This excerpt taken from the CHK 10-Q filed May 10, 2006.
Investing and Financing Transactions
The following table describes investing transactions related to the acquisition of proved and unproved properties that we completed in the Current Quarter ($ in millions):
We also recorded approximately $81.1 million of deferred taxes to reflect the tax effect of the cost paid in excess of the tax basis acquired on certain corporate acquisitions.
In January 2006, we acquired 13 drilling rigs and related assets through our wholly-owned subsidiary, Nomac Drilling Corporation, from Martex Drilling Company, L.L.P., a privately-owned drilling contractor with operations in East Texas and northern Louisiana, for $150 million. In February 2006, we acquired a privately-owned Oklahoma-based oilfield trucking service company for $47.5 million. We recorded approximately $24.7 million of deferred taxes to reflect the tax effect of the cost paid in excess of the tax basis acquired in connection with this acquisition. The purchase price allocations reflected in the accompanying condensed consolidated financial statements for the trucking company and Martex acquisitions are preliminary, pending the completion of the final valuation of the acquired assets, which is expected to be completed in the second quarter of 2006.
During 2005 and continuing in 2006, we have taken several steps to improve our capital structure. These transactions enabled us to extend our average maturity of long-term debt to over ten years with an average interest rate of approximately 6.3%. Maintaining a debt-to-total-capitalization ratio of below 50% and reducing debt per mcfe of proved reserves remain key goals of our business strategy.
We completed the following significant financing transactions in the Current Quarter: