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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 2.

Earnings Per Share

Basic earnings per share (EPS) is calculated using the weighted average number of common shares outstanding during the period and includes the effect of any participating securities as appropriate. Participating securities consist of unvested restricted stock issued to our employees and non-employee directors that provide dividend rights. Diluted EPS is calculated assuming the issuance of common shares for all potentially dilutive securities, provided the effect is not antidilutive. For the years ended December 31, 2016, 2015 and 2014, our contingent convertible senior notes did not have a dilutive effect and therefore were excluded from the calculation of diluted EPS. See Note 3 for further discussion of our convertible notes and contingent convertible senior notes. For the years ended December 31, 2016, 2015 and 2014, shares of common stock for the following dilutive securities were excluded from the calculation of diluted EPS as the effect was antidilutive. Shares (in millions) Year Ended December 31, 2016 Common stock equivalent of our preferred stock outstanding: 5.75% cumulative convertible preferred stock ........................................................................... 5.75% cumulative convertible preferred stock (series A) ........................................................... 5.00% cumulative convertible preferred stock (series 2005B) ................................................... 4.50% cumulative convertible preferred stock ........................................................................... Participating securities .................................................................................................................. Common stock equivalent of our convertible senior notes outstanding: 5.5% convertible senior notes .................................................................................................... Common stock equivalent of our preferred stock outstanding prior to exchange: 5.75% cumulative convertible preferred stock exchanged ......................................................... 5.75% cumulative convertible preferred stock (series A) exchanged ......................................... 5.00% cumulative convertible preferred stock (series 2005B) exchanged .................................

34 18 5 6 1 146

19 18 —

Year Ended December 31, 2015 Common stock equivalent of our preferred stock outstanding: 5.75% cumulative convertible preferred stock ........................................................................... 5.75% cumulative convertible preferred stock (series A) ........................................................... 5.00% cumulative convertible preferred stock (series 2005B) ................................................... 4.50% cumulative convertible preferred stock ........................................................................... Participating securities ..................................................................................................................

59 42 6 6 1

Year Ended December 31, 2014 Participating securities ..................................................................................................................

3

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Profile for Chesapeake Energy

2016 Annual Report  

2016 Annual Report