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Chesapeake Energy Unlikely To Remain this Cheap

Aubrey McClendon is a visionary CEO and a very aggressive operator. A recent WSJ article quoted an energy analyst who sits on Chesapeake's board, who commented that he repeatedly had to restrain McClendon's enthusiasm and that now some of their more aggressive purchases were causing them difficulty.

I doubt that Chesapeake is in danger of financial distress given their cash generation and their hedging. I think natural gas in the US has great potential. At the same time, commodity prices are volatile and the CEO is a bit of a cowboy. I'm long Chesapeake, but if I were to do this again I would buy a more conservative company like Cimarex Energy (XEC).