Chesapeake Energy 1998 Annual Report Download - page 81

distribution of the Company's revenue, operating income and identifiable assets are summarized below (S in
thousands):
9. Stockholders' Equity And Stock Based Compensation
During 1998, the Company's Board of Directors approved the expenditure of up to $30 million to purchase
outstanding Company common stock. As of August 25, 1998, the Company had purchased approximately 8.5
million shares of common stock for an aggregate amount of $30 million pursuant to such authorization.
On April 28, 1998, the Company acquired by merger the Mid-Continent operations of DLB Oil & Gas, Inc.
("DLB") for $17.5 million in cash, 5 million shares of the Company's common stock, and the assumption of $90
million in outstanding debt and working capital obligations.
On April 22, 1998, the Company issued $230 million (4.6 million shares) of its 7% Cumulative Convertible
Preferred Stock, $50 per share liquidation preference, resulting in net proceeds to the Company of $223 million
On March 10, 1998, the Company acquired Hugoton Energy Corporation ("Hugoton") pursuant to a merger by
issuing approximately 25.8 million shares of the Company's common stock in exchange for 100% of Hugoton's
common stock.
On December 16, 1997, the Company acquired AnSon Production Corporation. Consideration for this merger
was approximately $43 million consisting of the issuance of approximately 3.8 million shares of Company common
stock and cash consideration in accordance with the terms of the merger agreement.
On December 2, 1996, the Company completed a public offering of approximately 9 0 million shares of
common stock at a price of $33.63 per share, resulting in net proceeds to the Company of approximately $288.1
million
On April 12, 1996, the Company completed a public offering of approximately 6 0 million shares ofcommon
stock at a price of $17.67 per share, resulting in net proceeds to the Company of approximately $99.4 million
A 2-for- 1 stock split of the common stock in December 1996, and a 3-for-2 stock split of the common stock in
December 1995 and in June 1996 have been given retroactive effect in these financial statements.
Stock Option Plans
Under the Company's 1992 Incentive Stock Option Plan (the "ISO Plan"), options to purchase common stock
may be granted only to employees of the Company and its subsidiaries. Subject to any adjustment as provided by
the ISO Plan, the aggregate number of shares which may be issued and sold may not exceed 3,762,000 shares. The
maximum period for exercise of an option may not be more than 10 years (or five years for an optionee who owns
more than 10% of the common stock) from the date of grant, and the exercise price may not be less than the fair
market value of the shares underlying the options on the date of grant (or 110% of such value for an optionee who
owns more than 10% of the common stock). Options granted become exercisable at dates determined by the Stock
Option Committee of the Board of Directors. No options could be granted under the ISO Plan after December 16,
1994.
61
United
States Canada Consolidated
1998:
Revenue $ 369,968 $7,978 S 377,946
Operating income (loss) (842,798) (13,399) (856,197)
Identifiable assets 724,713 87,902 812,615