Chesapeake Energy Corporation to Acquire Bronco Drilling Company for $11 per Share Totaling $315M

Chesapeake Energy Corporation CHK and Bronco Drilling Company, Inc. BRNC today announced that they have entered into a definitive agreement for Chesapeake to acquire Bronco for approximately $315 million, including debt, net working capital and outstanding warrants. Under the agreement, Chesapeake will make a cash tender offer to acquire all outstanding shares of Bronco's common stock at a price of $11.00 per share. The $11.00 per share purchase price represents premiums of 6% and 24% over the closing price of Bronco's common stock on the NASDAQ on April 14, 2011 and the average closing price for the 90-calendar day period ending on April 14, 2011, respectively.