CHESAPEAKE ENERGY $20.57 (New York symbol CHK; TSINetwork Rating: Extra Risk) (405-848-8000; www.chkenergy.com; Shares outstanding: 664.7 million; Market cap: $13.7 billion; Dividend yield: 1.7%) reports that its controversial co-founder, CEO and chairman, Aubrey K. McClendon, has agreed to retire.
McClendon is under investigation by the U.S. Securities and Exchange Commission for taking out $1.1 billion of loans from EIG Global Energy Partners that may have put him in a conflict of interest.
The potential for further conflicts of interest could have slowed the company’s restructuring and eroded investor confidence.
Chesapeake is a buy for aggressive investors.