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Chesapeake in Michigan probe for possible criminal violation

  • Chesapeake Energy's (CHK) bad day gets a little worse, as it reveals Michigan's attorney general is probing a possible violation of the state's criminal solicitation law.
  • CHK said in an SEC filing that the Michigan Department of Attorney General issued a subpoena related to the matter on Sept. 16.
  • CHK had already said more than a year ago that it is the subject of a U.S. government investigation over possible criminal antitrust violations related to the purchase and lease of oil and gas properties in Michigan.
  • Shares slumped nearly 7% in regular trading after the company warned Eagle Ford oil production would be lower this quarter, ending a streak of increases and raising questions about its growth prospects.
Comments (4)
  • Factzplz
    , contributor
    Comments (229) | Send Message
     
    This cannot be the reason for the selloff, one field as the reason was fully explained.

     

    Recall about 4 years ago when McClendon was asked about how the Bakken drilling was going. He responded that CHK had two rigs there but did not find anything. The pea-brains on CNBC ran with, "CHK cannot find oil in the Bakken."

     

    But what was not reported was the comment by Aubrey, "We have a different view of the world, and if it works out we will let you know."
    Six month later he let the idiots in on that CHK for 3 years had been assembling 2 million acres of the Utica, where others were clueless.

     

    So when there is a logical reason that drilling will be down in one play, but overall steaming ahead, my bet is on the guy that knows what he is doing, not some clueless analyst wannabe CEO.

     

    CHK is in good hands with Lawler to achieve the 50% cost reduction and increase production with 100 less (60% less) rigs. Imagine that.

     

    And did anybody catch the $0.60 Mcf cost for gas? Who else is producing gas at half off?

     

    So why were any shares sold?
    7 Nov 2013, 12:46 AM Reply Like
  • theo_rhetoric
    , contributor
    Comments (150) | Send Message
     
    Sell the news.
    Price way above 200-day MA.
    Debt still too high.
    Nat gas price still too low.
    I'm long but also lightened up on the reversal. Sometimes the crowd is right.
    8 Nov 2013, 07:34 AM Reply Like
  • buffett222
    , contributor
    Comments (897) | Send Message
     
    I bought a 1/2 position today at the low. will buy more if it goes lower.
    seems like people just lightening up in general.
    7 Nov 2013, 02:44 AM Reply Like
  • al roman
    , contributor
    Comments (5933) | Send Message
     
    Share holders pay the legal fee's.
    7 Nov 2013, 07:21 PM Reply Like
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