board of Directors determined that because of low oil and natural gs prices the payment of cash dividends
on the common stock should be cancelled. The payment of future cash dividends, if any, will be reviewed
periodically by the Board of Directors and will depend upon, among other things, the Company's fmancial
condition, funds from operations, the level of its capital and development expenditures, its future business prospects
and any contractual restrictions.
Two of the indentures governing the Company's outstanding senior notes contain restrictions on the Company's
ability to declare and pay dividends. Under these indentures, the Company may not pay any cash dividends on its
common or preferred stock if (i) a default or an event of default has occurred and is continuing at the time of or
immediately after giving effect to the dividend payment, (ii) the Company would not be able to incur at least $1 of
additional indebtedness under the terms of the indentures, or (iii) immediately after giving effect to the dividend
payment, the aggregate of all dividends and other restricted payments declared or made after the respective issue
dates of the notes exceeds the sum of specified income, proceeds from the issuance of stock and debt by the
Company and other aniounts from the quarter in which the respective note issuances occurred to the quarter
immediately preceding the date of the dividend payment. As of December 31, 1998, the Company did not meet the
debt incurrence or the restricted payment tests under these indentures.
Fiscal yearended June 30, 1997:
Common Stock
High Low
First Quarter $34.00 $ 21.00
Second Quarter 34.13 25.69
Third Quarter 31.50 19.88
Fourth Quarter 22.38 9.25
Transition Period ended December 31, 1997:
First Quarter 11.50 6.31
Second Quarter 13.44 6.81
Fiscal year ended December 31, 1998:
First Quarter 7.75 5.50
Second Quarter 6.00 3.88
Third Quarter 4.06 1.13
Fourth Quarter 2.63 0.75