Chesapeake Energy 1998 Annual Report Download - page 95

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13, Quarterly Financial Data (unaudited)
Summarized unaudited quarterly financial data for 1998, the six months ended December 31, 1997 and fiscal
1997 are as follows ($ in thousands except per share data):
Quarter Ended
75
March 31, June 30, September 30, December 31,
1998 1998 1998 1998
Net sales $ 76,765 $109,310 $106,338 $85,533
Gross profit (loss) (246,036) (218,645) 13,650 (405,166)
Net income (loss) before extraordinary item (256,500) (234,739) (4,149) (425,132)
Net income (loss) (256,500) (248,073) (4,149) (425,132)
Income (loss) per share before extraordinary item:
Basic (3.19) (2.29) (0.08) (4.44)
Diluted (3.19) (2.29) (0.08) (4.44)
Ouarter Ended
September 30, December 31,
1997 1997
Net sales $ 72,532 $ 81,366
Gross profit (loss) 8,210 (101,302)
Net Income (loss) 5,513 (37,087)
Net Income (loss) per share before extraordinary item:
Basic .08 (.52)
Diluted .08 (.52)
Quarter Ended
September 30, December 31, March 31, June 30,
1996 1996 1997 1997
Net sales $ 48,937 $ 71,249 $ 79,809 $69,097
Gross profit (loss) 14,889 28,057 25,737 (241,686)
Income (loss) before extraordinary item 8,204 16,717 16,105 (217,783)
Net income (loss) 8,204 10,274 15,928 (217,783)
Income (loss) per share before extraordinary item:
Basic .14 .26 .23 (3.12)
Diluted .13 .25 .22 (3.12)
(a) Total revenue excluding interest and other income, less total costs and expenses excluding interest and other expense.
Capitalized costs, less accumulated amortization and related deferred income taxes, cannot exceed an amount
equal to the sum of the present value of estimated future net revenues less estimated future expenditures to be
incurred in developing and producing the proved reserves, less any related income tax effects. At December 31,
1998, June 30, 1998, March 31, 1998, December 31, 1997 and June 30, 1997, capitalized costs of oil and gas
properties exceeded the estimated present value of future net revenues for the Company's proved reserves, net of
related income tax considerations, resulting in writedowns in the carrying value of oil and gas properties of $360
million, $216 million, $250 million, $110 million and $236 million, respectively.
During the fourth quarter of 1998, the Company incurred a $55 million impairment charge to adjust certain non-
oil and gas assets to their estimated fair values. Of this amount, $30 million related to the Company's investment in
preferred stock of Gothic Energy Corporation, and the remainder was related to certain of the Company's gas
processing and transportation assets located in Louisiana.
14. Acquisitions
During 1998, the Company acquired approximately 750 Bcfe of proved reserves through merger or through
purchases of oil and gas properties. The total consideration given for the acquisitions was $280 million of cash,