Chesapeake Energy 1995 Annual Report Download - page 49

Management believes that the loss of any of the above
customers would not have a material impact on the
Company's results of operations or its financial position.
STOCKHOLDERS' EQUITY
On March 31, 1994, the Company issued 12% Senior
Notes and Warrants for 973,750 shares of the Company's
Common Stock (see Note 2). The Warrants were valued at
$3.04 million and are recorded as Common Stock Warrants
and paid-in capital on the June 30, 1994 consolidated
balance sheet. As part of the 12% Senior Note offering, the
Company issued 8,000 Units to TCW in exchange for
preferred stock, warrants to purchase Common Stock and
an overriding royalty interest.
In February 1993, the Company completed an initial
public offering of 4.6 million shares of its Common Stock
at $6 per share. The total proceeds were $27.6 million with
total net proceeds of approximately $25.2 million, of which
$12.8 million was used to reduce indebtedness, and the
balance was used to fund operations and as working capital.
On December 4, 1992, the Company issued to TCW
576,923 shares of its convertible preferred stock in
exchange for a $7.5 million reduction in the Company's
debt to TCW. Pro forma per share data asstlming full
conversion of the convertible preferred stock to common
shares is nor provided herein as the results are antidilutive.
The convertible preferred stock was acquired by the
Company in connection with the issuance of the 12%
Senior Notes (see Note 2) and has been retired.
In connection with an amendment to acredit
agreement with TCW on July 2, 1992, the Company issued
to TCW a stock warrant granting TCW the right to
purchase up to 624,002 shares of Common Stock at a price
of $2.09 per share. The warrant was acquired by the
Company in connection with the issuance of the 12%
Senior Notes (see Note 2).
As part of a loan transaction with Belco (see Note 3).
Belco received warrants to purchase a maximum of 360,000
shares of Common Stock at an exercise price of $4.80 per
share. All such warrants have been exercised.
A 1.8-for-i stock split of the Common Stock in January
1993 and a 2-for-i stock split of the Common Stock in
December 1994 have been given retroactive effect in these
financial statements.
STOCK OPTION PLANS
Under the Company's 1992 Incentive Stock Option Plan
(the "ISO Plan"), options to purchase Common Stock may
be granted only to employees of the Company and its
subsidiaries. Subject to any adjustment as provided by the
ISO Plan, the aggregate number of shares which may be
issued and sold may not exceed 836,000 shares. The
maximum period for exercise of an option shall not be more
than ten years (or five years for an optionee who owns more
than 10% of the Common Stock) from the date of grant,
and the exercise price may not be less than the fair market
value of the shares underlying the options on the date of
grant (or 110% of such value for an optionee who owns
more than 10% of the Common Stock). Options granted
become exercisable at dates determined by the Stock
YEAR AMOUNT
PERCENT OF
OIL AND
GAS SALES
($ IN THOUSANDS)
1995 Aquila Southwest Pipeline
Corporation $18,548 33%
Wickford Energy Marketing $15,704 28%
GPM Gas Corporation $11,686 21%
1994 Wickford Energy
Marketing, L.C. $ 6,190 28%
GPM Gas Corporation $ 6,105 27%
Plains Marketing and
Transportation, Inc. $ 2,659 12%
Texaco Exploration
& Production, Inc. $ 2,249 10%
1993 Plains Marketing and
Transportation, Inc. $ 2,579 22%
GPM Gas Corporation $ 2,039 18%
Mobil Oil Corporation $1,775 15%
Total Petroleum, Inc. $1,380 12%
Texaco Exploration
& Production, Inc. $1,368 12%
CHESAPEAKE ENERGY CORPORATION 47
MAJOR CUSTOMERS
Sales to individual customers constituting 10% or more of
total oil and gas sales were as follows: