CHK Plans For New Leadership – McClendon Retiring

Chesapeake Eagle Ford Rig Map

Chesapeake Rig Map | Click to Enlarge

Chesapeake’s CEO, Aubrey McClendon, has announced plans to retire as of April 2013. McClendon founded Chesapeake in 1989 and, as a landman, was well suited to oversee the company’s shale land grab over the past decade.

Chesapeake has a market cap of more than $13 billion, with underlying assets that have significant growth potential.

Mr. McClendon was a fairly controversial figure in the investing world as he led the most aggressive leasing strategy ever implemented. The company has leased millions of acres and in turn flipped a portion of the assets to other companies. The deals funded the company’s shale leasing spree.

McClendon came under scrutiny multiple times throughout the past several years as his position magnified. The company’s “founder well incentive”, lucrative pay packages, and disagreements with a new board of directors eventually led to his demise. [Read more…]