Thought ya'll might be interested in this item.
Exclusive: Chesapeake CEO took out $1.1 billion in unreported loans
Anna Driver and Brian Grow
April 18 2012, 6:45 AM CDT
HOUSTON (Reuters) - Aubrey McClendon, the CEO of Chesapeake Energy Corp, has borrowed as much as $1.1 billion over the last three years against his stake in thousands of company wells - a move that analysts, academics and attorneys who reviewed loan documents say raises the potential for conflicts of interest.
The complete article can be viewed at:
Cheasapeake royalties to owner I know have dropped to hundreds ...Seems the money loaned (to CEO ) is impacting the royalties as an expense. She just got this state of the art slick prospectus/annual report from them asking me how can they afford to publish this $$$ thing? I just smiled said you paid for it.
Anybody ever hear of "ENRON"?
The current rumor is a takeover of Chesapeake. But it's hard to determine the company's valuation partly due to so many investors domestically and overseas. It does't quite feel like an ENRON yet... but that's been on the mind of a lot of people for years. It's all very unfortunate. Hopefully the royalty owners and investors survive this.
I don't know where your reference to ENRON comes from. Enron had no assets. They were a trading company that made money on the trade of NG, etc. CHK has assets. From rigs, to a trucking company, to actual reserves in the ground. Where are you guys getting this stuff?
I agree. The problem today is this society is an "instant gratification" one. If you can't deliver on that schedule you are screwed especially if you are a public company. The value of the NG resource will come back. His problem was he and the other companies found too much and he leveraged too much getting getting it.
Touched a nerve there, huh?
Crooks are crooks. If there's a snake in the wood pile, sooner or later, he'll bite you.
Safeway had as.sets but is no more. Stockholders lost. The board didn't.
Maybe the NG prices will rebound in time to put their stock back up ...if so they will survive.
I hope the CEO and board are honest men who can fix this rattle that is affecting their stock prices in such a negative way.
They pioneered the Shale boom. But just as Beta Max was better machine then VHS Sony ..we all ended up with VHS Sony's.
I certainly do not want all that shale gas to be owned by foreign investors.