Chesapeake Energy (CHK) Issues Reponse to Reuters Aubrey McClendon Hit Piece
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Price: $87.94 +0.71%
Overall Analyst Rating:
NEUTRAL (
Up)
Dividend Yield: 2.4%
Revenue Growth %: -40.0%
Overall Analyst Rating:
NEUTRAL (
Up)Dividend Yield: 2.4%
Revenue Growth %: -40.0%
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Chesapeake Energy (NYSE: CHK) issued a response to the Reuters story about CEO Aubrey K. McClendon activity related to the Founders Well Participation Program:
"The Founders Well Participation Program ("FWPP") has been in place since the company's founding and was re-approved by shareholders by a wide margin in 2005. The terms and procedures for the program are clear and detailed in every proxy for all shareholders to see. Mr. McClendon's interests and Chesapeake's are completely aligned. In addition, there are numerous third-party participants in the Company's wells, including some of the largest energy companies in the world, that monitor the actions of the Company through a number of processes, including well audits, reporting, governmental filings and hearings, participation in development plans and marketing of production. The suggestion of any conflicts of interest is unfounded."
The Board issued its own statement:
"The Board of Directors is fully aware of the existence of Mr. McClendon's financing transactions and the fact that these occur is disclosed in the proxy. Additionally, the total amount of his cost obligations and revenue attributable to the FWPP for each year are detailed in the proxy. The Founders Well Participation Program fully aligns the interests of Mr. McClendon with the company and the Board of Directors supports this program as does the majority of its shareholders."
"The Founders Well Participation Program ("FWPP") has been in place since the company's founding and was re-approved by shareholders by a wide margin in 2005. The terms and procedures for the program are clear and detailed in every proxy for all shareholders to see. Mr. McClendon's interests and Chesapeake's are completely aligned. In addition, there are numerous third-party participants in the Company's wells, including some of the largest energy companies in the world, that monitor the actions of the Company through a number of processes, including well audits, reporting, governmental filings and hearings, participation in development plans and marketing of production. The suggestion of any conflicts of interest is unfounded."
The Board issued its own statement:
"The Board of Directors is fully aware of the existence of Mr. McClendon's financing transactions and the fact that these occur is disclosed in the proxy. Additionally, the total amount of his cost obligations and revenue attributable to the FWPP for each year are detailed in the proxy. The Founders Well Participation Program fully aligns the interests of Mr. McClendon with the company and the Board of Directors supports this program as does the majority of its shareholders."
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