IEO Could Move with Cheaspeake (CHK) In Play

May 1, 2012 9:29 AM EDT
iShares Dow Jones US Oil & Gas Ex Index EFT (NYSE: IEO), should see action today considering its exposure to newsmaker, Cheaspeake Energy Corp. (NYSE: CHK), which is up 10% premarket.

CHK today announced that its Board of Directors has renegotiated terms of its FWPP program with CEO Aubrey K. McClendon. The program, which allowed McClendon to invest private money in oil wells, created a potential conflict of interest with investors. McClendon will also relinquish his role as Chairman and the company will name a non-executive Chairman.

Chesapeake Energy is the second-largest producer of natural gas and a top 15 producer of oil and natural gas liquids. CHK has a 3.43 weighting in IEO.

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