Filed pursuant to Rule 424 (b) (3)

 

Registration No. 333-132262

5,750,000 Shares

of

Chesapeake Energy Corporation

5.00% Cumulative Convertible Preferred Stock (Series 2005B)

(Liquidation Preference $100 per share)

and

Common Stock

(Par Value $.01 per share)

 

PROSPECTUS SUPPLEMENT NO. 2

DATED August 30, 2006

TO PROSPECTUS DATED March 7, 2006

 

The selling securityholders table on pages 43 through 45 of the prospectus is amended by this supplement no. 2 to read as follows.

 

NAME

 

Number of Shares of Preferred Stock Beneficially Owned Prior to the Offering

 

Number of Shares of Preferred Stock Being Offered Hereby

 

Number of Shares of Preferred Stock 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)

Akanthos Arbitrage Master Fund, LP

 

500,000

 

500,000

 

0

 

2,110,450

 

1,279,750

 

830,700

Aloha Airlines Non-Pilots Pension Trust

 

100

 

100

 

0

 

256

 

256

 

0

Argent Classic Convertible Arbitrage Fund II, L.P.

 

6,700

 

6,700

 

0

 

17,149

 

17,149

 

0

Argent Classic Convertible Arbitrage Fund L.P.

 

15,270

 

15,270

 

0

 

39,084

 

39,084

 

0

Argent LowLev Convertible Arbitrage Fund II, LLC

 

3,200

 

3,200

 

0

 

8,190

 

8,190

 

0

Argent LowLev Convertible Arbitrage Fund LLC

 

21,370

 

21,370

 

0

 

54,697

 

54,697

 

0

Aristeia International Limited

 

75,250

 

75,250

 

0

 

192,602

 

192,602

 

0

Aristeia Partners LP

 

12,250

 

12,250

 

0

 

31,354

 

31,354

 

0

Arkansas PERS

 

9,575

 

9,575

 

0

 

24,507

 

24,507

 

0

AstraZeneca Holdings Pension

 

1,210

 

1,210

 

0

 

3,097

 

3,097

 

0

Bank of America Pension Plan

 

75,000

 

75,000

 

0

 

191,963

 

191,963

 

0

Boilermakers Blacksmith Pension Trust

 

3,525

 

3,525

 

0

 

9,022

 

9,022

 

0

BP Amoco PLC Master Trust

 

24,916

 

24,916

 

0

 

63,773

 

63,773

 

0

CALAMOS Market Neutral Income Fund
CALAMOS Investment Trust

 

29,000

 

29,000

 

0

 

74,226

 

74,226

 

0

Canyon Value Realization Fund, L.P.

 

39,375

 

39,375

 

0

 

246,802

 

100,780

 

146,022

Canyon Value Realization MAC 18, Ltd. (RMF)

 

5,250

 

5,250

 

0

 

33,812

 

13,437

 

20,375

Chrysler Corporation Master Retirement Trust

 

111,400

 

111,400

 

0

 

316,597

 

285,128

 

31,468

 

 

 

 

Class C Trading Company

 

13,487

 

13,487

 

0

 

34,520

 

34,520

 

0

D.E. Shaw Valence Portfolios, L.L.C.

 

155,000

 

155,000

 

0

 

396,723

 

396,723

 

0

DBAG London

 

131,703

 

131,703

 

0

 

589,365

 

337,094

 

252,272

DeepRock & Co.

 

30,000

 

30,000

 

0

 

76,785

 

76,785

 

0

Delaware PERS

 

5,570

 

5,570

 

0

 

14,256

 

14,256

 

0

Delaware Public Employees Retirement System

 

32,000

 

32,000

 

0

 

113,261

 

81,904

 

31,357

Delta Air Lines Master Trust – CV

 

21,600

 

21,600

 

0

 

65,246

 

55,285

 

9,961

Delta Airlines Master Trust

 

775

 

775

 

0

 

1,984

 

1,984

 

0

Delta Pilots Disability & Survivorship Trust - CV

 

11,800

 

11,800

 

0

 

35,862

 

30,202

 

5,660

Deutsche Bank Securities, Inc.

 

242,500

 

242,500

 

0

 

3,945,875

 

620,679

 

3,325,196

Equity Overlay Fund, LLC

 

17,500

 

17,500

 

0

 

44,791

 

44,791

 

0

F. M. Kirby Foundation, Inc.

 

17,900

 

17,900

 

0

 

51,475

 

45,815

 

5,660

Fidelity Financial Trust:
Fidelity Convertible Securities Fund

 

149,600

 

149,600

 

0

 

1,197,932

 

382,901

 

815,031

FIST Convertible Securities Fund

 

170,000

 

170,000

 

0

 

435,115

 

435,115

 

0

Forest Fulcrum Fund LP

 

8,090

 

8,090

 

0

 

20,706

 

20,706

 

0

Forest Global Convertible Fund, Ltd., Class A-5

 

10,431

 

10,431

 

0

 

26,698

 

26,698

 

0

Forest Multi-Strategy Master Fund SPC, on behalf of its Multi-Strategy Segregated Portfolio

 

10,682

 

10,682

 

0

 

27,341

 

27,341

 

0

FPL Group Employees Pension Plan

 

1,625

 

1,625

 

0

 

4,159

 

4,159

 

0

Franklin Income Fund

 

900,000

 

900,000

 

0

 

2,303,550

 

2,303,550

 

0

FTIF Franklin Income Fund

 

50,000

 

50,000

 

0

 

127,975

 

127,975

 

0

FTVIP Income Securities Fund

 

100,000

 

100,000

 

0

 

255,950

 

255,950

 

0

GLG Market Neutral Fund

 

150,000

 

150,000

 

0

 

383,925

 

383,925

 

0

Hallmark Convertible Securities Fund

 

350

 

350

 

0

 

896

 

896

 

0

HFR CA Global Opportunity Master Trust

 

11,999

 

11,999

 

0

 

30,711

 

30,711

 

0

HFR RVA Select Performance Master Trust

 

3,660

 

3,660

 

0

 

9,368

 

9,368

 

0

Hotel Union & Hotel Industry of Hawaii
Pension Plan Master Trust

 

3,597

 

3,597

 

0

 

9,207

 

9,207

 

0

ICI American Holdings Trust

 

2,115

 

2,115

 

0

 

5,413

 

5,413

 

0

Inflective Convertible Opportunity Fund I, LP

 

21,000

 

21,000

 

0

 

53,750

 

53,750

 

0

Inflective Convertible Opportunity Fund Ltd.

 

65,000

 

65,000

 

0

 

166,368

 

166,368

 

0

Institutional Benchmarks Series Limited
in Respect of Centaur Series

 

1,750

 

1,750

 

0

 

11,271

 

4,479

 

6,792

Institutional Benchmarks Master Fund Ltd.

 

14,310

 

14,310

 

0

 

36,626

 

36,626

 

0

Institutional Benchmarks Series - IVAN Segregated Acct

 

10,000

 

10,000

 

0

 

25,595

 

25,595

 

0

International Truck & Engine Corporation
Non-Contributory Retirement Plan Trust

 

9,300

 

9,300

 

0

 

28,331

 

23,803

 

4,528

International Truck & Engine Corporation
Retiree Health Benefit Trust

 

5,700

 

5,700

 

0

 

16,853

 

14,589

 

2,264

International Truck & Engine Corporation
Retirement Plan for Salaried Employees Trust

 

5,400

 

5,400

 

0

 

15,632

 

13,821

 

1,811

JMG Capital Partners, LP

 

200,000

 

200,000

 

0

 

1,062,195

 

511,900

 

550,295

John Deere Pension Trust

 

27,500

 

27,500

 

0

 

70,386

 

70,386

 

0

JP Morgan Securities Inc.

 

1,500

 

1,500

 

0

 

3,839

 

3,839

 

0

LLT Limited

 

9,757

 

9,757

 

0

 

24,973

 

24,973

 

0

Lyxor l Forest Fund Limited

 

22,398

 

22,398

 

0

 

57,328

 

57,328

 

0

Lyxor/Inflective Convertible Opportunity Fund, Ltd.

 

20,000

 

20,000

 

0

 

51,190

 

51,190

 

0

McMahan Securities Co., L.P.

 

5,000

 

5,000

 

0

 

66,112

 

12,798

 

53,315

Microsoft Capital Group, L.P.

 

18,000

 

18,000

 

0

 

46,071

 

46,071

 

0

Morgan Stanley Capital Services Inc.

 

60,000

 

60,000

 

0

 

5,503,041

 

153,570

 

5,349,471

MSS Convertible Arbitrage I

 

1,310

 

1,310

 

0

 

4,863

 

3,353

 

1,510

Nuveen Preferred & Convertible Fund JQC

 

48,335

 

48,335

 

0

 

123,713

 

123,713

 

0

Nuveen Preferred & Convertible Income Fund JPC

 

35,460

 

35,460

 

0

 

90,760

 

90,760

 

0

OCLC Online Computer Library Center

 

200

 

200

 

0

 

512

 

512

 

0

OCM Convertible Trust

 

39,500

 

39,500

 

0

 

114,231

 

101,100

 

13,131

OCM Global Convertible Securities Fund

 

6,200

 

6,200

 

0

 

18,133

 

15,869

 

2,264

Partner Reinsurance Company of the U.S.

 

18,500

 

18,500

 

0

 

65,236

 

47,351

 

17,885

Peoples Benefit Life Insurance Company Teamsters

 

145,000

 

145,000

 

0

 

567,595

 

371,128

 

196,468

Prudential Insurance Co of America

 

550

 

550

 

0

 

1,408

 

1,408

 

0

Qwest Occupational Health Trust

 

9,600

 

9,600

 

0

 

27,514

 

24,571

 

2,943

 

2

Chesapeake Energy Corporation

5.00% Cumulative Convertible Preferred Sock (Series 2005B)

Supplement No. 2 (165167 834)

 

 

 

 

Qwest Pension Trust

 

22,900

 

22,900

 

0

 

69,479

 

58,613

 

10,867

RBC Capital Market

 

5,000

 

5,000

 

0

 

12,798

 

12,798

 

0

Retail Clerks Pension Trust #1

 

35,000

 

35,000

 

0

 

89,583

 

89,583

 

0

Retail Clerks Pension Trust #2

 

17,500

 

17,500

 

0

 

44,791

 

44,791

 

0

Silver Convertible Arbitrage Fund, LDC

 

13,920

 

13,920

 

0

 

35,628

 

35,628

 

0

Sphinx Convertible Arb Fund SPC,
c/o SSI Investment Mgmt.

 

9,160

 

9,160

 

0

 

23,445

 

23,445

 

0

Sphinx Convertible Arbitrage SPC

 

8,673

 

8,673

 

0

 

22,199

 

22,199

 

0

Sphinx Fund

 

4,770

 

4,770

 

0

 

40,952

 

12,209

 

28,743

State of Oregon/Equity

 

27,465

 

27,465

 

0

 

70,297

 

70,297

 

0

Sunrise Partners Limited Partnership

 

15,000

 

15,000

 

0

 

39,393

 

38,393

 

1,000

Syngenta AG

 

1,025

 

1,025

 

0

 

2,623

 

2,623

 

0

TCW Group, Inc.

 

23,150

 

23,150

 

0

 

59,252

 

59,252

 

0

The City of Southfield Fire & Police Retirement System

 

888

 

888

 

0

 

2,273

 

2,273

 

0

The Estate of James Campbell CH

 

2,429

 

2,429

 

0

 

6,217

 

6,217

 

0

The Estate of James Campbell EST2

 

13,554

 

13,554

 

0

 

34,691

 

34,691

 

0

The Northwestern Mutual Life Insurance Company-Group Annuity Separate Account

 

5,000

 

5,000

 

0

 

508,592

 

12,798

 

495,794

The St. Paul Travelers Companies, Inc.
Commercial Lines

 

33,600

 

33,600

 

0

 

102,752

 

85,999

 

16,753

TQA Master Fund

 

35,440

 

35,440

 

0

 

269,490

 

90,709

 

178,782

TQA Master Plus Fund

 

18,900

 

18,900

 

0

 

121,679

 

48,375

 

73,304

UBS Securities LLC

 

21,760

 

21,760

 

0

 

567,488

 

55,695

 

511,793

Union Pacific Corp Master Retirement Trust

 

25,000

 

25,000

 

0

 

63,988

 

63,988

 

0

United Technologies Corporation Master Retirement Trust

 

9,231

 

9,231

 

0

 

23,627

 

23,627

 

0

UnumProvident Corporation

 

12,000

 

12,000

 

0

 

36,147

 

30,714

 

5,433

Vanguard Convertible Securities Fund, Inc.

 

147,400

 

147,400

 

0

 

467,826

 

377,270

 

90,556

Viacom Inc. Pension Plan Master Trust

 

1,225

 

1,225

 

0

 

3,135

 

3,135

 

0

Virginia Retirement System

 

69,700

 

69,700

 

0

 

203,300

 

178,397

 

24,903

Wachovia Capital Markets LLC

 

200,000

 

200,000

 

0

 

511,900

 

511,900

 

0

Wachovia Securities International Ltd

 

160,000

 

160,000

 

0

 

409,520

 

409,520

 

0

Waterstone Market Neutral MAC51, Ltd.

 

20,600

 

20,600

 

0

 

93,294

 

52,726

 

40,568

Waterstone Market Neutral Master Fund, Ltd.

 

109,400

 

109,400

 

0

 

495,392

 

280,009

 

215,383

Yield Strategies Fund I, L.P.

 

60,000

 

60,000

 

0

 

153,570

 

153,570

 

0

Zurich Institutional Benchmark Master Fund

 

10,480

 

10,480

 

0

 

70,412

 

26,824

 

43,588

______________

* Includes common stock issuable upon conversion of Chesapeake’s 5.00% Cumulative Convertible Preferred Stock (Series 2005B) at a conversion rate of 2.5595 shares of common stock per share of preferred stock.

 

(1)      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

Chesapeake Energy Corporation

5.00% Cumulative Convertible Preferred Sock (Series 2005B)

Supplement No. 2 (165167 834)