Chesapeake Energy's CEO (CHK) Aubrey McClendon Feels Pain Of Recent Stock Purchases

September 9, 2008 4:04 PM EDT

Chesapeake Energy's (NYSE: CHK) Co-Founder/Chairman/CEO Aubrey McClendon is one smart man, and rich to boot, but his last few insider purchases in Chesapeake's stock have been painful. Anyone following him recently would have been hurt as the bottom dropped-out in the stock with the free-fall in natural gas.

In July, Aubrey bought 750,000 shares of Chesapeake Energy at $57.35. In June, he bought 200,000 shares in the high-$59 range. In May, Aubrey bought 1.1 million shares in the mid-$50s. He was also a big buyer on the stock in February and March in the mid-$40 range. With the stock of Chesapeake currently trading at $39, you have to go back to purchases Aubrey made in January to be in the money.

But don't feel bad for Aubrey, he owns over 33,469,359 shares of the stock which is worth over $1.3 billion.

You may have seen Aubrey is television commercials recently supporting T. Boone Pickens 'Pickens Plan'. The plan, if ever enacted by the U.S. government, would be a boon (or 'boone') for Aubrey as it includes a push to use natural gas to power cars.

When will Aubrey load up the truck again and should you following him this time? I expect Aubrey to re-load again soon as the stock is off nearly 50% from recent highs. This time it might be wise to follow him. If you go back to 2006 and 2007, he was buying in the $20-$30 range which proved to be a great long-term bet even after the recent collapse.

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Related Entities

• BP Capital Management
• T. Boone Pickens
• Aubrey McClendon

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