Filed pursuant to Rule 424 (b) (3)
Registration No. 331-116461
313,250 SHARES
OF
CHESAPEAKE ENERGY CORPORATION
4.125% CUMULATIVE CONVERTIBLE PREFERRED STOCK
(LIQUIDATION PREFERENCE $1,000 PER SHARE)
AND
COMMON STOCK,
(PAR VALUE $.01 PER SHARE)
PROSPECTUS SUPPLEMENT NO. 2
---------------------------
DATED SEPTEMBER 23, 2004
TO PROSPECTUS DATED JULY 8, 2004
The selling securityholders table on pages 36 through 38 of the
prospectus is amended by this supplement no. 2 to read as follows.
Number of Number of Number of
Shares of Shares of Shares of
Preferred Number of Preferred Number of Number of Common Stock
Stock Shares of Stock to be Shares of Shares of to be Owned
Beneficially Preferred Owned After Common Stock Common Stock After
Owned Prior Stock Being Completion Beneficially Being Completion
to the Offered of the Owned Prior to Offered of the
Name Offering Hereby Offering Offering* Hereby* Offering
---- ------------ ----------- ----------- -------------- ------------ ------------
Alexian Brother Medical Center 350 350 0 21,019 21,019 0
Aloha Airlines Non-Pilots Pension Trust 215 215 0 12,912 12,912 0
Aloha Pilots Retirement Trust 110 110 0 6,606 6,606 0
Argent LowLev Convertible Arbitrage Fund LLC 780 780 0 46,843 46,843 0
Argent Classic Convertible Arbitrage Fund
(Bermuda) Ltd. 3,110 3,110 0 186,773 186,773 0
Argent Classic Convertible Arbitrage Fund II, L.P. 100 100 0 6,006 6,006 0
Argent Classic Convertible Arbitrage Fund L.P. 570 570 0 34,232 34,232 0
Argent LowLev Convertible Arbitrage Fund II, L.L.C. 120 120 0 7,207 7,207 0
Argent LowLev Convertible Arbitrage Fund Ltd. 4,215 4,215 0 253,134 253,134 0
AstraZeneca Holdings Pension 550 550 0 33,031 33,031 0
Arkansas PERS 1,825 1,825 0 109,601 109,601 0
Aubrey K. McClendon (1) 10,000 10,000 0 16,525,412 600,555 15,924,857
Aviator Master Fund, Ltd. 8,250 8,250 0 495,458 495,458 0
Banc of America Securities LLC 3,000 3,000 0 1,346,867 180,167 1,166,700
Bancroft Convertible Fund, Inc. (2) 1,000 1,000 0 84,358 60,056 24,303
Barclays Global Investors Equity Hedge Fund II 78 78 0 4,684 4,684 0
Boilermakers Blacksmith Pension Trust 2,950 2,950 0 177,164 177,164 0
C & H Sugar Company Inc. 260 260 0 15,614 15,614 0
Chrysler Corporation Master Retirement Trust 5,000 5,000 0 300,278 300,278 0
CitiGroup Global Markets Ltd 21,000 21,000 0 1,261,166 1,261,166 0
Class C Trading Ltd. 370 370 0 22,221 22,221 0
Convertible Securities Fund (2) 100 100 0 13,547 6,006 7,541
Credit Suisse First Boston Europe Limited 90 90 0 5,405 5,405 0
Custom Investments PCC, Ltd. 90 90 0 5,405 5,405 0
Delaware PERS 1,050 1,050 0 63,058 63,058 0
Delta Air Lines Master Trust - CV 1,700 1,700 0 102,094 102,094 0
Delta Airlines Master Trust 630 630 0 37,835 37,835 0
Delta Pilots Disability & Survivorship Trust - CV 800 800 0 48,044 48,044 0
Duke Endowment 650 650 0 39,036 39,036 0
Ellsworth Convertible Growth and
Income Fund, Inc. (2) 1,000 1,000 0 120,812 60,056 60,756
F.M. Kirby Foundation, Inc. 1,400 1,400 0 84,078 84,078 0
FTIF Franklin Income Fund 5,000 5,000 0 300,278 300,278 0
FTVIPT Franklin Income Securities Fund 5,000 5,000 0 300,278 300,278 0
Goldman Sachs & Co. (2) 3,000 3,000 0 1,716,018 180,167 1,535,851
Hawaiian Airlines Employees Pension Plan-IAM 65 65 0 3,904 3,904 0
Hawaiian Airlines Pilots Retirement Plan 200 200 0 12,011 12,011 0
Hawaiian Airlines Pilots Retirement Plan
for Salaried Employees 10 10 0 601 601 0
HFR CA Global Select Master Trust Account 150 150 0 9,008 9,008 0
ICI American Holdings Trust 400 400 0 24,022 24,022 0
International Truck & Engine Corporation 700 700 0 42,039 42,039 0
Non-Contributory Retirement Plan Trust
International Truck & Engine Corporation
Retiree Health Benefit Trust 300 300 0 18,017 18,017 0
International Truck & Engine Corporation
Retirement Plan for Salaried Employees Trust 500 500 0 30,028 30,028 0
JMG Capital Partners, L.P. (2) 6,187 6,187 0 939,027 371,563 567,463
JMG Triton Offshore Fund, Ltd. (2) 10,313 10,313 0 1,254,863 619,352 635,510
KBC Convertible MAC28 Ltd 800 800 0 48,044 48,044 0
KBC Convertible Opportunities Fund 4,400 4,400 0 264,244 264,244 0
KBC Multi-Strategy Arbitrage Fund (2) 3,400 3,400 0 1,296,475 204,189 1,092,287
Lehman Brothers Inc. 31,885 31,885 0 1,914,870 1,914,870 0
Lyxor Master Fund 740 740 0 44,441 44,441 0
Melody AIM Ltd 400 400 0 24,022 24,022 0
Microsoft Corporation 1,600 1,600 0 96,089 96,089 0
Motion Picture Industry Health Plan -
Active Member Fund 140 140 0 8,408 8,408 0
Motion Picture Industry Health Plan -
Retiree Member Fund 110 110 0 6,606 6,606 0
Nabors Industries, Ltd. 10,000 10,000 0 600,555 600,555 0
Nations Convertible Securities Fund (2) 10,000 10,000 0 1,659,079 600,555 1,058,524
Nuveen Preferred & Convertible Fund JQC 8,955 8,955 0 537,797 537,797 0
Nuveen Preferred & Convertible Income Fund JPC 6,725 6,725 0 403,873 403,873 0
Oak Hill Contingent Capital Fund Ltd. 2,000 2,000 0 120,111 120,111 0
OCLC Online Computer Library Center 55 55 0 3,303 3,303 0
OCM Convertible Trust 3,300 3,300 0 198,183 198,183 0
OCM Global Convertible Securities Fund 100 100 0 6,006 6,006 0
Oppenheimer Convertible Securities Fund 5,000 5,000 0 300,278 300,278 0
Partner Reinsurance Company of the U.S. 1,000 1,000 0 60,056 60,056 0
Prudential Insurance Co of America 100 100 0 6,006 6,006 0
Qwest Occupational Health Trust 300 300 0 18,017 18,017 0
RBC Alternative Assets - Convertible Arbitrage 300 300 0 30,169 18,017 12,152
Relay 3 Asset Holding Co. Limited 39 39 0 2,342 2,342 0
Scorpion Offshore Investment Fund, Ltd. 337 337 0 20,239 20,239 0
Silver Convertible Arbitrage Fund, LDC 360 360 0 21,620 21,620 0
SP Holdings Ltd. 84 84 0 5,045 5,045 0
Standard Global Equity Partners II, L.P. 57 57 0 3,423 3,423 0
Standard Global Equity Partners, L.P. 1,255 1,255 0 75,370 75,370 0
Standard Global Equity Partners, SA, L.P. 598 598 0 35,913 35,913 0
Standard Pacific Capital Offshore Fund, Ltd. 4,803 4,803 0 288,447 288,447 0
Standard Pacific MAC 16 Ltd. 249 249 0 14,954 14,954 0
State Employees' Retirement Fund of the
State of Delaware 2,000 2,000 0 120,111 120,111 0
State of Oregon/Equity 5,515 5,515 0 331,206 331,206 0
State of Oregon/SAIF Corporation 5,215 5,215 0 313,189 313,189 0
Syngenta AG 300 300 0 18,017 18,017 0
The St. Paul Travelers Companies, Inc. -
Commercial Lines 1,100 1,100 0 66,061 66,061 0
The St. Paul Travelers Companies, Inc. -
Personal Lines 700 700 0 42,039 42,039 0
Tom L. Ward (3) 10,000 10,000 0 18,067,821 600,555 17,467,266
Univest Multi-Strategy - Convertible Arbitrage 225 225 0 23,233 13,512 9,721
UnumProvident Corporation 500 500 0 30,028 30,028 0
US Bank FBO Benedictine Health Systems 360 360 0 21,620 21,620 0
Value Line Convertible Fund, Inc. 250 250 0 15,014 15,014 0
Vanguard Convertible Securities Fund, Inc. 15,200 15,200 0 912,844 912,844 0
WPG Convertible Arbitrage Overseas Master Fund 475 475 0 116,015 28,526 87,489
Xavex Convertible Arbitrage 10 Fund 220 220 0 13,212 13,212 0
Xavex Convertible Arbitrage 2 Fund 230 230 0 13,813 13,813 0
* Includes common stock issuable upon conversion of Chesapeake's 4.125%
Cumulative Convertible Preferred Stock at a conversion rate of 60.0555 shares of
common stock per share of preferred stock.
(1) Mr. McClendon is our Chief Executive Officer. The number of shares of Common
Stock indicated to be beneficially owned by him prior to and after completion of
the offering includes 3,045,545 shares underlying stock options exercisable
within 60 days of the date hereof and 1,848,640 shares underlying convertible
securities. The number of shares of Common Stock indicated to be beneficially
owned by him after completion of the offering represents approximately 6.4% of
the total outstanding shares of common stock as of June 10, 2004.
(2) The number of shares of Common Stock indicated to be beneficially owned
after completion of the offering includes shares issuable within 60 days of the
date hereof upon conversion of convertible securities.
3) Mr. Ward is our Chief Operating Officer. The number of shares of Common Stock
indicated to be beneficially owned by him prior to and after completion of the
offering includes 5,570,103 shares underlying stock options exercisable within
60 days of the date hereof and 1,848,640 shares underlying convertible
securities. The number of shares of Common Stock indicated to be beneficially
owned by him after completion of the offering represents approximately 7.0% of
the total outstanding shares of common stock as of June 10, 2004.