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Chesapeake Energy (CHK) says it is the subject of a U.S. antitrust investigation over possible...

Chesapeake Energy (CHK) says it is the subject of a U.S. antitrust investigation over possible violations in its purchase and lease of oil and gas rights. CHK reportedly plotted with Encana (ECA) to suppress land prices in a promising oil and gas play in Michigan. Shares -1.4% AH. (10-Q)
Comments (5)
  • WPSPIKER
    , contributor
    Comments (1158) | Send Message
     
    This was expected and is old news over 3 or 4 months OLD the announcement is a conformation at this point. The OLD management is pretty much all gone and this type of issue is past news.

     

    M
    9 Aug 2012, 07:12 PM Reply Like
  • sanpace
    , contributor
    Comments (84) | Send Message
     
    New articles show that they are being investigated for other probes relating to oil and gas rights transactions. Looks like it will dip into the low 18.00's agian...or worse. Check out the fines that can be levied. http://reut.rs/OUzgfH
    9 Aug 2012, 08:41 PM Reply Like
  • Mike Voelk
    , contributor
    Comments (190) | Send Message
     
    Well all this just thickens the plot for CHK a bit, and probably made life a lot more interesting for Mr. McLendon. Major effect is that implied volatility and options premiums should spike for the coming year--so it will be a bit more expensive to short or long this stock as the story gyrates. Bottom line though is that CHK seems to be a solid 5 year buy as NG seems to have emerged as the wave of the future for US Energy. My eye is on NG prices, not court cases. Not much has changed.
    9 Aug 2012, 09:08 PM Reply Like
  • zebra114
    , contributor
    Comments (251) | Send Message
     
    There's some other stuff going on that I don't understand. I thought that Aubrey had to either accept or reject participation in the FWPP each year. Am I wrong?

     

    Just in the last 2 weeks of July, most all of the properties in Bradford County, Pa. were recorded at the county courthouse with Chesapeake assigning leases to Jamestown and Larchmont. Those wells have been producing for years on end. Why is AM just recording them now in 2012?
    9 Aug 2012, 10:52 PM Reply Like
  • texaswiz says
    , contributor
    Comments (65) | Send Message
     
    I hesitate to even bring this up, but it must be said. This company has been rife with corruption and underhanded, behind closed door deals for years, more so than most oil and gas concerns. You can change a few chairs at the top but the underlying morals are still the same. The majority of the problems at Chesapeake stemmed from McLendon and his staff buying up too much gas and borrowing all the money to get them there. When egos are out of bounds the shareholders suffer.

     

    Chesapeake needs to be sold so the underlying value will come to the top. Of course, that is assumbing natural gas prices ever rise again.
    10 Aug 2012, 04:27 PM Reply Like
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