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The SEC has opened an informal inquiry into Chesapeake's (CHK -1.6%) program that granted Aubrey...

  • Thursday, April 26, 2012, 2:20 PM ET
    The SEC has opened an informal inquiry into Chesapeake's (CHK -1.6%) program that granted Aubrey McClendon a share in each of the natural gas producer's wells, Reuters reports. Major shareholder David Dreman questions whether CHK's new statements that its directors had never reviewed or approved McClendon's actions were prompted by the SEC probe.
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This news story has 23 comments:

  •  
    In the words of Aubrey's #1 fan (Cramer)...Boo-Yah!
    26 Apr 2012, 02:22 PM Reply Like
  •  
    We'll see if Cramer has the nads to address CHK now. It would be a good "credibility" segment for him.
    26 Apr 2012, 03:55 PM Reply Like
  •  
    right on schedule
    26 Apr 2012, 02:36 PM Reply Like
  •  
    as in...too late. Or as the SEC puts it, "...better late than never."
    26 Apr 2012, 06:10 PM Reply Like
  •  
    I smell a shareholder suit next.
    26 Apr 2012, 06:29 PM Reply Like
  •  
    Why does it take a news story to get the SEC to move???? This information has apparently been discussed in forms sent to the SEC on various occasions? Not the loans but the well participation program. The loan thing smells like the Dodd/Countrywide loan deal. Dodd as we know decided not to run again.
    26 Apr 2012, 02:40 PM Reply Like
  •  
    Full CYA mode on all sides.
    26 Apr 2012, 02:54 PM Reply Like
  •  
    Cut the cancer out, oh oh oh, I mean at CHK, the SEC will remain glacial and blind eternally.
    26 Apr 2012, 03:05 PM Reply Like
  •  
    As intended. Who do you think starves them of money and therefore staff needed? The Wall St. lobby insists it be that way and so it is.
    27 Apr 2012, 09:01 AM Reply Like
  •  
    Something doesn't pass the smell test here. I sold off all my shares of CHK last week after I began to hear about this huge loan to the CEO.
    26 Apr 2012, 03:48 PM Reply Like
  •  
    SEC...how's that TVIX / CS inquiry going...oh, won't get to it until after BO's second term you say...
    26 Apr 2012, 04:39 PM Reply Like
  •  
    Is it true that Aubrey McClendon and Jon Corzine are cousins?

    Word is that Mr. McClendon is chateau shopping in France today.

    Have a good evening.
    26 Apr 2012, 05:02 PM Reply Like
  •  
    Ok- the CEO took out loans on his 2.5% well stakes. The loans did not come from CHK but from other investors who wanted stakes in the wells. I am guessing if he defaults he looses his 2.5% stake. Are these investors approved of by CHK-because they may become business partners. And are these passive stakes?? Also how much did CEO have to pay for his 2.5% stake???
    26 Apr 2012, 05:09 PM Reply Like
  •  
    dont know when CHK will bounce-shorts scaring everybody out screaming bad news. However nobody doubts the value of the wells, I would love to hear their hedges on gas-best thing with gas fall-they just say they are hedged-no time period given. Wonder if Cramer will have him on again-before the stock goes back to high.. Lol
    26 Apr 2012, 05:35 PM Reply Like
  •  
    Great points Pat,

    This is why it is better to look at a company's technicals. Yeah, the fundamentals and the story are important. But the technicals remove the investor from unnecessary judgment whenever it is not needed.

    In this case, the technicals are hella ugly and could get even worse.

    Regards.
    26 Apr 2012, 06:41 PM Reply Like
  •  
    the fundamentals are bad also. There may be some up days here and there, but until the balance sheet is fixed, it's a trade only.
    26 Apr 2012, 11:27 PM Reply Like
  •  
    Coal prices are going to remain flat for the next 3 years and that will keep downward pressure on nat gas as well. Coal producers will continue to get hammered. Coal fired utilities will continue to reduce stockpiles and move to nat gas. Nat Gas power producers should see some upside from their low cost generation.
    27 Apr 2012, 09:02 AM Reply Like
  •  
    I just wonder where this company would be if it stayed focused on natural gas? Instead of changing to oil. I am pretty sure all of this effort came about because of Aubrey McClendon. Sure he is a wheeler and dealer but isn't that what makes companies successful?The fact is he has done nothing wrong.
    26 Apr 2012, 06:34 PM Reply Like
  •  
    It is my understanding that the SEC only checks the smoke alarms if the building is on fire.

    (The last time I made a smart remark like that, the SEC investigated me, but I'm retired now and don't have any S-1s or 10Ks on file, so I shouldn't be in harms way.)
    26 Apr 2012, 08:06 PM Reply Like
  •  
    Sure would be nice to see a headline about the SEC opening an investigaton on Jon Corzine.
    26 Apr 2012, 11:02 PM Reply Like
  •  
    Don't forget, he is ex-Goldman Sachs and those folks are immune to the mundane laws that us mortals must endure. Besides, the people that are missing the one billion dollars are probably willing to overlook it for such a distinguished citizen.
    27 Apr 2012, 12:54 PM Reply Like
  •  
    Aubrey is the worst CEO in the country. Many thanks for the incompetence! My shorts are up 50%!!!
    27 Apr 2012, 09:56 AM Reply Like
  •  
    Per this morning's Platts Oilgram, Aubrey has hired an outside spokesman (crisis public relations firm Hill+Knowlton Strategies) to issue statements on his behalf.

    It's only a matter of time until Aubrey is removed and sent packing.
    27 Apr 2012, 10:05 AM Reply Like
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