Wednesday, May 02, 2012

Story To Watch - Part III - Chesapeake CEO

Here is a brief article from yahoo.finance on the latest conflicts of interest revelation about Chesapeake Energy's CEO, Aubrey McClendon.  Here is the the key paragraph from the article:
Reuters says Aubrey McClendon ran a private hedge fund for at least four years that traded in contracts for oil and natural gas — commodities that Chesapeake produces. The report suggests the hedge fund could have influenced McClendon's running of Chesapeake. 
Every time I read a new story on Chesapeake's CEO the theme from Cops pops in my head "Whatcha gonna do when they come for you, Bad Boys, Bad Boys."

Update:  McClendon tells shareholders he is "deeply sorry" his personal finances have come under scrutiny, according to this Bloomberg article.  He is not apologizing for the loans, just that they have become a distraction.  Here is the kicker, and the figure I was looking for, Chesapeake needs $5.00 natural gas prices to meet its 2014 cash flow goal.  Fracking is more expensive than traditional drilling.  Gas today is off its recent lows, and closed today at $2.27 per MMBtu. 

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