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Website: http://www.chkenergy.com Chesapeake Energy Corporation is the second largest independent producer of natural gas and the most active driller of new oil and gas wells in the United States. Chesapeake owns interests in approximately 30,600 producing oil and gas wells and has estimated proved reserves of 7.5 trillion cubic feet of natural gas equivalent (tcfe), approximately 92% (by volume) of which consists of clean-burning natural gas and all of which is onshore. The company is focused on discovering, developing and acquiring onshore natural gas resources primarily in the southwestern U.S. and secondarily in the Appalachian Basin of the eastern U.S. Chesapeake's most important operating area has historically been the Mid Continent region of the U.S., which includes Oklahoma, Arkansas, Kansas and the Texas Panhandle, and is where 51% of our proved oil and gas reserves are located. During the past four years, the company has also built significant positions in the South Texas and Texas Gulf Coast regions, the Permian Basin of West Texas and eastern New Mexico, the Barnett Shale area of north-central Texas, the Ark-La-Tex area of East Texas and northern Louisiana and most recently, the emerging Fayetteville Shale play located in Arkansas. Chesapeake began 2007 with estimated proved reserves of 8.956 trillion cubic feet of natural gas equivalent (tcfe) and ended the year with 10.879 tcfe, an increase of 1.923 tcfe, or 21%. In 2007, daily average oil and gas production increased to 1,957 mmcfe from the daily average of 1,585 mmcfe produced during 2006. In the first quarter of 2008, the company sold non-core oil and natural gas assets in the Rocky Mountains and in the southeastern Oklahoma Woodford Shale play for proceeds of approximately $250 million. The sales involved approximately six mmcfe of daily production and 32 bcfe of proved reserves. In 2007, the company reported record revenue of $7.8 billion and net income of $1.2 billion. History Chesapeake was founded by its Chief Executive Officer Aubrey K. McClendon, and its former Chief Operating Officer Tom L. Ward, who became partners in the natural gas exploration business in 1983. At that time, both men were 23 years old and had recently struck out on their own as independent petroleum landmen. As native Oklahomans with third generation roots in the state, Aubrey and Tom operated an informal partnership from 1983-1989 based solely on a handshake. This small entrepreneurial enterprise was focused on generating oil and gas prospects for sale to industry partners and on participating as non-operators in the drilling of wells by others. Around the time of their 30th birthdays in 1989, Aubrey and Tom decided to significantly expand the scope of their business and incorporated Chesapeake with an initial $50,000 investment. The company went public in 1993. Benefits The company was named to Fortune Magazine's 100 Best Companies to Work For list in 2008. Paid vacation, sick leave and personal leave are other important employee benefits at Chesapeake. It also offes employee and dependent medical and dental insurance coverage, prescription drug benefits, vision care plan, medical expense reimbursement and dependent care reimbursement plan. In addition, there is an Employee Assistance Program, employee basic life insurance coverage, company paid short- and long-term disability coverage and supplemental voluntary life insurance for employees and dependents. Chesapeake 's 401(k) plan and matching contribution program is one of the most generous in the industry. Chesapeake sponsors a qualified 401(k) savings plan and a nonqualified deferred compensation plan through which the company matches 100% up to 15% of the employee's annual compensation with company stock. Updated February 22, 2008 |