Chesapeake Energy 2015 Annual Report Download - page 41

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On January 12, 2016, we were named as a defendant in a putative class action filed in state district court in Logan
County, Oklahoma. On February 16, 2016, the putative class action was moved to the Western District of Oklahoma.
The petition alleges that the defendants, all exploration and production companies, have operated produced water
disposal wells in a manner that has caused earthquakes and that these earthquakes have, among other things, damaged
the plaintiffs’ real property. The proposed class would consist of all Oklahoma residents whose property has been so
damaged. The petition seeks an unspecified amount of actual and punitive damages.
On February 16, 2016, we and two other exploration and production companies were named as defendants in
a lawsuit brought in the U.S. District Court for the Western District of Oklahoma by the Sierra Club. The complaint
alleges that we and the other defendants have violated the federal Resource Conservation and Recovery Act by
operating produced water disposal wells in a manner that has caused earthquakes. It requests a court order requiring
substantial reduction of the amounts of produced water disposed of in such manner, the creation of an earthquake
prediction center, and the reinforcement of purportedly vulnerable structures that could be impacted by earthquakes.
ITEM 4. Mine Safety Disclosures
Not applicable. PART II
ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities
Price Range of Common Stock and Dividends
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 and the amount of cash dividends declared per share:
Common Stock Dividend
High Low Declared
Year Ended December 31, 2015:
Fourth Quarter ................................................................................ $ 9.55 $ 3.56 $ —
Third Quarter .................................................................................. $ 11.90 $ 6.01 $ —
Second Quarter .............................................................................. $ 16.98 $ 10.94 $ —
First Quarter ................................................................................... $ 21.49 $ 13.38 $ 0.0875
Year Ended December 31, 2014:
Fourth Quarter ................................................................................ $ 24.43 $ 16.41 $ 0.0875
Third Quarter .................................................................................. $ 29.92 $ 22.77 $ 0.0875
Second Quarter .............................................................................. $ 31.49 $ 25.66 $ 0.0875
First Quarter ................................................................................... $ 27.54 $ 23.92 $ 0.0875
As of February 11, 2016, there were approximately 2,000 holders of record of our common stock and approximately
330,000 beneficial owners.
In July 2015, our Board of Directors determined to eliminate quarterly cash dividends on our common stock.
In January 2016, we announced that we were suspending payment of dividends on each series of our outstanding
convertible preferred stock. Suspension of the dividends did not constitute an event of default under our revolving
credit facility or outstanding bond indentures.
Our revolving credit facility contains a restriction on our ability to declare and pay cash dividends on our common
or preferred stock if an event of default has occurred. The certificates of designation for our preferred stock prohibit
payment of cash dividends on our common stock unless we have declared and paid (or set apart for payment) full
accumulated dividends on the preferred stock.