This excerpt taken from the CHK 8-K filed Nov 1, 2005.
Equals 488% at Attractive Drilling and Acquisition Cost of $1.47 Per Mcfe
OKLAHOMA CITY, OKLAHOMA, OCTOBER 31, 2005 Chesapeake Energy Corporation (NYSE: CHK) today reported financial and operating results for the third quarter of 2005. For the quarter, Chesapeake generated net income available to common shareholders of $149.1 million ($0.43 per fully diluted common share), operating cash flow of $635.2 million (defined as cash flow from operating activities before changes in assets and liabilities) and ebitda of $581.4 million (defined as income before income taxes, interest expense, and depreciation, depletion and amortization expense) on revenue of $1.083 billion and production of 120.4 billion cubic feet of natural gas equivalent (bcfe).
The companys 2005 third quarter net income available to common shareholders and ebitda include certain items that are not typically included in published estimates of the companys financial results by many securities analysts. Such items and their after-tax effects on third quarter reported results are described as follows:
Adjusted for the above-mentioned items, Chesapeakes net income to common shareholders in the 2005 third quarter would have been $234.1 million ($0.65 per fully diluted common share) and ebitda would have been $686.2 million. 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 available to common shareholders to comparable financial measures calculated in accordance with generally accepted accounting principles is presented on pages 13-15 of this release.