Chesapeake Energy and Bronco Drilling Company MOU

Chesapeake Energy Corporation (Public, NYSE:CHK). Last Market Price: 29.76, Change: +0.67, % Change: (2.30%). Shares trade in the range of 29.09 – 29.77 dollars. It has a market capitalization of 19.61B dollars and has 659.02M outstanding shares. The company has a beta of 1.24, indicating, the stock to be more volatile than the market. As per the most recent quarterly report, the net income per share (EPS) is 0.91; P/E of 32.68. It operates in Energy sector and belongs to Oil and Gas Operations industry. Chesapeake Energy Corporation (Chesapeake) is a producer of natural gas in the United States. The company has a 52 week high of $ 35.95 and a 52 week low of $ 19.62. Average volumes of shares traded daily are 10.67M. Volume traded in the last session was at 1.60M, 0.15 times the average volume.

• Chesapeake Energy and Bronco Drilling Company (BRNC) announce entry into a memorandum of understanding in shareholder lawsuit.

Pursuant to the memorandum of understanding, Chesapeake and Bronco have entered into an amendment to the pending merger agreement and Nomac Acquisition, Inc., Chesapeake’s indirect wholly owned subsidiary, has extended its cash tender offer to purchase all outstanding shares of common stock of Bronco. The cash tender offer was previously scheduled to expire at 12:00 midnight, New York City time, on Monday, May 23, 2011 and will now expire at 12:00 midnight, New York City time, on Tuesday, May 31, 2011, unless further extended in accordance with the merger agreement, applicable rules and regulations and the procedures described in the Offer to Purchase. Pursuant to the cash tender offer, Nomac Acquisition, Inc. is offering to purchase all outstanding Bronco shares for $11.00 per share in cash, without interest and less any required withholding taxes.

Consensus Recommendation is a Outperform.

Estimate for sales for the quarter ending June 11 show a mean of 2,447.65 million dollars, an estimate high of 2,854.10 million dollars and an estimate low of 1,672.30 million dollars. A year ago the figures stood at 2,864.10 million dollars.

Estimate for EPS for the quarter ending June 11 show a mean of 0.71 dollars, an estimate high of 0.86 dollars and an estimate low of 0.55 dollars. A year ago, for the same period, the figures stood at 0.74 dollars.

Sales for Quarter Ending Mar 11 was estimated at 2,601.76 million dollars, however the actual sales figure stood at 1,612.00 million dollars, 989.76 million dollars lower than estimates.

For Q1 (Mar ’11), it had a Net profit margin of -10.05%, an operating margin of -17.74%. Other Key stats and ratios include Return on average assets of -1.81%, Return on average equity of -6.82%. The total employee strength is of 10,000.

Senior management consists of Aubrey K. McClendon, aged 51, as Chairman of the Board, Chief Executive Officer, Domenic J. Dell’Osso, aged 34, as Chief Financial Officer, Senior Vice President and Steven C. Dixon, aged 52, as Chief Operating Officer, Executive Vice President – Operations and Geosciences.