Chesapeake Energy 2002 Annual Report Download - page 9
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Please find page 9 of the 2002 Chesapeake Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Chesapeake Energy Corporation
Annual Report 2002
Celebrating OurTenthYear
1998 “During 1998, a very challenging year for the
oil and gas industry, Chesapeake completed the
strategic repositioning effort it began in late 1997.
Our goal was to reduce the company’s risk profile,
generate more attractive drilling results and build
an inventory of long-lived natural gas reserves –
the fuel of choice for the 21st century. Completely
transformed, Chesapeake now owns one of the 20
largest inventories of onshore U.S. natural gas,
and is well positioned to benefit when natural gas
prices recover. Chesapeake is confident that natu-
ral gas is the long-term, environmentally sensitive
answer to the nation’s energy needs. Based on this
belief and on our expertise in increasing value
from natural gas assets, Chesapeake completed
eight major property acquisitions in 1998.”
3.15.99
1999 “What a difference a year makes! Rarely
does the outlook for an industry change so dra-
matically in the course of a year. Early in 1999, oil
and natural gas prices collapsed to near 20-year
lows of $10 per barrel and $1.50 per mcf and yet
today are near 20-year highs of $30 per barrel and
almost $3 per mcf. The dramatic pricing swings of
the past year highlight oil and natural gas as the
most volatile commodities in the world. Investing
in oil and gas companies is not for the faint of
heart. However, America’s growing demand for
clean-burning natural gas has set the stage for
what is likely to be a sustained period of strong
energy pricing and substantial rewards for
Chesapeake’s shareholders.”
3.15.00
2000 “In just 12 years, Chesapeake has progressed
from a $50,000 start-up to one of the largest and most
profitable natural gas producers in the industry. As we
look ahead to what should be a terrific environment for
Chesapeake, we believe it’s worth repeating our con-
clusion from last year’s letter to you: ‘As this decade
unfolds, investors will increasingly envision this 21st
century as the age of natural gas. Just as great
wealth was created during the 20th century in the
age of oil and in the 19th century in the age of coal,
we believe investors will greatly profit from embracing
the tremendous potential of the natural gas industry.’
A year later, we still feel the same way and believe
many more investors will increasingly share our view.”
4.12.01
12.31.98 12.31.99 12.31.00 12.31.01 12.31.02
11.30.02
Chesapeake com-
pletes acquisition
of Focus Energy,
Inc. and producing
properties
from EnCana
Energy Resources,
Inc., Priam Oil
Company, Enogex
Exploration
Corporation and
Williams
Companies, Inc.
12.04.02
Chesapeake
announces
agreement to
acquire $300 mm
of Mid-Continent
gas assets from
ONEOK, Inc.
12.05.02
Chesapeake
announces
$150 mm
senior notes
and $175 mm
common stock
offerings.
2.24.03
Chesapeake
announces agree-
ments to acquire
$530 mm of Mid-
Continent assets
from El Paso
Corporation and
Vintage
Petroleum, Inc.
2.28.03
Chesapeake
announces
$300 mm senior
notes, $230 mm
preferred stock
and $185 mm
common stock
offerings.
2001 “The theme of this year’s letter to our shareholders is
Leading the Way. This phrase reflects our performance during
the past year and the philosophy of how we run our business.
We focus on the details and strive to be the best at what we do:
profitably finding and producing large amounts of natural gas in
the U.S. Mid-Continent. We believe superior results are achieved
by focused effort from talented professionals working on high
quality natural gas assets – attributes that Chesapeake has in
abundance. Chesapeake’s performance in 2001 was consistent
with our goal of Leading the Way and Chesapeake has now
become the second largest producer of natural gas in the
Mid-Continent region and among the largest independent gas
producers in the U.S.”
3.31.02
2002 “The cover to this year’s Annual Report makes clear that
Chesapeake celebrated its tenth anniversary as a public com-
pany in 2002. Despite experiencing extremely volatile oil and
natural gas prices during the past ten years, Chesapeake has
grown from little more than a start-up to become the eighth
largest independent natural gas producer in the U.S. Along the
way, Chesapeake has delivered a total return to shareholders
of 482%, a Compounded Annual Growth (CAGR) of 20%. The
driver of Chesapeake’s accomplishments during the past
decade has been the company’s unique focus on building one
of the nation’s largest onshore natural gas asset bases through
balanced programs of deep gas exploration and opportunistic
producing property acquisitions. The successful execution of
this balanced business strategy has enabled Chesapeake to
build unique economies of scale, an unrivaled backlog of
drilling opportunities and the most accomplished Mid-
Continent team of land, geoscientific and engineering
personnel.”
3.31.03
481 employees 424 employees 462 employees 570 employees 743 employees 802 employees
as of 3.31.03
Stock
Price
$40
$30
$20
$10
7.07.98 Chesapeake announces
process to review strategic
alternatives.
3.31.99 Oil and natural
gas prices fall to $10 per
barrel and $1.50 per mcf.
9.24.99 Chesapeake
announces victory in
Union Pacific Resources
patent litigation.
3.30.01
Chesapeake
announces
$800 mm senior
notes offering.
10.02.01 Chesapeake
announces sale of
Canadian assets for
$140 mm.
11.01.01 Chesapeake
announces $250 mm
senior notes and
$150 mm preferred
stock offerings.
12.04.01 Chesapeake
announces agree-
ments to acquire
$250 mm of Mid-
Continent gas assets
from RAM Energy,
Inc., Apache
Corporation, and
Sapient Energy
Corporation.
4.22.02
Chesapeake
announces
agreement to
acquire Canaan
Energy
Corporation
for $125 mm. 7.22.02
Chesapeake
announces first
deep gas drilling
success in
Greater
Mayfield area
of western
Oklahoma’s
Anadarko Basin.
8.05.02
Chesapeake
announces $250
mm senior notes
offering.
2000 “To most of our shareholders, the 2000 Annual
Report introduced Chesapeake’s new logo ‘Natural
Gas, Natural Advantages’ for the first time. These
words convey the simple, but powerful twin compo-
nents of our image and message – natural gas and
Chesapeake enjoy many natural advantages over
other fuels and other companies.”
3.31.98 Chesapeake announces
agreements to acquire $80 mm of
Canadian gas assets and offerings
of $500 mm senior notes and
$230 mm preferred stock.
6.30.00 Chesapeake
announces agreement
to aquire Gothic Energy
Corporation for
$360 mm.
7.19.00 Chesapeake
announces 2.2 million
acre coalbed methane
joint development
agreement in the
Arkoma Basin with
El Paso Corporation.
2000 Annual Report