Chesapeake leaves investors wondering what’s next 25 Jun 2012 The U.S. gas producer is feverishly trying to dispel a cowboy reputation, including by shaking up the board. But emails suggesting Chesapeake colluded to buy land on the cheap are a setback. With all that’s happened so far, it’s also hard to believe this scandal will be the last.
Chesapeake gets pistol-whipping from shareholders 8 Jun 2012 Owners of the besieged U.S. gas giant voted overwhelmingly against renaming directors and the board’s executive pay plan, while favoring a slew of investor proposals to improve Chesapeake’s governance. It’s hard to see how Aubrey McClendon can keep running this circus.
Chesapeake may need to sacrifice more than assets 29 May 2012 The embattled U.S. gas producer is already dispensing with energy fields to raise cash. Now investors, including uppity Carl Icahn, want directors ousted. Replacing two up for election without Chesapeake’s OK is near impossible. But resistance is counterproductive at this stage.
Pricey Chesapeake medicine highlights its sickness 12 May 2012 The embattled energy firm is borrowing $3 bln at 8.5 percent to repay a loan whose terms might otherwise prevent asset sales. This buys time. But it makes even more obvious Chesapeake’s unsustainable reliance on selling choice assets to fund its persistent cash drain.
Pampered board shares blame for Chesapeake fiasco 9 May 2012 On paper the gas company appears to have a good mix of directors. But they didn’t just fail to stop CEO Aubrey McClendon’s excesses - they often approved. Time constraints and bumper pay and perks may have helped keep them subservient and led to them failing shareholders, too.
Cash-flow drain puts Chesapeake on fire-sale alert 8 May 2012 The ailing gas driller once again promises financial discipline and is braced for $20 billion of asset sales. But the firm’s forecasts for gas prices, capital expenditure and cash flow are both too rosy and too contradictory. That means more family silver will have to go.
Kinder pays top dollar to enter energy big league 17 Oct 2011 If regulators give the nod, a new $94 bln pipeline titan will be born, becoming among the biggest U.S. energy firms. Kinder is paying more than is justified by the synergies for El Paso. But Kinder’s chief has done investors proud in the past and is not to be underestimated.