McClendon Out At Chesapeake - Is A Takeover Next? 1/29/13 Forbes

The chief executive of Chesapeake Energy and the greatest wildcatter of his generation, Aubrey McClendon, will resign from the company he founded on April 1.

The news has caused shares of Chesapeake, the nation’s no. 2 producer of natural gas, to jump 11% in after-hours trading. With McClendon out, a significant obstacle to the takeover of Chesapeake will have been removed.

In a statement this afternoon Chesapeake stated that the decision to replace McClendon was made by both McClendon and the board of directors and that the company is now in the process of selecting a new leader.

http://www.forbes.com/sites/christopherhelman/2013/01/29/aubrey-mcc...

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There was talk of that on CNBC this morning.  But it would be difficult because there are so many partnerships.  They would all have to agree before anything is approved.  I think the Chinese and French based Total are partners with Chesapeake... right?  Just to name a few.

Aubrey is resigning on April Fools Day???

But, the stock already jumped 11%?  Lets see what happens with the stock price between now and April Fools Day.

I find it hard to believe that Aubrey McClendon is the "Greatest Wildcatter of his generation". He may be the best "Used Car Salesman" however.

Matthew I like your response and it is closer to the truth.

I agree but maybe more like a snake oil salesman

Simple answer:  No...

1. Too much debt.

2.  Too many lawsuits, filed and ready to be filed.

3.  Too many investigations.

4.  Too low nat gas price.

5.  Too many JVs, VPPs, MLPs, Founder Well Participation Program, aka Aubrey McClendon's
     2.5% of CHK. et al,  for decades of production/costs.  Too many Companies, Banks,
      Investment Corps. getting too big a piece of the CHK pie...
      before mineral owners even get their royalty checks.

6.  Too much cap ex. and too many Aubrey projects yet to pay for.

7.  Too many questions about the "books."  No "Buyer" wants to get shafted.

8.  Not enough goodwill to bank anything on.

9.  Shareholders and others are still unhappy and mistreated by CHK.

10. Still too close for comfort with the front steps of a Bankruptcy.

IMO, removing Mr. McClendon was just the tip of the iceberg lurking below the waters.

DrWAVeSport Cd1 2/5/2013

Brings to mind a big snowball running behind a cartoon character. If anyone can pull out of the path it is Aubrey. It is my opinion that he will land on both feet and not be rolled over by the snowball.

Jay,

It is Wall Streets dirty "little" secret.  Take a small private company and head for the IPO on the "Streets."  Use Stockholder moneys and spend to the CEOs' hearts content.  The SEC, IRS, FTC, FBI and State Regulators all have blindfolds on. 

I can think of several CEO and BODs and Corp. Executives who in the 1990's made out like bandits with the "sale" mergers of several Local Publicly-Held Corporations...  And the "Buyers" after the fact learned the Corps. they bought where nearly bankrupt...  

Reminds me of Sept. 2008.  Who went to jail?  No one but Bernie Madoff and Bro.

ShaleGeo,

It is an epidemic...

Jim Bob just reinforced my thinking that it's time to move my investments to funds and get out of most individual stocks.  I was lucky enough (note:  I said "lucky," not "skilled") to have sold my share of FCX a few weeks before Jim Bob decided to get back into oil and gas and tank the price of the stock.  When a CEO can do that, without the approval of the shareholders, it's time to not own that stock.

TD,

You are probably right. Unless he ends up behind bars.  Remember this:

"CEO Aubrey McClendon has retained Marvin Pickholz, a partner with Duane Morris and a former assistant director of enforcement with the U.S. Securities and Exchange Commission. He is counseling McClendon in connection with the SEC inquiry into loans he obtained from an investment firm doing business with the natural gas company..."

That was in June 2012...

It's too bad no one on the "inside" is talking...Or...maybe they are...Whistleblowers get a % of damages and/or moneys recovered.  False Claims Act.  

 

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