Chesapeake Energy Corporation Announces Updated Outlook and 1Q 2001 Earnings Release and Conference Call Date

Apr 16, 2001, 01:00 ET from Chesapeake Energy Corporation

    OKLAHOMA CITY, April 16 /PRNewswire/ -- The following was released today
 by Chesapeake Energy Corporation:
 
     Chesapeake Energy Corporation (NYSE:   CHK) has scheduled its first quarter
 2001 earnings release to be issued after the close of trading on the New York
 Stock Exchange on Thursday, April 26, 2001.
     A conference call is scheduled for Friday morning, April 27, 2001 at
 8:00 am CDT to discuss the release.  The telephone number to access the
 conference call is 913.981.4911.
     For those unable to participate in the conference call, a replay will be
 available for audio playback at 11:00 am CDT on April 27, 2001, and will run
 through midnight Thursday, May 10, 2001.  The number to access the conference
 call replay is 719.457.0820; passcode for the replay is 709290.
     The conference call will also be simulcast live on the internet and can be
 accessed either by going directly to the Chesapeake website at
 www.chkenergy.com and selecting "Shareholder Information", or by going
 directly to www.Vcall.com.  For those who cannot listen to the live broadcast,
 a replay will be available shortly after the call and will be available for
 approximately ninety days thereafter.
     The company also has scheduled the internet webcast of its presentation at
 the Independent Petroleum Association of America conference on
 Thursday, April 19, 2001 at 3:30 pm EDT.  Interested parties may also access
 that simulcast by visiting our website and selecting "Shareholder
 Information."
     Chesapeake Energy Corporation is among the 10 largest independent natural
 gas producers in the U.S.  Headquartered in Oklahoma City, the company's
 operations are focused on exploratory and developmental drilling and producing
 property acquisitions in the Mid-Continent region of the United States.  The
 company's Internet address is www.chkenergy.com.
 
                         CHESAPEAKE ENERGY CORPORATION
                                    OUTLOOK
 
                                 April 16, 2001
 
     Quarters Ending March 31 and June 30, 2001; Years Ending December 31, 2001
 and 2002.
 
     We have adopted a policy of providing investors with guidance on certain
 factors that affect our future financial performance.  As of April 16, 2001,
 we are using the following key operating assumptions in our projections for
 the first two quarters of 2001 and full years 2001 and 2002.  Please note that
 our outlook now incorporates earnings per share estimates.  The key operating
 assumptions for 2001 include the completion of the merger with Gothic Energy
 Corporation which occurred on January 16, 2001.
 
 
                  Qrtr Ending   Qrtr Ending    Year Ending       Year Ending
                   March 31,     June 30,        Dec. 31,          Dec. 31,
                     2001          2001            2001              2002
     Estimated
      Production
       Oil - Mbo   600 - 675     700 - 750    2,750 - 3,250     3,000 - 3,500
       Gas - Bcf    35 - 36       34 - 36       154 - 160         162 - 168
       Gas
        Equivalent -
        Bcfe       38.5 - 40     38.5 - 41      170 - 180         183 - 187
     Estimated
      NYMEX Prices
       Oil - $/Bo   $28.73        $25.00          $25.43            $23.00
       Gas - $/Mcf   $7.05         $5.12          $5.61             $4.19
     Estimated
      Differentials
      to NYMEX
      Prices
       Oil - $/Bo   -$0.80        -$0.80          -$0.80            -$0.80
       Gas - $/Mcf  -$0.50        -$0.40          -$0.40            -$0.35
     Estimated Hedging
      Effects (based
      on expected
      NYMEX prices above)
       Oil - $/Bo   +$0.89        +$3.24          +$2.80            +$0.47
       Gas - $/Mcf  -$0.89        -$0.09          -$0.18            +$0.32
     Estimated Realized
      Prices (includes
      hedging)
       Oil - $/Bo   $29.28        $27.44          $27.38            $22.67
       Gas - $/Mcf   $5.60         $4.63          $4.97             $4.16
       Gas Equivalent -
        $/Mcfe       $5.53         $4.62          $4.92             $4.11
     Operating Costs
      per Mcfe
       Production
        expense  $0.45 - 0.50  $0.45 - 0.50    $0.45 - 0.50      $0.45 - 0.50
       Production
        taxes
        (6.5% of
        O&G
        revenues) $0.38 - 0.42  $0.28 - 0.32   $0.32 - 0.35      $0.23 - 0.27
       General and
        admini-
        strative $0.09 - 0.11  $0.09 - 0.11    $0.10 - 0.11      $0.09 - 0.11
       DD&A - oil
        and gas  $0.90 - 0.93  $0.96 - 0.99    $1.00 - 1.06      $1.08 - 1.12
       Depreciation
        of other
        assets   $0.05 - 0.06  $0.05 - 0.06    $0.05 - 0.06      $0.05 - 0.06
       Interest
        expense  $0.66 - 0.70  $0.74 - 0.78    $0.58 - 0.62      $0.45 - 0.49
     Other Income
      and expense
      per mcfe(B)(C)
       Marketing gross
        profit   $0.02 - 0.04  $0.02 - 0.04    $0.02 - 0.04      $0.02 - 0.04
       Other
        income   $0.01 - 0.03  $0.01 - 0.03    $0.01 - 0.05      $0.01 - 0.05
     Book Tax Rate -
      primarily
      deferred     35 - 40%      35 - 40%        35 - 40%          35 - 40%
     Equivalent
      shares
      outstanding
       Basic       157,500 m     162,200 m      162,500 m         166,000 m
       Diluted     170,800 m     170,800 m      171,000 m         173,000 m
       Earnings per
        share -
        fully
        diluted  $0.40 - 0.42  $0.27 - 0.29(C) $1.43 - 1.48(C)   $1.10 - 1.15
 
     Capital Expenditures:
       Drilling    $75,000 -     $78,000 -      $300,000 -        $315,000 -
                   $80,000 m     $82,000 m      $325,000 m        $345,000 m
     Sensitivity to
      price change -
      for each $1.00/bbl
       PV 10%      $15 mm(A)     $15 mm(A)      $15 mm(A)         $15 mm(A)
       Cash flow
        from
        operations $0.7 mm(A)    $0.7 mm(A) $2.5 - $3.0 mm(A)$2.5 - $3.0 mm(A)
     Sensitivity to
      price change -
      for each $0.10/mcf
       PV 10%       $72 mm        $72 mm          $72 mm            $72 mm
       Cash flow from
        operations  $4.0 mm       $4.0 mm      $15 - $16 mm      $15 - $16 mm
 
     (A) Current reserves inclusive of Gothic reserves.
     (B) Does not include non-recurring charges of an estimated $3.4 million
         (pre-tax) related to the Gothic acquisition in quarter ended 3/31/01.
     (C) Does not include an anticipated extraordinary charge of $44 mm
         (after-tax) related to early debt extinguishment in quarter ended
         6/30/01.
 
     Commodity Hedging Activities
     Periodically the Company utilizes hedging strategies to hedge the price of
 a portion of its future oil and gas production.  These strategies include:
      (i)    swap arrangements that establish an index-related price above
             which the Company pays the counterparty and below which the
             Company is paid by the counterparty,
      (ii)   the purchase of index-related puts that provide for a "floor"
             price below which the counterparty pays the Company the amount by
             which the price of the commodity is below the contracted floor,
      (iii)  the sale of index-related calls that provide for a "ceiling"
             price above which the Company pays the counterparty the amount by
             which the price of the commodity is above the contracted ceiling,
      (iv)   basis protection swaps, which are arrangements that guarantee the
             price differential of oil or gas from a specified delivery point
             or points, and
      (v)    collar arrangements that establish an index-related price below
             which the counterparty pays the Company and a separate index-
             related price above which the Company pays the counterparty.
 
     Commodity markets are volatile, and as a result, Chesapeake's hedging
 activity is dynamic.  As market conditions warrant, the Company may elect to
 settle a hedging transaction prior to its scheduled maturity date and, as a
 result, realize a gain or loss on the transaction.
     Results from commodity hedging transactions are reflected in oil and gas
 sales to the extent related to the Company's oil and gas production.  The
 Company only enters into commodity hedging transactions related to the
 Company's oil and gas production volumes or CEMI's physical purchase or sale
 commitments.  Gains or losses on crude oil and natural gas hedging
 transactions are recognized as price adjustments in the months of related
 production.
 
     The Company has entered into the following "no-cost" natural gas collar
 transactions:
 
                                        Estimated   NYMEX-Index   NYMEX-Index
                           Monthly         % of     Floor Price  Ceiling Price
                        Volume (mmbtu)  Production  (per mmbtu)   (per mmbtu)
     2001
     April                1,800,000         15%        $4.00        $6.08
     May                  1,860,000         16%         4.00         6.08
     June                 2,400,000         19%         4.25         6.26
     July                 2,480,000         19%         4.25         6.26
     August               2,480,000         19%         4.25         6.26
     September            2,400,000         18%         4.25         6.26
     October              1,860,000         13%         4.00         6.08
     November             1,800,000         13%         4.00         6.08
     December             1,860,000         13%         4.00         6.08
     Totals/Averages     18,940,000         16%        $4.11        $6.16
 
     2002
     January                620,000          5%        $4.00        $5.75
     February               560,000          5%         4.00         5.75
     March                  620,000          4%         4.00         5.75
     April                1,200,000          9%         4.00         5.38
     May                  1,240,000          9%         4.00         5.38
     June                 1,200,000          9%         4.00         5.38
     July                 1,240,000          9%         4.00         5.38
     August               1,240,000          9%         4.00         5.38
     September            1,200,000          9%         4.00         5.38
     October              1,240,000          9%         4.00         5.38
     November               600,000          5%         4.00         5.75
     December               620,000          4%         4.00         5.75
     Totals/Averages     11,580,000          7%        $4.00        $5.53
 
 
     The Company has entered into the following natural gas swap arrangements:
 
                                                                  NYMEX-
                                 Monthly          Estimated       Index
                  Months          Volume            % of       Strike Price
                                 (MMBtu)         Production    (per MMBtu)
 
     January 2001               4,960,000            40%          $6.03
     February 2001              5,320,000            49%           6.12
     March 2001                 4,650,000            36%           5.11
     April 2001                 5,400,000            46%           4.84
     May 2001 (A)               8,060,000            69%           4.97
     June 2001 (A)              6,600,000            53%           5.04
     July 2001 (A)              6,820,000            51%           5.05
     August 2001 (A)            6,820,000            51%           5.05
     September 2001 (A)         6,600,000            50%           5.02
     October 2001 (A)           4,340,000            31%           5.58
     November 2001 (A)          4,200,000            30%           5.90
     December 2001 (A)          4,340,000            30%           6.01
     January 2002 (A)           4,650,000            34%           5.98
     February 2002 (A)          4,200,000            33%           5.78
     March 2002 (A)             4,650,000            33%           5.43
     April 2002 (A)             5,700,000            42%           4.85
     May 2002 (A)               5,890,000            42%           4.81
     June 2002 (A)              5,700,000            42%           4.80
     July 2002 (A)              5,890,000            42%           4.81
     August 2002 (A)            5,890,000            42%           4.81
     September 2002 (A)         5,700,000            42%           4.81
     October 2002 (A)           5,890,000            42%           4.80
     November 2002 (A)          2,100,000            16%           4.97
     December 2002 (A)          2,170,000            15%           5.06
     Totals/Averages
      (2001 & 2002 combined)  126,540,000            35%           5.23
 
     (A)  Cap swap - limits payment by counter party to $1.00-$1.50/mmbtu.
 
     The Company has entered into crude oil swap arrangements designed to hedge
 5,000 barrels per day at a NYMEX Index strike price of $29.76 per barrel in
 January through December 2001, and 10,000 barrels per month at an average
 price of $29.12 per barrel.
 
     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 reserves,
 the substantial capital expenditures required to fund 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
 those discussed under Risk Factors in the report filed on Form 10-K for the
 year ended December 31, 2000.
 
 

SOURCE Chesapeake Energy Corporation
    OKLAHOMA CITY, April 16 /PRNewswire/ -- The following was released today
 by Chesapeake Energy Corporation:
 
     Chesapeake Energy Corporation (NYSE:   CHK) has scheduled its first quarter
 2001 earnings release to be issued after the close of trading on the New York
 Stock Exchange on Thursday, April 26, 2001.
     A conference call is scheduled for Friday morning, April 27, 2001 at
 8:00 am CDT to discuss the release.  The telephone number to access the
 conference call is 913.981.4911.
     For those unable to participate in the conference call, a replay will be
 available for audio playback at 11:00 am CDT on April 27, 2001, and will run
 through midnight Thursday, May 10, 2001.  The number to access the conference
 call replay is 719.457.0820; passcode for the replay is 709290.
     The conference call will also be simulcast live on the internet and can be
 accessed either by going directly to the Chesapeake website at
 www.chkenergy.com and selecting "Shareholder Information", or by going
 directly to www.Vcall.com.  For those who cannot listen to the live broadcast,
 a replay will be available shortly after the call and will be available for
 approximately ninety days thereafter.
     The company also has scheduled the internet webcast of its presentation at
 the Independent Petroleum Association of America conference on
 Thursday, April 19, 2001 at 3:30 pm EDT.  Interested parties may also access
 that simulcast by visiting our website and selecting "Shareholder
 Information."
     Chesapeake Energy Corporation is among the 10 largest independent natural
 gas producers in the U.S.  Headquartered in Oklahoma City, the company's
 operations are focused on exploratory and developmental drilling and producing
 property acquisitions in the Mid-Continent region of the United States.  The
 company's Internet address is www.chkenergy.com.
 
                         CHESAPEAKE ENERGY CORPORATION
                                    OUTLOOK
 
                                 April 16, 2001
 
     Quarters Ending March 31 and June 30, 2001; Years Ending December 31, 2001
 and 2002.
 
     We have adopted a policy of providing investors with guidance on certain
 factors that affect our future financial performance.  As of April 16, 2001,
 we are using the following key operating assumptions in our projections for
 the first two quarters of 2001 and full years 2001 and 2002.  Please note that
 our outlook now incorporates earnings per share estimates.  The key operating
 assumptions for 2001 include the completion of the merger with Gothic Energy
 Corporation which occurred on January 16, 2001.
 
 
                  Qrtr Ending   Qrtr Ending    Year Ending       Year Ending
                   March 31,     June 30,        Dec. 31,          Dec. 31,
                     2001          2001            2001              2002
     Estimated
      Production
       Oil - Mbo   600 - 675     700 - 750    2,750 - 3,250     3,000 - 3,500
       Gas - Bcf    35 - 36       34 - 36       154 - 160         162 - 168
       Gas
        Equivalent -
        Bcfe       38.5 - 40     38.5 - 41      170 - 180         183 - 187
     Estimated
      NYMEX Prices
       Oil - $/Bo   $28.73        $25.00          $25.43            $23.00
       Gas - $/Mcf   $7.05         $5.12          $5.61             $4.19
     Estimated
      Differentials
      to NYMEX
      Prices
       Oil - $/Bo   -$0.80        -$0.80          -$0.80            -$0.80
       Gas - $/Mcf  -$0.50        -$0.40          -$0.40            -$0.35
     Estimated Hedging
      Effects (based
      on expected
      NYMEX prices above)
       Oil - $/Bo   +$0.89        +$3.24          +$2.80            +$0.47
       Gas - $/Mcf  -$0.89        -$0.09          -$0.18            +$0.32
     Estimated Realized
      Prices (includes
      hedging)
       Oil - $/Bo   $29.28        $27.44          $27.38            $22.67
       Gas - $/Mcf   $5.60         $4.63          $4.97             $4.16
       Gas Equivalent -
        $/Mcfe       $5.53         $4.62          $4.92             $4.11
     Operating Costs
      per Mcfe
       Production
        expense  $0.45 - 0.50  $0.45 - 0.50    $0.45 - 0.50      $0.45 - 0.50
       Production
        taxes
        (6.5% of
        O&G
        revenues) $0.38 - 0.42  $0.28 - 0.32   $0.32 - 0.35      $0.23 - 0.27
       General and
        admini-
        strative $0.09 - 0.11  $0.09 - 0.11    $0.10 - 0.11      $0.09 - 0.11
       DD&A - oil
        and gas  $0.90 - 0.93  $0.96 - 0.99    $1.00 - 1.06      $1.08 - 1.12
       Depreciation
        of other
        assets   $0.05 - 0.06  $0.05 - 0.06    $0.05 - 0.06      $0.05 - 0.06
       Interest
        expense  $0.66 - 0.70  $0.74 - 0.78    $0.58 - 0.62      $0.45 - 0.49
     Other Income
      and expense
      per mcfe(B)(C)
       Marketing gross
        profit   $0.02 - 0.04  $0.02 - 0.04    $0.02 - 0.04      $0.02 - 0.04
       Other
        income   $0.01 - 0.03  $0.01 - 0.03    $0.01 - 0.05      $0.01 - 0.05
     Book Tax Rate -
      primarily
      deferred     35 - 40%      35 - 40%        35 - 40%          35 - 40%
     Equivalent
      shares
      outstanding
       Basic       157,500 m     162,200 m      162,500 m         166,000 m
       Diluted     170,800 m     170,800 m      171,000 m         173,000 m
       Earnings per
        share -
        fully
        diluted  $0.40 - 0.42  $0.27 - 0.29(C) $1.43 - 1.48(C)   $1.10 - 1.15
 
     Capital Expenditures:
       Drilling    $75,000 -     $78,000 -      $300,000 -        $315,000 -
                   $80,000 m     $82,000 m      $325,000 m        $345,000 m
     Sensitivity to
      price change -
      for each $1.00/bbl
       PV 10%      $15 mm(A)     $15 mm(A)      $15 mm(A)         $15 mm(A)
       Cash flow
        from
        operations $0.7 mm(A)    $0.7 mm(A) $2.5 - $3.0 mm(A)$2.5 - $3.0 mm(A)
     Sensitivity to
      price change -
      for each $0.10/mcf
       PV 10%       $72 mm        $72 mm          $72 mm            $72 mm
       Cash flow from
        operations  $4.0 mm       $4.0 mm      $15 - $16 mm      $15 - $16 mm
 
     (A) Current reserves inclusive of Gothic reserves.
     (B) Does not include non-recurring charges of an estimated $3.4 million
         (pre-tax) related to the Gothic acquisition in quarter ended 3/31/01.
     (C) Does not include an anticipated extraordinary charge of $44 mm
         (after-tax) related to early debt extinguishment in quarter ended
         6/30/01.
 
     Commodity Hedging Activities
     Periodically the Company utilizes hedging strategies to hedge the price of
 a portion of its future oil and gas production.  These strategies include:
      (i)    swap arrangements that establish an index-related price above
             which the Company pays the counterparty and below which the
             Company is paid by the counterparty,
      (ii)   the purchase of index-related puts that provide for a "floor"
             price below which the counterparty pays the Company the amount by
             which the price of the commodity is below the contracted floor,
      (iii)  the sale of index-related calls that provide for a "ceiling"
             price above which the Company pays the counterparty the amount by
             which the price of the commodity is above the contracted ceiling,
      (iv)   basis protection swaps, which are arrangements that guarantee the
             price differential of oil or gas from a specified delivery point
             or points, and
      (v)    collar arrangements that establish an index-related price below
             which the counterparty pays the Company and a separate index-
             related price above which the Company pays the counterparty.
 
     Commodity markets are volatile, and as a result, Chesapeake's hedging
 activity is dynamic.  As market conditions warrant, the Company may elect to
 settle a hedging transaction prior to its scheduled maturity date and, as a
 result, realize a gain or loss on the transaction.
     Results from commodity hedging transactions are reflected in oil and gas
 sales to the extent related to the Company's oil and gas production.  The
 Company only enters into commodity hedging transactions related to the
 Company's oil and gas production volumes or CEMI's physical purchase or sale
 commitments.  Gains or losses on crude oil and natural gas hedging
 transactions are recognized as price adjustments in the months of related
 production.
 
     The Company has entered into the following "no-cost" natural gas collar
 transactions:
 
                                        Estimated   NYMEX-Index   NYMEX-Index
                           Monthly         % of     Floor Price  Ceiling Price
                        Volume (mmbtu)  Production  (per mmbtu)   (per mmbtu)
     2001
     April                1,800,000         15%        $4.00        $6.08
     May                  1,860,000         16%         4.00         6.08
     June                 2,400,000         19%         4.25         6.26
     July                 2,480,000         19%         4.25         6.26
     August               2,480,000         19%         4.25         6.26
     September            2,400,000         18%         4.25         6.26
     October              1,860,000         13%         4.00         6.08
     November             1,800,000         13%         4.00         6.08
     December             1,860,000         13%         4.00         6.08
     Totals/Averages     18,940,000         16%        $4.11        $6.16
 
     2002
     January                620,000          5%        $4.00        $5.75
     February               560,000          5%         4.00         5.75
     March                  620,000          4%         4.00         5.75
     April                1,200,000          9%         4.00         5.38
     May                  1,240,000          9%         4.00         5.38
     June                 1,200,000          9%         4.00         5.38
     July                 1,240,000          9%         4.00         5.38
     August               1,240,000          9%         4.00         5.38
     September            1,200,000          9%         4.00         5.38
     October              1,240,000          9%         4.00         5.38
     November               600,000          5%         4.00         5.75
     December               620,000          4%         4.00         5.75
     Totals/Averages     11,580,000          7%        $4.00        $5.53
 
 
     The Company has entered into the following natural gas swap arrangements:
 
                                                                  NYMEX-
                                 Monthly          Estimated       Index
                  Months          Volume            % of       Strike Price
                                 (MMBtu)         Production    (per MMBtu)
 
     January 2001               4,960,000            40%          $6.03
     February 2001              5,320,000            49%           6.12
     March 2001                 4,650,000            36%           5.11
     April 2001                 5,400,000            46%           4.84
     May 2001 (A)               8,060,000            69%           4.97
     June 2001 (A)              6,600,000            53%           5.04
     July 2001 (A)              6,820,000            51%           5.05
     August 2001 (A)            6,820,000            51%           5.05
     September 2001 (A)         6,600,000            50%           5.02
     October 2001 (A)           4,340,000            31%           5.58
     November 2001 (A)          4,200,000            30%           5.90
     December 2001 (A)          4,340,000            30%           6.01
     January 2002 (A)           4,650,000            34%           5.98
     February 2002 (A)          4,200,000            33%           5.78
     March 2002 (A)             4,650,000            33%           5.43
     April 2002 (A)             5,700,000            42%           4.85
     May 2002 (A)               5,890,000            42%           4.81
     June 2002 (A)              5,700,000            42%           4.80
     July 2002 (A)              5,890,000            42%           4.81
     August 2002 (A)            5,890,000            42%           4.81
     September 2002 (A)         5,700,000            42%           4.81
     October 2002 (A)           5,890,000            42%           4.80
     November 2002 (A)          2,100,000            16%           4.97
     December 2002 (A)          2,170,000            15%           5.06
     Totals/Averages
      (2001 & 2002 combined)  126,540,000            35%           5.23
 
     (A)  Cap swap - limits payment by counter party to $1.00-$1.50/mmbtu.
 
     The Company has entered into crude oil swap arrangements designed to hedge
 5,000 barrels per day at a NYMEX Index strike price of $29.76 per barrel in
 January through December 2001, and 10,000 barrels per month at an average
 price of $29.12 per barrel.
 
     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 reserves,
 the substantial capital expenditures required to fund 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
 those discussed under Risk Factors in the report filed on Form 10-K for the
 year ended December 31, 2000.
 
 SOURCE  Chesapeake Energy Corporation