Filed pursuant to Rule 424 (b) (3)
Registration No. 333-132261
$600,000,000
of
Chesapeake Energy Corporation
2.75% Contingent Convertible Senior Notes due 2035
(Liquidation Preference $100 per share)
and
Common Stock
(Par Value $.01 per share)
PROSPECTUS SUPPLEMENT NO. 1
DATED May 9, 2006
TO PROSPECTUS DATED March 7, 2006
The selling securityholders table on pages 61hrough 63 of the prospectus is amended by this supplement no. 1 to read as follows.
SECURITYHOLDER |
|
Principal Amount of Notes Beneficially Owned Prior to the Offering |
|
Principal Amount of Notes Being Offered Hereby |
|
Principal Amount of Notes to be Owned After Completion of the Offering |
|
Number of Shares of Common Stock Beneficially Owned Prior to the Offering (1) |
|
Number of Shares of Common Stock Being Offered Hereby (1) |
| Number of Shares of Common Stock to be Owned After Completion of the Offering (1) |
Advent Convertible Master Cayman |
| 4,020,000 |
| 4,020,000 |
| 0 |
| 102,892 |
| 102,892 |
| 0 |
Allstate Insurance Company |
| 1,000,000 |
| 1,000,000 |
| 0 |
| 327,990 |
| 25,595 |
| 302,395 |
Aloha Airlines Non-Pilots Pension Trust |
| 10,000 |
| 10,000 |
| 0 |
| 256 |
| 256 |
| 0 |
Alpine Associates |
| 10,026,000 |
| 10,026,000 |
| 0 |
| 256,616 |
| 256,616 |
| 0 |
Alpine Partners, L.P. |
| 1,364,000 |
| 1,364,000 |
| 0 |
| 34,912 |
| 34,912 |
| 0 |
American Investors Life Insurance Company |
| 1,500,000 |
| 1,500,000 |
| 0 |
| 38,393 |
| 38,393 |
| 0 |
Argent Classic Convertible Arbitrage Fund (Bermuda) Ltd. |
| 880,000 |
| 880,000 |
| 0 |
| 22,524 |
| 22,524 |
| 0 |
Argent LowLev Convertible Arbitrage Fund II, LLC |
| 150,000 |
| 150,000 |
| 0 |
| 3,839 |
| 3,839 |
| 0 |
Argent LowLev Convertible Arbitrage Fund Ltd. |
| 5,120,000 |
| 5,120,000 |
| 0 |
| 131,047 |
| 131,047 |
| 0 |
Argent LowLev Convertible Arbitrage Fund, LLC |
| 880,000 |
| 880,000 |
| 0 |
| 22,524 |
| 22,524 |
| 0 |
Aristeia International Limited |
| 47,300,000 |
| 47,300,000 |
| 0 |
| 1,210,648 |
| 1,210,648 |
| 0 |
Aristeia Partners LP |
| 7,700,000 |
| 7,700,000 |
| 0 |
| 197,082 |
| 197,082 |
| 0 |
Arkansas PERS |
| 315,000 |
| 315,000 |
| 0 |
| 8,062 |
| 8,062 |
| 0 |
AstraZenca Holdings Pension |
| 40,000 |
| 40,000 |
| 0 |
| 1,024 |
| 1,024 |
| 0 |
Bank of America Pension Plan |
| 2,500,000 |
| 2,500,000 |
| 0 |
| 63,988 |
| 63,988 |
| 0 |
Barnet Partners, Ltd. |
| 12,200,000 |
| 12,200,000 |
| 0 |
| 312,260 |
| 312,260 |
| 0 |
BNP Paribas Arbitrage |
| 25,000,000 |
| 25,000,000 |
| 0 |
| 639,878 |
| 639,878 |
| 0 |
Boilermakers Blacksmith Pension Trust |
| 425,000 |
| 425,000 |
| 0 |
| 10,878 |
| 10,878 |
| 0 |
Canadian Imperial Holdings, Inc. |
| 10,000,000 |
| 10,000,000 |
| 0 |
| 255,951 |
| 255,951 |
| 0 |
CBARB, a segregated account of Geode Capital Master Fund Ltd., an open-ended exempted mutual fund company registered as a segregated accounts company under the laws of Bermuda |
| 2,000,000 |
| 2,000,000 |
| 0 |
| 51,190 |
| 51,190 |
| 0 |
Citadel Equity Fund Ltd. |
| 82,500,000 |
| 82,500,000 |
| 0 |
| 2,111,596 |
| 2,111,596 |
| 0 |
Class C Trading Company LTD |
| 100,000 |
| 100,000 |
| 0 |
| 2,560 |
| 2,560 |
| 0 |
CNH CA Master Account, L.P. |
| 42,500,000 |
| 42,500,000 |
| 0 |
| 1,087,792 |
| 1,087,792 |
| 0 |
Columbia Convertible Securities Fund |
| 3,231,000 |
| 3,231,000 |
| 0 |
| 526,263 |
| 82,698 |
| 443,566 |
Continental Assurance Company on behalf of its Separate Account E |
| 2,300,000 |
| 2,300,000 |
| 0 |
| 58,869 |
| 58,869 |
| 0 |
Convertible Securities Fund |
| 19,000 |
| 19,000 |
| 0 |
| 1,618 |
| 486 |
| 1,132 |
Daimler Chrysler Corp Emp. #1 Pension Plan, dtd 4/1/89 |
| 1,215,000 |
| 1,215,000 |
| 0 |
| 31,098 |
| 31,098 |
| 0 |
DBAG London |
| 10,624,000 |
| 10,624,000 |
| 0 |
| 524,194 |
| 271,922 |
| 252,272 |
Delaware PERS |
| 185,000 |
| 185,000 |
| 0 |
| 4,735 |
| 4,735 |
| 0 |
Delta Airlines Master Trust |
| 90,000 |
| 90,000 |
| 0 |
| 2,304 |
| 2,304 |
| 0 |
Deutsche Bank Securities Inc. |
| 1,150,000 |
| 1,150,000 |
| 0 |
| 3,354,631 |
| 29,434 |
| 3,325,196 |
DKR Soundshore Oasis Holding Fund Ltd. |
| 1,750,000 |
| 1,750,000 |
| 0 |
| 44,791 |
| 44,791 |
| 0 |
Empyrean Capital Fund, LP |
| 6,164,000 |
| 6,164,000 |
| 0 |
| 157,768 |
| 157,768 |
| 0 |
Empyrean Capital Overseas Benefit Plan Fund, Ltd |
| 1,191,000 |
| 1,191,000 |
| 0 |
| 30,484 |
| 30,484 |
| 0 |
Empyrean Capital Overseas Fund, Ltd |
| 10,145,000 |
| 10,145,000 |
| 0 |
| 259,662 |
| 259,662 |
| 0 |
Forest Fulcrum Fund L.P. |
| 939,000 |
| 939,000 |
| 0 |
| 108,852 |
| 24,034 |
| 84,818 |
Forest Global Convertible Fund, Ltd., Class A-5 |
| 1,361,000 |
| 1,361,000 |
| 0 |
| 158,658 |
| 34,835 |
| 123,823 |
Forest Multi-Strategy Master Fund SPC, |
| 397,000 |
| 397,000 |
| 0 |
| 147,024 |
| 10,161 |
| 136,863 |
FPL Group Employees Pension Plan |
| 245,000 |
| 245,000 |
| 0 |
| 6,271 |
| 6,271 |
| 0 |
Franklin and Marshall College |
| 30,000 |
| 30,000 |
| 0 |
| 768 |
| 768 |
| 0 |
FrontPoint Convertible Arbitrage Fund, L.P. |
| 6,000,000 |
| 6,000,000 |
| 0 |
| 153,571 |
| 153,571 |
| 0 |
Goldman Sachs & Co. |
| 3,000,000 |
| 3,000,000 |
| 0 |
| 956,025 |
| 76,785 |
| 879,240 |
Good Steward Trading Co, SPC Class F |
| 118,000 |
| 118,000 |
| 0 |
| 3,020 |
| 3,020 |
| 0 |
Grace Convertible Arbitrage Fund, Ltd. |
| 2,000,000 |
| 2,000,000 |
| 0 |
| 127,975 |
| 51,190 |
| 76,785 |
Greywolf Capital Overseas Fund |
| 15,525,000 |
| 15,525,000 |
| 0 |
| 397,364 |
| 397,364 |
| 0 |
Greywolf Capital Partners II LP |
| 6,975,000 |
| 6,975,000 |
| 0 |
| 178,526 |
| 178,526 |
| 0 |
Hallmark Convertible Securities Fund |
| 20,000 |
| 20,000 |
| 0 |
| 512 |
| 512 |
| 0 |
HFR CA Global Opportunity Master Trust |
| 314,000 |
| 314,000 |
| 0 |
| 8,037 |
| 8,037 |
| 0 |
HFR CA Global Select Master Trust Account |
| 960,000 |
| 960,000 |
| 0 |
| 24,571 |
| 24,571 |
| 0 |
HFR CA Select Fund |
| 700,000 |
| 700,000 |
| 0 |
| 17,917 |
| 17,917 |
| 0 |
HFR RVA Select Performance Master Trust |
| 135,000 |
| 135,000 |
| 0 |
| 53,219 |
| 3,455 |
| 49,763 |
HSBC Investments (USA) Inc. a/c HSBC Multi Strategy Arbitrage Fund |
| 1,000,000 |
| 1,000,000 |
| 0 |
| 25,595 |
| 25,595 |
| 0 |
ICI American Holdings Trust |
| 70,000 |
| 70,000 |
| 0 |
| 1,792 |
| 1,792 |
| 0 |
Inflective Convertible Opportunity Fund I, L.P. |
| 5,000,000 |
| 5,000,000 |
| 0 |
| 127,976 |
| 127,976 |
| 0 |
Inflective Convertible Opportunity Fund I, LTD |
| 2,000,000 |
| 2,000,000 |
| 0 |
| 51,190 |
| 51,190 |
| 0 |
Institutional Benchmark Series (Master Feeder) Ltd. |
| 1,000,000 |
| 1,000,000 |
| 0 |
| 25,595 |
| 25,595 |
| 0 |
Jefferies & Co. Inc. |
| 1,200,000 |
| 1,200,000 |
| 0 |
| 69,525 |
| 30,714 |
| 38,811 |
JMG Capital Partners, LP |
| 21,500,000 |
| 21,500,000 |
| 0 |
| 550,295 |
| 550,295 |
| 0 |
JMG Triton Offshore Fund, Ltd. |
| 23,000,000 |
| 23,000,000 |
| 0 |
| 588,687 |
| 588,687 |
| 0 |
KBC Financial Products (Cayman Islands) Ltd. |
| 3,000,000 |
| 3,000,000 |
| 0 |
| 76,785 |
| 76,785 |
| 0 |
KBC Financial Products USA, Inc. |
| 5,000,000 |
| 5,000,000 |
| 0 |
| 127,976 |
| 127,976 |
| 0 |
LDG Limited |
| 595,000 |
| 595,000 |
| 0 |
| 15,229 |
| 15,229 |
| 0 |
Lehman Brothers, Inc. |
| 14,500,000 |
| 14,500,000 |
| 0 |
| 1,289,304 |
| 371,129 |
| 918,175 |
Lydian Global Opportunities Master Fund Limited |
| 15,000,000 |
| 15,000,000 |
| 0 |
| 383,927 |
| 383,927 |
| 0 |
Lydian Overseas Partners Master Fund L.P. I |
| 32,500,000 |
| 32,500,000 |
| 0 |
| 831,841 |
| 831,841 |
| 0 |
Lyxor Convertible Arbitrage Fund |
| 111,000 |
| 111,000 |
| 0 |
| 2,841 |
| 2,841 |
| 0 |
Lyxor Master Fund Ref: Argent /LowLev CB c/o Argent |
| 2,920,000 |
| 2,920,000 |
| 0 |
| 74,738 |
| 74,738 |
| 0 |
Lyxor/Forest Fund Limited |
| 2,909,000 |
| 2,909,000 |
| 0 |
| 313,955 |
| 74,456 |
| 239,499 |
Lyxor/Inflective Convertible Opportunity Fund |
| 2,000,000 |
| 2,000,000 |
| 0 |
| 51,190 |
| 51,190 |
| 0 |
2
MSS Convertible Arbitrage I |
| 59,000 |
| 59,000 |
| 0 |
| 1,510 |
| 1,510 |
| 0 |
Nuveen Preferred & Convertible Income Fund JPC |
| 1,175,000 |
| 1,175,000 |
| 0 |
| 30,074 |
| 30,074 |
| 0 |
OCLC Online Computer Library Center, Inc. |
| 10,000 |
| 10,000 |
| 0 |
| 256 |
| 256 |
| 0 |
Nomura Securities International, Inc. |
| 10,000,000 |
| 10,000,000 |
| 0 |
| 308,851 |
| 255,951 |
| 52,900 |
Nuveen Preferred & Convertible Fund JQC |
| 1,600,000 |
| 1,600,000 |
| 0 |
| 40,952 |
| 40,952 |
| 0 |
OZ Master Fund, Ltd. |
| 41,500,000 |
| 41,500,000 |
| 0 |
| 1,062,197 |
| 1,062,197 |
| 0 |
Peoples Benefit Life Insurance Company Teamsters |
| 5,500,000 |
| 5,500,000 |
| 0 |
| 140,773 |
| 140,773 |
| 0 |
Prudential Insurance Co. of America |
| 20,000 |
| 20,000 |
| 0 |
| 512 |
| 512 |
| 0 |
Radcliffe SPC, Ltd. for and on behalf of the Class A Convertible Crossover Segregated Portfolio |
| 23,750,000 |
| 23,750,000 |
| 0 |
| 607,884 |
| 607,884 |
| 0 |
Rampart Convertible Arbitrage Investors, L.L.C. |
| 3,000,000 |
| 3,000,000 |
| 0 |
| 76,785 |
| 76,785 |
| 0 |
Rampart Enhanced Convertible L.L.C. |
| 265,000 |
| 265,000 |
| 0 |
| 6,783 |
| 6,783 |
| 0 |
Recon Arbitrage Master Fund Ltd. |
| 2,000,000 |
| 2,000,000 |
| 0 |
| 51,190 |
| 51,190 |
| 0 |
Redbourn Partners Ltd |
| 8,000,000 |
| 8,000,000 |
| 0 |
| 204,761 |
| 204,761 |
| 0 |
San Diego County Employees Retirement Association |
| 2,500,000 |
| 2,500,000 |
| 0 |
| 63,988 |
| 63,988 |
| 0 |
Sandelman Partners Multi-Strategy Master Fund, Ltd. |
| 11,000,000 |
| 11,000,000 |
| 0 |
| 515,896 |
| 281,546 |
| 234,350 |
Saranac Arbitrage LTD |
| 305,000 |
| 305,000 |
| 0 |
| 7,807 |
| 7,807 |
| 0 |
Saranac Capital Management LP on behalf of |
| 742,000 |
| 742,000 |
| 0 |
| 18,992 |
| 18,992 |
| 0 |
Saranac Capital Management LP on behalf of |
| 1,469,000 |
| 1,469,000 |
| 0 |
| 37,599 |
| 37,599 |
| 0 |
Saranac Capital Management LP on behalf of |
| 305,000 |
| 305,000 |
| 0 |
| 7,807 |
| 7,807 |
| 0 |
Saranac Capital Management LP on behalf of |
| 484,000 |
| 484,000 |
| 0 |
| 12,388 |
| 12,388 |
| 0 |
Satellite Convertible Arbitrage Master Fund LLC |
| 5,000,000 |
| 5,000,000 |
| 0 |
| 127,976 |
| 127,976 |
| 0 |
Silver Convertible Arbitrage Fund, LDC |
| 660,000 |
| 660,000 |
| 0 |
| 16,893 |
| 16,893 |
| 0 |
Sphinx Convertible Arbitrage SPC |
| 1,218,000 |
| 1,218,000 |
| 0 |
| 116,714 |
| 31,175 |
| 85,539 |
Sphinx Fund c/o TQA Investors |
| 1,123,000 |
| 1,123,000 |
| 0 |
| 40,952 |
| 28,743 |
| 12,209 |
State of Oregon/Equity |
| 905,000 |
| 905,000 |
| 0 |
| 23,164 |
| 23,164 |
| 0 |
Syngenta AG |
| 50,000 |
| 50,000 |
| 0 |
| 1,280 |
| 1,280 |
| 0 |
TQA Master Fund |
| 6,985,000 |
| 6,985,000 |
| 0 |
| 269,490 |
| 178,782 |
| 90,709 |
TQA Master Plus Fund |
| 2,864,000 |
| 2,864,000 |
| 0 |
| 121,679 |
| 73,304 |
| 48,375 |
UBS AG London |
| 12,500,000 |
| 12,500,000 |
| 0 |
| 319,939 |
| 319,939 |
| 0 |
UBS Securities LLC |
| 8,500,000 |
| 8,500,000 |
| 0 |
| 217,558 |
| 217,558 |
| 0 |
Vicis Capital Master Fund |
| 5,000,000 |
| 5,000,000 |
| 0 |
| 127,976 |
| 127,976 |
| 0 |
Wachovia Bank National Association |
| 30,000,000 |
| 30,000,000 |
| 0 |
| 767,853 |
| 767,853 |
| 0 |
Wachovia Securities International Ltd |
| 14,000,000 |
| 14,000,000 |
| 0 |
| 358,331 |
| 358,331 |
| 0 |
Waterstone Market Neutral Mac 51, Ltd. |
| 1,585,000 |
| 1,585,000 |
| 0 |
| 93,294 |
| 40,568 |
| 52,726 |
Waterstone Market Neutral Master Fund, Ltd. |
| 8,415,000 |
| 8,415,000 |
| 0 |
| 495,392 |
| 215,383 |
| 280,009 |
Xavex Convertible Arbitrage 2 Fund |
| 330,000 |
| 330,000 |
| 0 |
| 8,446 |
| 8,446 |
| 0 |
Yield Strategies Fund I, L.P. |
| 2,000,000 |
| 2,000,000 |
| 0 |
| 51,190 |
| 51,190 |
| 0 |
Yield Strategies Fund II, L.P. |
| 2,000,000 |
| 2,000,000 |
| 0 |
| 51,190 |
| 51,190 |
| 0 |
Zazove Convertible Arbitrage Fund, L.P. |
| 6,605,000 |
| 6,605,000 |
| 0 |
| 169,056 |
| 169,056 |
| 0 |
Zazove Hedged Convertible Fund, L.P. |
| 3,000,000 |
| 3,000,000 |
| 0 |
| 76,785 |
| 76,785 |
| 0 |
Zurich Institutional Benchmarks Master Fund |
| 1,703,000 |
| 1,703,000 |
| 0 |
| 70,412 |
| 43,588 |
| 26,824 |
* Includes common stock issuable within 60 days of the date hereof upon conversion of our convertible securities.
(1) Includes common stock issuable upon conversion of our 2.75% Contingent Convertible Senior Notes due 2035 at a conversion rate of approximately 25.5951 shares of common stock per $1,000 principal amount of notes.
3