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,
on behalf of its Multi Strategy Segregated Portfolio

 

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
Citigroup Alternative Investments Diversified Arbitrage Strategies Fund Ltd.

 

742,000

 

742,000

 

0

 

18,992

 

18,992

 

0

Saranac Capital Management LP on behalf of
Citigroup Alternative Investments QIP Multi-Strategy Arbitrage Portfolio

 

1,469,000

 

1,469,000

 

0

 

37,599

 

37,599

 

0

Saranac Capital Management LP on behalf of
Saranac Arbitrage LTD

 

305,000

 

305,000

 

0

 

7,807

 

7,807

 

0

Saranac Capital Management LP on behalf of
Saranac Erisa Arbitrage LTD

 

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