Chesapeake Energy 1999 Annual Report Download - page 30

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PART II
ITEM 5. Market for Registrant's Common Equity and Related Stockholder Matters
Price Range of Common Stock
The common stock trades on the New York Stock Exchange under the symbol "CHK". The following table sets
forth, for the periods indicated, the high and low sales prices per share of the common stock as reported by the New
York Stock Exchange:
-20-
At March 17, 2000 there were 1,105 holders of record of common stock and approximately 22,500 beneficial
owners.
Dividends
The Company paid quarterly dividends of $0.02 per common share from July 1997 to July 1998. In September
1998 the Board of Directors determined that because of low oil and natural gas prices the payment of cash dividends
on the common stock should be cancelled. The payment of future cash dividends, if any, will be reviewed
periodically by the Board of Directors and will depend upon, among other things, the Company's financial condition,
funds from operations, the level of its capital and development expenditures, its future business prospects and any
contractual restrictions.
Two of the indentures governing the Company's outstanding senior notes contain restrictions on the Company's
ability to declare and pay dividends. Under these indentures, the Company may not pay any cash dividends on its
common or preferred stock if (i) a default or an event of default has occurred and is continuing at the time of or
immediately after giving effect to the dividend payment, (ii) the Company would not be able to incur at least $1 of
additional indebtedness under the terms of the indentures, or (iii) immediately after giving effect to the dividend
payment, the aggregate of all dividends and other restricted payments declared or made after the respective issue
dates of the notes exceeds the sum of specified income, proceeds from the issuance of stock and debt by the
Company and other amounts from the quarter in which the respective note issuances occurred to the quarter
immediately preceding the date of the dividend payment. From December 31, 1998 through December 31, 1999, the
Company did not meet the debt incurrence tests under these indentures and was not able to pay dividends on its
preferred stock.
Subsequent to December 31, 1999, the Company entered into a number of unsolicited transactions whereby the
Company issued approximately 8.8 million shares of the Company's common shares in exchange for 625,000 shares
of the Company's preferred stock. This reduced the liquidation amount of preferred stock outstanding by $31.3
million to $198.7 million, and reduced the amount of preferred dividends in arrears by $2.9 million to $19.3 million
as of February 29, 2000.
Common Stock
High Low
Year ended December31, 1998:
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
6.00
4.06
2.63
550
3.88
1.13
0.75
Year ended December31, 1999:
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
150
2.94
4.13
3.88
0.63
1.31
2.75
2.13