SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT JANUARY 26, 1998
(DATE OF EARLIEST EVENT REPORTED) JANUARY 14, 1998
CHESAPEAKE ENERGY CORPORATION
(Exact name of Registrant as specified in its Charter)
OKLAHOMA 1-13726 73-1395733
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
6100 NORTH WESTERN AVENUE, OKLAHOMA CITY, OKLAHOMA 73118
(Address of principal executive offices) (Zip Code)
(405) 848-8000
(Registrant's telephone number, including area code)
INFORMATION TO BE INCLUDED IN THE REPORT
ITEM 5. OTHER EVENTS
On January 14, 1998, Chesapeake Energy Corporation ("Chesapeake")
announced that it has arranged a $500 million revolving credit facility through
the Union Bank of California. The facility will have an initial borrowing base
of $200 million which will be used to replace the approximate $200 million of
debt that Chesapeake will assume in conjunction with its pending acquisitions
of DLB Oil & Gas, Inc. and Hugoton Energy Corporation. The January 14, 1998
press release is filed herewith as Exhibit 99, and is incorporated herein by
reference.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CHESAPEAKE ENERGY CORPORATION
BY: AUBREY K. MCCLENDON
Aubrey K. McClendon,
Chairman of the Board and
Chief Executive Officer
Dated: January 14, 1998
- ----------------------------EXHIBIT INDEX------------------------------------
EXHIBIT DESCRIPTION METHOD OF FILING
99 Press Release issued by the Filed herewith electronically
Registrant on January 14,
1998
CONTACT: MARC ROWLAND, CHIEF FINANCIAL OFFICER
(405)848-8000, EXT. 232
FOR IMMEDIATE RELEASE TOM PRICE, JR.,VICE PRESIDENT-
JANUARY 14, 1998 CORPORATE DEVELOPMENT
(405)848-8000, EXT. 257
CHESAPEAKE ENERGY CORPORATION ANNOUNCES SUCCESSFUL
NEGOTIATION OF $500 MILLION CREDIT FACILITY
OKLAHOMA CITY, OKLAHOMA, JANUARY 14, 1998 -- Chesapeake Energy Corporation
(NYSE:CHK) today announced that it has arranged a $500 million revolving credit
facility through the Union Bank of California. The facility will have an
initial borrowing base of $200 million which will be used to replace the
approximate $200 million of debt that Chesapeake will assume in conjunction
with its pending acquisitions of DLB Oil & Gas, Inc. and Hugoton Energy
Corporation.
Union Bank has committed to fund the entire initial $200 million facility,
subject to mutually acceptable final documentation, but anticipates syndicating
the loan to other major energy lenders. The borrowing base of $200 million can
be expanded as other acquisitions or corporate opportunities arise.
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CHESAPEAKE ENERGY CORPORATION IS AN INDEPENDENT OIL AND NATURAL GAS PRODUCER
HEADQUARTERED IN OKLAHOMA CITY. THE COMPANY'S OPERATIONS ARE FOCUSED ON
EXPLORATORY AND DEVELOPMENTAL DRILLING AND PRODUCING PROPERTY AND CORPORATE
ACQUISITIONS IN MAJOR ONSHORE PRODUCING AREAS OF THE UNITED STATES AND CANADA.
THE INFORMATION IN THIS RELEASE INCLUDES CERTAIN FORWARD-LOOKING STATEMENTS
THAT ARE BASED ON ASSUMPTIONS THAT IN THE FUTURE MAY PROVE NOT TO HAVE BEEN
ACCURATE. THOSE STATEMENTS, AND CHESAPEAKE ENERGY CORPORATION'S BUSINESS AND
PROSPECTS, ARE SUBJECT TO A NUMBER OF RISKS, INCLUDING PRODUCTION VARIANCES
FROM EXPECTATIONS, UNCERTAINTIES ABOUT ESTIMATES OF RESERVES, VOLATILITY OF
OIL AND GAS PRICES, THE NEED TO DEVELOP AND REPLACE ITS RESERVES, THE
SUBSTANTIAL CAPITAL EXPENDITURES REQUIRED TO FUND ITS OPERATIONS, ENVIRONMENTAL
RISKS, DRILLING AND OPERATING RISKS, RISKS RELATED TO EXPLORATORY AND
DEVELOPMENTAL DRILLING, COMPETITION, GOVERNMENT REGULATION, AND THE ABILITY OF
THE COMPANY TO IMPLEMENT ITS BUSINESS STRATEGY. THESE AND OTHER RISKS ARE
DESCRIBED IN THE COMPANY'S DOCUMENTS AND REPORTS THAT ARE AVAILABLE FROM THE
UNITED STATES SECURITIES AND EXCHANGE COMMISSION, INCLUDING THE REPORT FILED ON
FORM 10-K FOR THE FISCAL YEAR ENDED JUNE 30, 1997.