This excerpt taken from the CHK 8-K filed Feb 24, 2006.
and 8% Sequential Quarter-over-Quarter; Organic Growth in 2005 Reaches 12%
OKLAHOMA CITY, OKLAHOMA, FEBRUARY 23, 2006 Chesapeake Energy Corporation (NYSE: CHK) today reported financial and operating results for the fourth quarter of 2005 and for the full-year 2005. For the quarter, Chesapeake generated net income available to common shareholders of $432 million ($1.11 per fully diluted common share), operating cash flow of $833 million (defined as cash flow from operating activities before changes in assets and liabilities) and ebitda of $1.066 billion (defined as income before income taxes, interest expense, and depreciation, depletion and amortization expense) on revenue of $1.751 billion and production of 130 billion cubic feet of natural gas equivalent (bcfe).
For the full-year 2005, Chesapeake generated net income available to common shareholders of $880 million ($2.51 per fully diluted common share), operating cash flow of $2.426 billion and ebitda of $2.658 billion on revenue of $4.665 billion and production of 469 bcfe.
The companys fourth quarter and full-year 2005 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 fourth quarter and full-year reported results are described as follows:
Adjusted for the above-mentioned gains and losses and giving effect to common shares issued for preferred shares during the period, Chesapeakes net income to common shareholders in the fourth quarter of 2005 would have been $324 million ($0.84 per fully diluted common share) and ebitda would have been $888 million. Similarly adjusted, Chesapeakes net income to common shareholders for the full year 2005 would have been $924 million ($2.57 per fully diluted common share) and ebitda would have been $2.687 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 16-19 of this release.