Chesapeake Energy 2000 Annual Report Download - page 35

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PART II
ITEM 5. Market for Registrant's Common Equity and Related Stockholder Matters
Price Range of Common Stock
Our 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 our common stock as
reported by the New York Stock Exchange:
-24-
At March 26, 2001 there were 1,175 holders of record of our common stock and approximately
37,600 beneficial owners.
Dividends
We did not pay dividends on our common stock in 1999 or 2000. The payment of future cash dividends, if
any, will depend upon, among other things, our financial condition, funds from operations, the level of our
capital and development expenditures, our future business prospects and any contractual restrictions. Other
than payments of dividends on preferred stock, our current policy is to retain cash for the continued growth of
our business.
Two of the indentures governing our outstanding senior notes contain restrictions on our ability to declare
and pay cash dividends. Under these indentures, we may not pay any cash dividends on our common or
preferred stock if an event of default has occurred, if we have not met the debt incurrence tests described in
the indentures, or if immediately after giving effect to the dividend payment, we have paid total dividends and
made other restricted payments in excess of the permitted amounts.
From December 31, 1998 through March 31, 2000, we did not meet the debt incurrence test contained in
one of our indentures that requires our coverage ratio of adjusted consolidated EBITDA to adjusted
consolidated interest expense to be at least 2.5 to 1. As a result, we were unable to pay dividends on our
existing preferred stock. Beginning June 30, 2000, we met the debt incurrence test, and resumed paying
quarterly preferred stock dividends on November 1, 2000. As of December 31, 2000, our coverage ratio, as
calculated in accordance with our most restrictive senior indenture, was 4.4 to 1.
The indenture for Gothic Production's senior secured notes significantly limits the transfer of funds held
by Gothic to Chesapeake in the form of cash dividends, loans or advances.
Common Stock
High Low
Year ended December 31, 1999:
First Quarter $
Second Quarter
Third Quarter
Fourth Quarter
Year ended December 31, 2000:
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
1.50
2.94
4.13
3.88
3.31
8.00
8.25
10.50
$ 0.63
1.31
2.75
2.13
1.94
2.75
5.31
5.44