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Chesapeake's (CHK) McClendon Will Address Investors Following Long 'Rest'; Focus is on Permian Assets

September 6, 2012 12:16 PM EDT
Chesapeake Energy (NYSE: CHK) shares are higher on the session following a better-than-expected nat gas read earlier. However, investors in the company still have their sole focus on more than just a weekly update; they want to know where McClendon is.

Well, McClendon is about to get back in the thick of it. According to reports out today, the Chesapeake CEO will end a months-long hiatus from public speaking and address analysts and investors at a Barclays conference in New York today.

McClendon took a step back from the spotlight after Chesapeake's Board took away the title of Chairman following a scandal involving personal loans levered on company assets. Chesapeake's largest shareholder, Southeastern Asset Management, urged McClendon to focus more on operations than on PR stints. Prior to the request, McClendon was a staple on the energy conference circuit, touting the benefits of nat gas as a better alternative to crude oil and coal.

Southeastern held as 13.5 percent stake in Chesapeake as recent as June, according to Bloomberg-compiled data.

At the Barclays event, investors and analysts will look for any hints in McClendon's comments as to asset sales in the Permian Basin, including oil and gas fields. Bloomberg notes that the asset sales are key to Chesapeake paying off a $4 billion bridge loan from Goldman Sachs. McClendon is unlikely to address sales directly, given Chesapeake's efforts to disclose such moves with quarterly regulatory filings.

Should something surface, Chesapeake's asset sales would total about $11.7 billion on the year, close to the $13 billion to $14 billion the company planned to complete before the end of 2012.

Shares of Chesapeake are up 0.7 percent Thursday, following EIA inventory data showing nat gas stockpiles rose by 28 billion cubic feet last week, less than 33 bcf expected by analysts.


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