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Special Report: Inside Chesapeake, CEO ran $200 million hedge fund

Discussion in 'World News & Politics' started by Donnyboy, May 2, 2012.

  1. Donnyboy

    A/V Subscriber Donnyboy RELAX

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    (Reuters) - As chairman and CEO of Chesapeake Energy Corp, Aubrey McClendon has been a powerhouse in the vast U.S. natural gas market, directing the company's multibillion dollar energy-trading operation and setting output targets for America's second-largest producer.
    Behind the scenes, a Reuters investigation has found, McClendon also ran a lucrative business on the side: a $200 million hedge fund that traded in the same commodities Chesapeake produces.
    On Tuesday, two weeks after Reuters reported that McClendon has taken up to $1.1 billion in loans against his stakes in Chesapeake oil and gas wells, the company stripped McClendon of the chairmanship and reiterated that it's reviewing details of the loans. A statement quoted McClendon, who will stay on as CEO, saying that the move will enable him to focus his "full time and attention on execution of the company's strategy."

    http://www.reuters.com/article/2012/05/02/us-chesapeake-mcclendon-hedge-idUSBRE8410GG20120502
  2. Donnyboy

    A/V Subscriber Donnyboy RELAX

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    This could get huge and be a major hit to the OKC economy. Aubrey will be lucky to miss jail. Buzz is field layoffs and cuts in capitol budgets.
  3. HanesOnU

    HanesOnU Deputy

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    They already have a cash shortage and were going to have to sell land. So those two things aren't really anything new, and would in no way be surprising...
  4. Donnyboy

    A/V Subscriber Donnyboy RELAX

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    True but I believe the scope of that has been accelerated quite a bit.

    This could move gas quite a bit depending on how far reaching their financial woes truly are.......could see a little rally in nat gas
  5. steross

    A/V Subscriber steross OSU fan in need of hyper loop

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    Ummm. Ok. How could they not use insider knowledge when they are the chief executives? Pretend you don't know?
  6. NYC Poke

    A/V Subscriber NYC Poke Sir Dr. Lawyer Esquire, Lord of East Texica

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    Very lucky.
  7. Jonkr06

    Jonkr06 Cowboy

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    I don't understand how McClendon is still CEO.
    Hbuchanan likes this.
  8. Philranger

    Philranger Wrangler

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    They're still drilling like there's no tomorrow fwiw.
  9. HanesOnU

    HanesOnU Deputy

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    It's just a matter of time. There are calls for it, and also mentions of the company being bought. If either happens, the stock probably soars again...

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