Chesapeake shares down after report on CEO loans
Shares of Chesapeake Energy Corp. fell this morning after Reuters published a special report documenting the loans taken out by founder and CEO Aubrey McClendon.
Shares were down almost 10 percent, to as low as $17.20 as of 10:30 a.m. That marked a 52-week low for the stock. At 51 million shares, trading volume was more than three times the average daily volume.
The Reuters story detailed $1.1 billion in personal loans taken out by McClendon against his stake in Chesapeake’s Founder Well Participation Program (Documented on Page 60 of last year’s proxy statement). The program allows McClendon to invest a small percentage in each well drilled by the company.
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Comments
Looks like Aubrey got caught with his hand in the cookie jar… AGAIN!
I agree with Cheyenne, unless this newspaper truly is in the back pocket of Chesapeake (as some suggest) I hope that there will be a more in depth follow up article.
The DOK’s coverage of this story and ALL related stories to Chesapeake is 100% despicable. For a newspaper boasting their new ‘energy beat’, this is stupidity at its finest. The citizens of this city (and state) deserve to be informed. This is an Enron/WorldCom/Penn Square-style meltdown in its beginnings over at 63rd & Western. This deserves to be IN PRINT for all to read in the DOK. Not a blog snippet.
Color me disenchanted.
Well said Wesley, Bob & Cheyenne. I’m betting it’s only a matter of minutes before this sad excuse for a news outlet shuts down commenst on this article.
In the meantime, here’s a nice little quote from none other than Fox Business News on CHK after today’s meltdown: “I can’t remember a public company of this size with the number of shell companies used for legal protection, constant questions over management leadership and lack of board oversight, accounting practices that are questionable at best, since, I hate to say it, but Enron of 2000/2001″
of and if you want the truth about what’s really going on at Chesapeake, check our Reuters & Forbes, who both published absolutely scathing articles on CHK and McClendon today.
Funny, it is the 2nd “featured” story (the ones on the left side w/pic) on the “front page of the website” right now…
“Chesapeake is one of the leaders in this (sector), but his business ethics are out of the Wild West,” said David Dreman, chairman of Dreman Value Management LLP, which owns about 1 million shares of the company.
check out the story
http://www.reuters.com/article/2012/04/18/us-chesapeake-share-drop-idUSBRE83H0WJ20120418
as for not seeing this in the WSJ – that once proud newspaper has gone from being the elite of business news to being the published hack for conservatives thanks to owner Rupert Murdock
I just hope they figure it out and it blows over. No right-minded Oklahoma Citian wants the company to fail.
This is how journalism works. You protect the “family”. It kind of works like the mafia. Why didn’t the report come from the Daily Poor Excuse for Real Journalism Oklahoman? Because they really don’t want anyone to know and if they actually did a real report on it then Aubrey would take his money and go play somewhere else. Remember subscribers don’t matter…only the select rich and powerful in OKC matter.
If you want ACTUAL information about Ole Aubrey’s ENron style machinations, go here: http://youtu.be/6l0c9wFoT1I.
It is awesome how people like to slander a company that employs thousands of Oklahomans during a time when people are laying off, provides revenue for Oklahoma, gives to the communities of Oklahoma! And every year raises money for United Way! The Oklahoma Regional Food Bank! And Many Many Many other charities!!! Aubrey McClendon is all about his employees and what he can do for Oklahoma and yes, I am sure making sure his company that he began from the ground up is a success! And all you people can do is slander!!! Get a job and a life!
To point out someone has bad business ethics is not slander, Meranda. Waht he has done by being dishonest may set back every single one of the causes CHK supports and the lives of his employees, if they go under. It’s not the first time he’s been less than transparent.
Meranda, no one wants Chesapeake to fail, but any executive level malfeasance needs to be agreesively rooted out and dealt with so the company can recover and thrive. And the truth being told by national media outlets like Reuters and Forbes isn’t slander just because the Oklahoman doesn’t have the guts to report this story with the same clear-eyed sobriety. I’m sure that Enron’s former employees would have loved to uncover the truth about Ken Lay and his cronies in enough time to have saved their company and their community. Let’s hope that CHK’s Board of Directors makes some changes and has the courage to steer the company in the right direction, no matter how painful those changes may be in the short term. I’m sure plenty of CHK employees would give up their Botox treatments and fancy fitness facilities for a little long term job security.
Here is a must-watch video from Yahoo Finance on the CHK story that Reuters broke today.If I worked for Chesapeake I’d be working on my resume. http://finance.yahoo.com/blogs/breakout/chesapeake-energy-plunges-ceo-debt-165736649.html
“His approach to running his company also is renowned: Among other employee perks, on-site Botox treatments are available at its headquarters in Oklahoma City, Oklahoma.”
Why does Aubrey want his employees to have that perennially surprised look? 0.0
Paul:
The story everyone wants to read is “Should OKC be worried about this?”, not a rehash/rewrite of yesterday’s Reuters stories. Linking to everyone’s analysis of this and doing none of your own smacks of a cowardly newspaper.
is this all you are going to have about this story? Nothing on the front page of the website all day?? Malpractice!!