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

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Donnyboy

Lettin' the high times carry the low....
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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
 

Donnyboy

Lettin' the high times carry the low....
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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.
 
Mar 3, 2004
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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.
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...
 

Donnyboy

Lettin' the high times carry the low....
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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
 

steross

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There is no evidence that McClendon or Ward used inside knowledge gleaned from Chesapeake in their hedge fund trading.
Ummm. Ok. How could they not use insider knowledge when they are the chief executives? Pretend you don't know?