Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Chesapeake Energy Corporation    CHK

Delayed Quote. Delayed  - 02/24 10:00:32 pm
5.66 USD   -1.57%
02/23 CHESAPEAKE ENER : CHK) Falls on Earnings
02/23DJCHESAPEAKE ENER : Revenue Falls on Cheaper Energy Prices
02/23 CHESAPEAKE ENER : narrows 4Q loss to $343 million
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Chesapeake Energy's Investors, Analyst Call For Change

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/20/2012 | 07:17pm CET

--Natural-gas company faces call for ouster of CEO

--Chesapeake has lost $800 million in market value since Tuesday's close

--Investor lawsuit filed against company

 
   By Ben Lefebvre 
   Of  
 

Investors and at least one market analyst are putting pressure on Chesapeake Energy Corp. (>> Chesapeake Energy Corporation) to rein in--and, in at least one case, replace--its chief executive in the wake of revelations detailing $1.1 billion in personal loans he took using his stakes in the company's wells as collateral.

The loan revelations, disclosed Wednesday, gave further ammunition to investors critical of Chesapeake Energy CEO and co-founder Aubrey McClendon, who over 12 years has built the company into the second-largest natural-gas producer after Exxon Mobil Corp. (XOM). In October 2008, McClendon drove down the price of the company's shares by selling $569 million of his own stock in the company to pay back margin calls from his stock brokers.

For the past three years, McClendon took out loans against 2.5% stakes in Chesapeake wells that the company allowed him to buy under its Founders Well Participation Program. McClendon used those holdings to secure $500 million in loans from private-equity firm EIG Global Energy Partners, which was also in financial dealings with Chesapeake. The loans were first revealed by Reuters on Wednesday.

On Thursday, the Deborah G Mallow IRA SEP Investment Plan filed a lawsuit against McClendon and Chesapeake Energy's board of directors. The suit, filed in the U.S. District Court, seeks that the company disclose all information relating to the McClendon loans, establish independent oversight of the loans and abolish the company program that allowed McClendon to buy personal stakes in the company's wells.

"Such huge loans raise serious conflicts of interest; they can easily cloud the CEO's judgment on key issues," the plaintiff's complaint stated. Attempts to reach the plaintiff were unsuccessful. A Chesapeake spokesman wasn't immediately available to comment on the lawsuit.

An analyst also called for McClendon's, or the board's, ouster.

Given the "questionable nature" of McClendon's actions, the board's approval of the program and the company's high debt level, "the best thing for investors would be to replace the board and/or the CEO," Argus energy analyst Phil Weiss wrote in an analyst note issued Friday. Weiss has a "sell" rating on Chesapeake shares.

"Now that this comes out, it makes my concern greater that there are other things going on that we can't see," Weiss said in an interview. "My level of concern about some sort of impropriety has grown; my concern about cooking the books has grown."

In an interview with Dow Jones last Wednesday, McClendon refused to discuss the loans, calling them a personal matter unrelated to Chesapeake. Chesapeake legal counsel Henry Hood has said McClendon's loans hadn't put the company's finances at risk.

Chesapeake stock was trading at $17.82 mid-morning Friday, down 6.5% since Tuesday's close. The company has lost about $800 million in market value since details of McClendon's loans appeared Wednesday.

-By Ben Lefebvre, Dow Jones Newswires; 713-547-9201; ben.lefebvre@dowjones.com

Stocks mentioned in the article : Chesapeake Energy Corporation
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CHESAPEAKE ENERGY CORPORAT
02/23 CHESAPEAKE ENERGY : CHK) Falls on Earnings
02/23DJCHESAPEAKE ENERGY : Revenue Falls on Cheaper Energy Prices
02/23 CHESAPEAKE ENERGY CORP : Results of Operations and Financial Condition, Regulati..
02/23 CHESAPEAKE ENERGY : narrows 4Q loss to $343 million
02/16 CHESAPEAKE ENERGY : to Boost Drilling Budget, Rig Count
02/15 CHESAPEAKE ENERGY : to boost drilling, rig count in 2017
02/15 CHESAPEAKE ENERGY : to boost drilling budget, rig count
02/15 CHESAPEAKE ENERGY CORPORATION : Blog Coverage Chesapeake Energy to Increase Rig ..
02/14 CHESAPEAKE ENERGY CORPORATION : Provides 2017 Guidance And Operational Update
02/14DJCHESAPEAKE ENERGY : Settles With Estate of Former CEO -- Update
More news
Sector news : Oil & Gas Exploration and Production - NEC
02/26 EXCLUSIVE : Algeria's Sonatrach in talks to begin offshore drilling - source
02/24 Canada energy sector sidelined as Big Oil chases fatter profits
02/24 HUSKY ENERGY : Canada's Husky Energy posts fourth quarter profit, partly on asse..
02/24DJDEVON ENERGY : EPA Chief Scott Pruitt's Emails Show Close Ties With Oil and Gas ..
02/24DJDEVON ENERGY : EPA Chief Scott Pruitt's Emails Show Close Ties With Oil and Gas ..
More sector news : Oil & Gas Exploration and Production - NEC
News from SeekingAlpha
02/26 Tracking Mason Hawkins' Southeastern Asset Management Portfolio - Q4 2016 Upd..
02/24 ENERGY RECAP : Your Take On The OPEC Production Cuts
02/24 Chesapeake Energy Cracks On Expected Lines
02/24 Chesapeake Energy upgraded at UBS, maintained Buy at Wunderlich
02/24 WALL STREET BREAKFAST : A Big Wow For The Dow
Advertisement
Financials ($)
Sales 2017 9 001 M
EBIT 2017 1 196 M
Net income 2017 591 M
Debt 2017 9 833 M
Yield 2017 -
P/E ratio 2017 8,78
P/E ratio 2018 4,84
EV / Sales 2017 1,65x
EV / Sales 2018 1,38x
Capitalization 5 023 M
More Financials
Chart CHESAPEAKE ENERGY CORPORAT
Duration : Period :
Chesapeake Energy Corporat Technical Analysis Chart | CHK | US1651671075 | 4-Traders
Full-screen chart
Technical analysis trends CHESAPEAKE ENERGY...
Short TermMid-TermLong Term
TrendsBearishNeutralBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 34
Average target price 7,57 $
Spread / Average Target 34%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Robert Douglas Lawler President, Chief Executive Officer & Director
R. Brad Martin Non-Executive Chairman
Domenic J. Dell’Osso Chief Financial Officer & Executive Vice President
Cathy L. Tompkins CTO & Senior Vice President-Information Technology
Merrill A. Miller Lead Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
CHESAPEAKE ENERGY CORP..-18.09%5 023
PACIFIC EXPLORATION AN..--.--%134 098
CONOCOPHILLIPS-5.66%58 134
EOG RESOURCES INC-3.49%55 544
CNOOC LTD-2.80%53 954
OCCIDENTAL PETROLEUM C..-8.40%49 588
More Results