Chesapeake Energy (CHK) Surges as Company Gets Real on Well Program

May 1, 2012 9:15 AM EDT
Chesapeake Energy (NYSE: CHK) is ramping 8 percent early Tuesday after the company agreed to terminate the Founder well program early and announced that Aubrey McCelndon will relinquish his role as Chairman.

The Founder Well Participation Program (FWPP) will now terminate on June 30, 2014, 18 months before the end of its current term on December 31, 2015.

The Board of Directors will name an independent, Non-Executive Chairman in the near future. The Board’s Nominating and Corporate Governance Committee is considering potential candidates with no previous substantive relationship with Chesapeake and will be soliciting input from major shareholders.

Upon the appointment of a Non-Executive Chairman, Mr. McClendon will relinquish the position of Chairman and continue as Chief Executive Officer.

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