Chesapeake Energy 2014 Annual Report Download - page 51

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Repurchase of CHK Utica Preferred Shares
We repurchased all of the outstanding preferred shares of our subsidiary CHK Utica, L.L.C. (CHK Utica) from
third-party preferred shareholders for approximately $1.25 billion, or approximately $1,189 per share including accrued
dividends. The transaction eliminates approximately $75 million in annual cash dividend payments to third-party
preferred shareholders and also eliminates our obligation to drill and complete a minimum number of wells within a
specified period for the benefit of CHK Utica. See Note 8 of the notes to our consolidated financial statements included
in Item 8 of Part II of this report for further discussion of this repurchase.
Divestitures of Noncore Oil and Natural Gas Properties
We sold noncore leasehold interests in the Marcellus Shale to a subsidiary of Rice Energy Inc. for proceeds of
$233 million. We also sold noncore leasehold interests, producing properties and 61 wellhead compressor units in
South Texas to Hilcorp Energy Company for proceeds of $133 million. Operating obligations related to VPP #5 were
also transferred. In addition, we sold noncore leasehold interests and producing properties in East Texas and Louisiana
for proceeds of $63 million. Operating obligations related to VPP #6 were also transferred. See Volumetric Production
Payments in Note 12 of the notes to our consolidated financial statements included in Item 8 of Part II of this report.
Other Asset Sales
Midstream Compression Assets. We sold 102 compressors and related equipment to Access Midstream Partners,
L.P. for approximately $159 million, and we sold 499 compressors and related equipment to Exterran Partners, L.P.
for approximately $495 million.
Investments. We received $209 million of net proceeds from the sale of our common equity ownership in Chaparral
Energy, Inc. We also sold an equity investment in a natural gas trading and management firm for cash proceeds of
$30 million.
Buildings and Land. We sold buildings and land, located primarily in the Oklahoma City and Fort Worth areas,
for proceeds of approximately $205 million. These assets were deemed noncore to our operations.
Crude Oil Hauling Assets. We sold our crude oil hauling assets for approximately $44 million.
Share Repurchase Authorization
On December 22, 2014, our Board of Directors authorized the repurchase of up to $1 billion in value of our common
stock from time to time. The repurchase authorization permits us to make repurchases on a discretionary basis as
determined by management, subject to market conditions, applicable legal requirements, available liquidity, compliance
with our debt arrangements and other appropriate factors. Acquisitions under this repurchase authorization are to be
made through open market or privately negotiated transactions and may be made pursuant to plans entered into in
accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. This repurchase authorization does not obligate
us to acquire any particular amount of common stock and may be modified, extended, suspended or discontinued at
any time without prior notice. No shares had been repurchased as of February 27, 2015 and no assurance can be
given that any particular amount of common stock will be repurchased.