This excerpt taken from the CHK 8-K filed May 2, 2006.
Average NYMEX Prices of $9.45, $9.98 and $9.36 per Mcfe
OKLAHOMA CITY, OKLAHOMA, MAY 1, 2006 Chesapeake Energy Corporation (NYSE:CHK) today reported financial and operating results for the first quarter of 2006. For the quarter, Chesapeake generated net income available to common shareholders of $604 million ($1.44 per fully diluted common share), operating cash flow of $1.047 billion (defined as cash flow from operating activities before changes in assets and liabilities) and ebitda of $1.407 billion (defined as income before income taxes, interest expense, and depreciation, depletion and amortization expense) on revenue of $1.945 billion and production of 137 billion cubic feet of natural gas equivalent (bcfe).
The companys 2006 first quarter net income available to common shareholders and ebitda include various items that are typically not included in published estimates of the companys financial results by certain securities analysts. Such items and their after-tax effects on 2006 first quarter reported results are described as follows:
Excluding the above-mentioned items and giving effect to common shares issued for preferred shares during the period, Chesapeakes net income to common shareholders in the first quarter of 2006 would have been $444 million ($1.07 per fully diluted common share) and ebitda would have been $1.147 billion. The foregoing items do not affect the calculation of operating cash flow. A reconciliation of operating cash flow, ebitda, adjusted ebitda and adjusted net income to comparable financial measures calculated in accordance with generally accepted accounting principles is presented on pages 15-16 of this release.