Chesapeake CEO Sells Stock In Company, Blames Crisis
Not to end your week on another downer, but Aubrey K. McClendon, the CEO of Chesapeake Energy Corp. and its largest individual shareholder, has been forced to sell “substantially all of his shares” of common stock in the company, in order to meet margin loan calls. The reason underlying the margin calls, according to McClendon: “the extraordinary circumstances of the worldwide financial crisis.” McClendon’s the guy you’ve been seeing on TV pitching Boone Pickens’ natural-gas plan, and Oklahoma City-based Chesapeake is a major player in the Barnett Shale.
14 Comments to “Chesapeake CEO Sells Stock In Company, Blames Crisis”
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If the CEO is taking such big risks with his own money. I can’t wait to see how he’s running his Book.
I think his name is spelled McClendon.
Insider: Noted and corrected. Thanks.
What happened to your other post, Glenn?
Gosh, he must have forgotten about that when the company issued another release this evening, and McLendon was quoted thus:
Aubrey K. McClendon, Chesapeake’s Chief Executive Officer, commented, “We are pleased to highlight the steps Chesapeake is taking to further enhance its financial strength and also to highlight the tremendous growth in the company’s resource potential. We look forward to providing extensive operational details and showcasing the attractiveness of our corporate strategy, the quality of the company’s assets, the breadth of Chesapeake’s technical expertise, the value of the company’s asset monetization strategies, our unique corporate culture and our vision for the future at our Investor and Analyst Meeting at our corporate headquarters on October 15 and 16.”
Trey: I dunno. Either I hit the wrong button and blew it up, or the gods of editing have intervened.
According to the last SEC filing he holds 33,454,424 shares of Chesapeake. At the 16.52 closing price that is $552,667,084.
Poor thing, he only made a little more than half a billion dollars from the sale of his stock. I guess this economic downturn is hurting everyone.
I can tell you it’s definitely hurting the “peons” who work for Chesapeake and own stock options in the company. Chesapeake’s stock was around $70 last spring, and now it’s at $16.52!!?? A certain relative of mine who works there is probably not going to be retiring in the next few years like he thought he would…
It’s back, G.
Any word on Tracy Rowlett’s future with Chesapeake’s news (propaganda) TV channel?
CHK is still up 15x over the last 10 years. Aubrey had CPK on margin because he had already cashed out and diversified so much capital over the years. This was only a short-term paper loss, but with this insane market volatility, these paper losses are turning into cash losses. For those with excess cash, this is the greatest market buying opportunity of our lifetimes. Aubrey is still a ridiculously wealthy guy and Chesapeake a great American success story. Gas prices doubled in 12 months, so he doubled down on the ride up, then ate the loss when prices crashed to near normal levels. It’s not the end of the world people. Until the Obama regime starts.
“It’s not the end of the world people. Until the Obama regime starts.”
That’s right, then it will be a better world.
It was around $70 in July actually. All energy equities peaked in July in concert with record crude oil prices. Since then, along with everything else, the price has plummeted. Global economic slowdown!!
“Poor thing, he only made a little more than half a billion dollars from the sale of his stock. I guess this economic downturn is hurting everyone.”
If this was 100% due to margin calls, he may not have made anything. There’s a decent chance he’s broke.