Energy / Hydraulic Fracturing

Special Report: Chesapeake, McClendon endure rocky year; more uncertainty ahead

Chesapeake Energy Corporation’s 50 acre campus is seen in Oklahoma City, Oklahoma,

NEW YORK, NY — ” The stock price of his energy company is down nearly 30 percent. The board stripped him of his chairmanship amid scandal. Today, his estimated billion-dollar personal fortune has shrunk by more than half.

Aubrey McClendon, 53, endured a trying year running the second-largest natural gas producer in the United States, Chesapeake Energy Corp. But as corporate, state and federal probes into McClendon and the company continue, 2013 isn’t looking much easier.

Facing a cash crunch, the natural-gas giant that McClendon founded had been counting on profits from land that was leased in Colorado, North Dakota and Wyoming. The deals, however, have soured – at a cost to Chesapeake of more than a billion dollars, the company told investors in November.

Like property owners in Michigan and Texas, land owners in North Dakota have sued Chesapeake over allegations that the company reneged on leasing agreements. And now, one of its leading regional contractors is suing Chesapeake for allegedly failing to pay a $15 million bill, court documents show. ”

— Brian Grow, Anna Driver and Joshua Schneyer, Reuters

link to article

Tags: ,