Key Developments: Chesapeake Energy Corp (CHK)
21.66USD
23 May 2013
$0.56 (+2.65%)
$21.10
$20.85
$21.78
$20.56
21,235,327
12,065,867
$22.97
$14.25
Latest Key Developments (Source: Significant Developments)
Pennsylvania Landowners Settle Groundwater Contamination Suit Against Chesapeake Energy Corp
Attorneys with Allen Stewart, P.C. announced that a group of Pennsylvania landowners represented by the Dallas-based law firm have settled their claims against oil and gas giant Chesapeake Energy Corp for $1.6 million. The settlement was reached immediately after attorneys with Allen Stewart, P.C., who acted as lead trial counsel, presented the plaintiffs' case to the arbitration panel and before Chesapeake Energy called any witnesses-a testament to the strength of the plaintiffs' claims. The landowners were also represented by attorneys with Pennsylvania-based law firms O'Malley & Langan, P.C.; Goldberg, Persky & White, P.C.; and Florida based The Romano Law Firm. The plaintiffs are three families who live on Paradise Road in the small town of Wyalusing in northern Pennsylvania. Gas extraction and drilling activities by Oklahoma-based Chesapeake Energy and affiliated companies contaminated the property and groundwater of these Bradford County residents with excess methane levels that required one family to evacuate their home for 2 weeks. Before Chesapeake Energy began drilling in 2009, the plaintiffs' water showed no signs of pollution. By the summer of 2010, however, the plaintiffs experienced sudden changes in their ground water quality. At the same time, Chesapeake Energy's wells located near the plaintiffs' properties were leaking gas because the wells had been poorly cemented. Full Article
Chesapeake Energy Corp Announces Board Changes
Chesapeake Energy Corp announced that Archie W. Dunham, has been appointed by the Board as Chesapeake’s new independent Non-Executive Chairman. Aubrey K. McClendon has relinquished the position of Chairman but remains a Director and will continue to serve as Chesapeake’s Chief Executive Officer and as President. Full Article
Zamansky & Associates LLC Announces Filing Of Chesapeake Energy Corp Employees` ERISA Class Action Lawsuit
Zamansky & Associates, LLC announced the filing of a class action lawsuit under the Employee Retirement Income Security Act (ERISA) on behalf of all employee and former employee participants in the Chesapeake Energy Corp`s Savings and Incentive Stock Bonus Plan (Plan). The lawsuit was filed in the United States District Court for the Western District of Oklahoma and covers all current and former employees of Chesapeake Energy Cor(Chesapeake or the Company) who purchased or held Company stock in the Plan from July 31, 2008 to the present. Since April 2012, Chesapeake has been the subject of a dozen lawsuits, alleging securities fraud, corporate waste and breach of fiduciary duties owed to shareholders. The lawsuits arise out of revelations about CEO Aubrey McClendon, his perks and compensation, and certain business strategies he pursued to his own benefit and the detriment of the Company. McClendon took $1.1 billion in loans against personal stakes in the Company`s oil and gas wells he obtained under the Founder`s Well Participation Program ("FWPP"). To bail himself out of financial problems, and maximize his own gains, McClendon pursued an aggressive expansion strategy for Chesapeake and piled on enormous debt through off-balance sheet arrangements that were not disclosed on the Company`s balance sheet. Full Article
Chesapeake Energy Corp Trimming North Texas Workforce-Reuters
Reuters reported that Chesapeake Energy Corp is eliminating about 70 jobs from its North Texas operations as the U.S. oil and gas producer seeks to fill funding gap. The cuts, primarily in areas such as public affairs and community relations, represent 8% of its workforce in the prolific Barnett Shale field. About 700 employees will remain in North Texas after the cuts. Full Article
Chesapeake Energy Corp Declares Quarterly Common Stock Dividend
Chesapeake Energy Corp announced that its Board of Directors has declared a $0.0875 per share quarterly dividend that will be paid on July 31, 2012 to common shareholders of record on July 16, 2012. Full Article
Chesapeake Midstream Partners LP Announces Global Infrastructure Partners’ Purchase Of Chesapeake Energy Corporation’s GP And LP Ownership Interests
Chesapeake Midstream Partners LP (CHKM) announced that Global Infrastructure Partners has agreed to acquire all of Chesapeake Energy Corporation’s ownership interest in CHKM for $2.0 billion. The acquisition, which is expected to close by June 29, 2012, will result in GIP’s ownership of 100% of CHKM’s general partner interest and 69% of CHKM’s limited partner units. Concurrent with this announcement, GIP signed a letter agreement to acquire certain midstream assets from Chesapeake Midstream Development (CMD), Chesapeake’s wholly owned midstream subsidiary, and CHKM signed a letter agreement to acquire from Chesapeake certain Mid-Continent gathering and processing assets. The management team remains unchanged. Full Article
Chesapeake Energy Corp In Talks To Sell Pipeline Business-Reuters
Reuters reported that Chesapeake Energy Corp is in late-stage talks to sell nearly all of its pipeline assets for over $4 billion to Global Infrastructure Partners (GIP), according to a person familiar with the matter, as the Company scrambles to close a $9 billion to $10 billion funding shortfall. Infrastructure investment fund GIP is already a partner with Chesapeake in its pipeline company Chesapeake Midstream Partners LP, as well as that firm's general partner. Under the deal being discussed, GIP would buy out Chesapeake's stake in the midstream company and its general partner, as well as other pipeline assets, said the person, who spoke on the condition of anonymity. Full Article
Grant & Eisenhofer Issues Notice Of Shareholder Class Action Against Chesapeake Energy Corp
Grant & Eisenhofer P.A. announced that it has filed a class action lawsuit asserting claims under the Securities Exchange Act of 1934 on behalf of those who purchased or otherwise acquired shares of Chesapeake Energy Corp. between and including April 30, 2009 and May 10, 2012. This Complaint extends the class period beyond the April 17, 2012 end date alleged in the initial class action complaint filed against Chesapeake on April 26, 2012, styled as Dvora Weinstein and Steven S. Weinstein v. Aubrey K. McClendon and Chesapeake Energy Corp., Case No. Civ-12-465-W (W.D.Ok.). The deadline for class members to move to serve as lead plaintiff is June 25, 2012. The Complaint alleges that Chesapeake's Chief Executive Officer, Aubrey K. McClendon, obtained over a billion dollars of Company assets pursuant to the Company's Founders Well Participation Program and borrowed over $1.5 billion dollars against his well interests, presenting material risks to the Company that were not disclosed. In addition to McClendon, the Complaint names as defendants other individuals—members of the Company's Board of Directors and Senior Executives—who compounded the fraud by failing to stop and concealing McClendon's improper activities. Beginning April 18, 2012, Defendants' alleged fraud was revealed to the market in a series of investigative reports published by Reuters, the Wall Street Journal and other news media. Full Article
Chesapeake Energy Corp Looking To Sell Some East Texas Acreage-Reuters
Reuters reported that Chesapeake Energy Corp seeking to sell around 57,000 acres of leaseholdings in East Texas, as the Company works to raise cash to meet an expected funding gap, according to a prospectus released by one of its advisers. The Company said the acreage is in Madison, Leon, Houston, Grimes and Robertson counties in Texas and would give buyers access to the Woodbine oil formation, the prospectus said. Full Article
Icahn Buys Stake In Chesapeake Energy Corp, Seeks Board Changes-Reuters
Reuters reported that Carl Icahn revealed he had bought a 7.6% stake in Chesapeake Energy Corp and called for the natural gas producer to replace at least four directors, saying the board has failed "in a dramatic fashion" in its oversight of management. He asked the Company for two board seats for his own representatives and two for another large shareholder such as Chesapeake's largest, Southeastern Asset Management. The news was latest in a saga that has seen the Company come under intense pressure from investors to improve corporate governance after Reuters reported in April that Chesapeake Chief Executive Aubrey McClendon had taken out more than $1 billion in loans using his personal stakes in thousands of company wells as collateral. Icahn holds 50.1 million shares in the Company, according to a regulatory filing. That would make him the third largest shareholder in the company, according to Thomson Reuters data. Stifel Nicolaus analyst Neal Dingmann said the move by Icahn would be a distraction as the Company raced to complete two key asset sales in the coming months amid the weakest natural gas prices in a decade. "It does add another layer or another level of complication when the primary focus should be getting the asset sales done," he said. Chesapeake said in a statement that its board's immediate priority is finding an independent chairman for the Company. The Company said that once that task is finished, the board will review Icahn's request for representation. Full Article
New Chesapeake CEO Lawler's 2013 pay set at $12.6 mln
May 23 - Doug Lawler, the Anadarko Petroleum Corp executive who was named as Chesapeake Energy Corp's new chief executive officer, will receive salary, bonus and equity awards valued at $12.6 million this year, according to a regulatory filing.
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