Chesapeake Energy to give up assets to GIP
MENAFN.com, 10 Jun 2012
(MENAFN) Chesapeake Energy Corp, US second largest natural gas producer, plans to give up its pipeline and related assets to Global Infrastructure Partners (GIP) for more than USD4 billion, Reuters reported.
The company seeks to plug an estimated USD10 billion funding shortfall, and is trying to convince its shareholders that it is still a good investment despite steep drops in profits and corporate governance scandals centered around Chief Executive Officer Aubrey McClendon.
A decline in natural gas prices trimmed Chesapeake's earnings, putting the company under pressure to sell assets and cut spending to reduce debt. Full story
Chesapeake Directors Resign After Shareholder Rejection
BusinessWeek, 8 Jun 2012
Chesapeake Energy Corp. (CHK) (CHK) shareholders rejected two directors involved in a probe of Chief Executive Officer Aubrey McClendon’s personal finances after slumping energy prices and overspending wiped out $2.6 billion in market value this year.
“Something is out of whack here at Chesapeake,” Gerald Armstrong, a Denver-based shareholder, said during an address to the annual meeting. “The absence of good governance practices has become more apparent. Accountability is what it’s all about.” Full story
Related:
Temasek Invests US$500 Million in Chesapeake as Part of US$1.2 Billion Spent on Resources - Bloomberg (12 May 2010)
