1. You are viewing Orangepower as a Guest. To start new threads, reply to posts, or participate in polls or contests - you must register. Registration is free and easy. Click Here to register.

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

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

  1. Donnyboy

    Donnyboy Speaks the language A/V Subscriber

    Joined:
    Oct 31, 2005
    Messages:
    14,254
    (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

    Donnyboy Speaks the language A/V Subscriber

    Joined:
    Oct 31, 2005
    Messages:
    14,254
    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 Sheriff

    Joined:
    Mar 3, 2004
    Messages:
    3,705
    Location:
    OKC
    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

    Donnyboy Speaks the language A/V Subscriber

    Joined:
    Oct 31, 2005
    Messages:
    14,254
    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

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

    Joined:
    Mar 31, 2004
    Messages:
    14,857
    Location:
    Australia
    Ummm. Ok. How could they not use insider knowledge when they are the chief executives? Pretend you don't know?
     
  6. NYC Poke

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

    Joined:
    Sep 24, 2007
    Messages:
    24,228
    Very lucky.
     
  7. Jonkr06

    Jonkr06 Territorial Marshal

    Joined:
    Aug 18, 2007
    Messages:
    5,955
    Location:
    Katy, TX
    I don't understand how McClendon is still CEO.
     
    Hbuchanan likes this.
  8. Philranger

    Philranger Territorial Marshal

    Joined:
    Oct 6, 2010
    Messages:
    6,648
    Location:
    Owasso
    They're still drilling like there's no tomorrow fwiw.
     
  9. HanesOnU

    HanesOnU Sheriff

    Joined:
    Mar 3, 2004
    Messages:
    3,705
    Location:
    OKC
    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...
     

Share This Page