Chesapeake Energy's (CHK) Lawler Sees Low Nat Gas Prices as Biggest Problem for Company

Chesapeake Energy Corp. (NYSE: CHK) CEO Doug Lawler gave his first in-depth interview since assuming the role of CEO two years ago.

While many assumed that Lawler had big boots to fill, the executive didn't see it that way, according to an interview with the WSJ. He thinks that filling someone else's shoes means taking the same path, but the CEO aimed instead to change the entire company.

Lawler took over as CEO following the ouster of founder Aubrey McClendon in 2013.

After taking a look at the company's operations, Lawler said one surprising discovery was that 54 percent of Chesapeake's projects weren't profitable in 2012.

Problems included Chesapeake and McClendon signing contracts to drill hundreds of wells, whether they would be economically viable or not, and having the company transport an certain amount of natural gas on specific pipelines, or face large penalties.

Since Lawler took over, Chesapeake has cut spending by over half and has reduced headcount by some 67 percent. Two-thirds of the company's lawsuits have also been resolved.

Lawler now believes Chesapeake's biggest challenge resides outside the company: low nat gas prices.

Shares of Chesapeake are indicated for a lower open Friday.

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