Chesapeake Energy 1999 Annual Report Download - page 63

The Company believes all of its material operations are part of the oil and gas industry, and therefore reports as a
single industry segment. Beginning in 1998, the Company began foreign operations in Canada. The geographic
distribution of the Company's revenue, operating income and identifiable assets are summarized below ($ in
thousands):
9. Stockholders' Equity And Stock Based Compensation
In November 1999, the Chief Executive Officer and the Chief Operating Officer of Chesapeake tendered to
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. See Note 6.
During 1998, the Company's Board of Directors approved the expenditure of up to $30 million to purchase
outstanding Company common stock. As of August 25, 1998, the Company had purchased approximately 8.5
million shares of common stock for an aggregate amount of $30 million pursuant to such authorization.
On April 28, 1998, the Company acquired by merger the Mid-Continent operations of DLB Oil & Gas, Inc.
("DLB") for $17.5 million in cash, 5 million shares of the Company's common stock, and the assumption of $90
million in outstanding debt and working capital obligations.
On April 22, 1998, the Company issued $230 million (4.6 million shares) of its 7% Cumulative Convertible
Preferred Stock, $50 per share liquidation preference, resulting in net proceeds to the Company of $223 million.
On March 10, 1998, the Company acquired Hugoton Energy Corporation ("Hugoton") pursuant to a merger by
issuing approximately 25.8 million shares of the Company's common stock in exchange for 100% of Hugoton' S
common stock.
On December 16, 1997, the Company acquired AnSon Production Corporation. Consideration for this merger
was approximately $43 million consisting of the issuance of approximately 3.8 million shares of Company common
stock and cash consideration in accordance with the terms of the merger agreement.
On December 2, 1996, the Company completed a public offering of approximately 9.0 million shares of common
stock at a price of $33.63 per share, resulting in net proceeds to the Company of approximately $288.1 million.
A 2-for- 1 stock split of the common stock in December 1996 has been given retroactive effect in these financial
statements.
Stock Option Plans
The Company's 1992 Incentive Stock Option Plan (the "ISO Plan") terminated on December 16, 1994. Until
then, the Company granted incentive stock options to purchase common stock under the ISO Plan to employees.
Subject to any adjustment as provided by the ISO Plan, the aggregate number of shares which may be issued and
sold may not exceed 3,762,000 shares. The maximum period for exercise of an option may not be more than 10
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
-53-
United
States Canada Consolidated
1999:
Revenue $ 340,969 $13,977 $ 354,946
Operating income (loss) 103,188 4,332 107,520
Identifiable assets 735,320 115,213 850,533
1998:
Revenue $ 369,968 $7,978 $ 377,946
Operating income (loss) (842,798) (13,399) (856,197)
Identifiable assets 724,713 87,902 812,615