Chesapeake Energy 2000 Annual Report Download - page 110

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9. Related Party Transactions
During 1997, Gothic made advances totaling $336,000 to two officers and directors of Gothic. In Febru-
ary 1998, $168,000 was received in connection with a severance agreement. The balance outstanding on the
remaining advance was $179,000 as of December 31, 1998. This amount was forgiven by Gothic during 1999.
During 2000, Gothic made advances to directors, officers and employees totaling $1.7 million for the exercise of
options to purchase Gothic common stock. These amounts were settled in connection with the Merger on
January 16, 2001.
10. Selected Quarterly Financial Information (Unaudited)
Summarized quarterly financial information for 1999 and 2000 is as follows:
Gross profit includes total revenues, less lease operating expenses and depletion, depreciation and amortization expense.
As a result of shares issued during the year, earnings per share for the year's four quarters, which is based on average shares outstanding
during each quarter, does not equal the annual earnings per share, which is based on the average shares outstanding during the year.
11. Supplementary Natural Gas and Oil Information
The following supplemental historical and reserve information is presented in accordance with Financial
Accounting Standards Board Statement No. 69, "Disclosures About Oil and Gas Producing Activities".
Financial Data
Capitalized Costs
The aggregate amounts of capitalized costs relating to natural gas and oil producing activities, net of valuation
allowances, and the aggregate amounts of the related accumulated depreciation, depletion, and amortization at
December 31, 1999 and 2000 were as follows:
-99-
Three Months Ended
March 31 June 30 September 30 December 31
(S in thousands, except per share data)
Year Ended December 31, 1999:
Revenues $11,470 $13,206 $14,150 $16,798
Gross profit(1) $3,846 $ 5,577 $ 6,217 $ 9,410
Net loss $(5,621) $(4,850) $(4,296) $(2,542)
Loss per common share: (2)
Basic $ (0.47) $ (0.43) $ (0.37) $ (0.26)
Diluted $ (0.47) $ (0.43) $ (0.37) $ (0.26)
Year Ended December 31, 2000:
Revenues $15,559 $17,660 $21,904 $30,622
Gross profit(l) $ 8,334 $10,467 $12,920 $19,603
Net income (loss) $(2,883) $(517) $ 1,325 $ 8,157
Earnings (loss) per common share: (2)
Basic $ (0.2$) $ (0.15) $ (0.05) $0.24
Diluted $ (0.28) $ (0.15) $ (0.05) $0.24
1999 2000
($ in thousands)
Proved properties $258,818 $275,827
Unproved, not subject to depreciation, depletion and amortization 5,473 6,191
Less accumulated depreciation, depletion, and amortization (53,137) (75,003)
Net natural gas and oil properties $211,154 $207,015