Chesapeake Energy 1998 Annual Report Download - page 62

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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
The accompanying notes are an integral part of these consolidated fmancial statements.
42
CASH FLOWS FROM OPERATING ACTIVITIES:
Year Ended
December 31,
1998
Six Months Ended
December 31,
1997 Year Ended June 30,
1997 1996
($ in thousands)
NET INCOME (LOSS) $(933,854) $(31,574) $(183,377) $23,355
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO
CASH PROVIDED BY OPERATING ACTIVITIES:
Depreciation, depletion and amortization 152,204 62,028 105,591 52,768
Impairment of oil and gas assets 826,000 110,000 236,000
Impairment of other assets 55,000
Deferred taxes --(3,573) 12,854
Amortization of loan costs 2,516 794 1,455 1,288
Amortization of bond discount 98 41 217 563
Baddebtexpense 1,589 40 299 114
Gain on sale of Bayard stock -(73,840)
Gain on sale of fixed assets (90) (209) (1,593) (2,511)
Extraordinary loss 13,334 6,620
Equity in (earnings) losses from investments 703 592 (499)
Cash provided by operating activities before changes in current
assets and liabilities 117,500 67,872 161,140 88,431
CHANGES IN ASSETS AND LIABILITIES:
(Increase) decrease in short-term investments 12,027 92,127 (102,858) 622
(Increase) decrease in accounts receivable 12,191 (7,173) (19,987) (3,524)
(Increase) decrease in inventory 168 (1,584) (1,467) 78
(Increase) decrease in other current assets 7,637 (1,519) 1,466 (1,525)
Increase (decrease) in accounts payable, accrued
liabilities and other (46,785) (11,044) 48,085 25,834
Increase (decrease) in current and non-current revenues
and royalties due others (8,099) 478 (2,290) 11,056
Changes in assets and liabilities (22,861) 71,285 (77,051) 32,541
Cash provided by operating activities 94,639 139,157 84,089 120,972
CASH FLOWS FROM INVESTING ACTIVITIES:
Exploration and development of oil and gas properties (260,006) (189,755) (468,462) (342,045)
Acquisitions of oil and gas companies and properties, net of cash acquired (279,924)
Investment in preferred stock of Gothic Energy Corporation (39,500) -
Proceeds from sale of oil and gas equipment, leasehold and other 16,008 2,503 3,095 6,167
Net proceeds from sale of Bayard stock -90,380
Repayment of note receivable 2,000 18,000
Proceeds from sale of investment in PanEast 21,245 -
Otherproceeds from sales 3,600 17 6,428 698
Long-term loans made to third parties (20,000)
Investment in oil field service company (200) (3,048)
Investment in gas marketing company, net of cash acquired -(363)
Other investments (30,434) (8,000)
Other property and equipment additions (11,473) (27,015) (33,867) (8,846)
Cash used in investing activities (548,050) (136,504) (523,854) (344,389)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock 288,091 99,498
Proceeds from long-term borrowings 658,750 342,626 166,667
Payments on long-term borrowings (474,166) (119,581) (48,634)
Dividends paid on common stock (5,592) (2,810)
Dividends paid on preferred stock (8,050)
Proceeds from issuance of preferred stock 222,663
Purchase of treasury stock (29,962)
Cash received from exercise of stock options 322 1,387 1,989
Other financing 154 (322) (379)
Cash provided by (used in) financing activities 363,797 (2,810) 512,144 219,520
EFFECT OF EXCHANGE RATE CHANGES ON CASH (4,726)
Net increase (decrease) in cash and cash equivalents (94,340) (157) 72,379 (3,897)
Cash and cash equivalents, beginning of period 123,860 124,017 51,638 55,535
Cash and cash equivalents, end of period $29,520 $123,860 $124,017 $51,638