Chesapeake Energy 1999 Annual Report Download - page 45

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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
Years Ended Six Months Ended Year Ended
December 31. December 31, June 30,
1999 1998 1997 1997
(S in thousands)
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
CASH PAYMENTS FOR:
Interest, net of capitalized interest $80,684 $59,881 $17,367 $12,919
Income taxes $-S$500 $
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
In November 1999, the Chief Executive Officer and Chief Operating Officer of Chesapeake tendered to
Chesapeake Energy Marketing, Inc. ("CEMI") 2,320,107 shares of Chesapeake common stock in full satisfaction of
two notes payable to CEMI with a combined outstanding balance of $7.6 million.
During 1999, the Company issued a $2.2 million note payable as consideration for the acquisition of certain oil
and gas properties.
The Company had a fmancing arrangement with a vendor to supply certain oil and gas equipment inventory,
which was terminated during the Transition Period. The total amount owed at June 30, 1997 was $1,380,000. No
cash consideration is exchanged for inventory under this financing arrangement until actual draws on the inventory
are made.
In fiscal 1997, the Company recognized income tax benefits of $4,808,000 related to the disposition of stock
options by directors and employees of the Company. The tax benefits were recorded as an adjustment to deferred
income taxes and paid-in capital.
Proceeds from the issuance of $500 million of 9.625% senior notes in April 1998 and $300 million of senior
notes ($150 million of 7.875% senior notes and $150 million of 8.5% senior notes) in March 1997, are net of $11.7
million and $6.4 million, respectively, in offering fees and expenses which were deducted from the actual cash
received.
On December 22, 1997, the Company declared a dividend of $0.02 per common share, or $1,486,000, which was
paid on January 15, 1998. On June 13, 1997 the Company declared a dividend of $0.02 per common share, or
$1,405,000, which was paid on July 15, 1997.
The accompanying notes are an integral part of these consolidated financial statements.
-35-
DETAILS OF ACQUISITION OF ANSON PRODUCTION
CORPORATION:
Fair value of assets acquired $S$43,000 $
Accrued liability for estimated cash consideration $$$(15,500) $
Stock issued (3,792,724 shares) $$$(27,500) $
DETAILS OF ACQUISITION OF DLB OIL & GAS, INC.:
Fair value of assets acquired $$ 136,500 $$
Cash consideration $$(17,500) $$
Stock issued (5,000,000 shares) $$(30,000) $$
Debt assumed $$(85,000) $$
Acquisition costs paid $$(4,000) $$
DETAILS OF ACQUISITION OF HUGOTON ENERGY CORPORATION:
Fair value of assets acquired S$ 343,371 $$
Stock options granted $$(2,050) $$
Stock issued (25,790,146 shares) $$ (206,321) $$
Debt assumed $$ (120,000) $$
Acquisition costs paid $$(15,000) 5$