NEW YORK —
An investigation by Chesapeake Energy Corp.’s board of directors into outgoing CEO Aubrey McClendon’s personal financing deals with company partners has found the deals did not benefit McClendon improperly or cost the company more.
The company said Wednesday that “no intentional misconduct by Mr. McClendon or any of the company’s management was found.”
McClendon, who founded Chesapeake in 1989 and saw it become the second largest natural gas producer in the U.S., had a special arrangement with the company that allowed him to invest personally in the oil and gas wells the company drilled.
As the company expanded and oil and gas prices fluctuated, McClendon needed to borrow money to pay for his stakes in the wells and he used those stakes as collateral to do so.
Last spring Reuters reported that McClendon received loans of $1.4 billion from an investment firm called EIG Global Energy Partners that was negotiating a separate oil and gas deal with Chesapeake.
The probe sought to discover if McClendon, who was then chairman and CEO of Chesapeake, received a special deal from EIG and in return sold the company’s assets at lower-than-market value. The probe also looked further back into other similar deals McClendon may have struck.
The company announced Wednesday that “The review of the financing arrangements did not reveal any improper benefit to Mr. McClendon or increased cost to the company as a result of the overlap in the financial relationships.”
Chesapeake said McClendon had no comment on the findings.
McClendon was stripped of his role as board chairman in May. Last month Chesapeake announced McClendon would leave the company April 1 amid philosophical differences.
Chesapeake shares slipped 4 cents to $20.32 in afternoon trading Wednesday. They have traded in a 52-week range of $13.32 to $26.09.
Business
Chesapeake CEO cleared of intentional wrongdoing
- Business
-
-
Waiting for word from Bernanke, stocks move higher
It’s all about the Fed. Still.
-
Missouri moves to lift ban on foreign farm owners
Weeks before a Chinese conglomerate agreed to buy Smithfield Foods Inc. in the largest such takeover of a U.S. business, Missouri lawmakers quietly approved legislation removing a ban on foreign ownership of agricultural land.
-
NSA director says plot against Wall Street foiled
The U.S. foiled a plot to bomb the New York Stock Exchange because of the sweeping surveillance programs at the heart of a debate over national security and personal privacy, officials said Tuesday at a rare open hearing on intelligence — a set-piece for supporters of the spying.
-
Chrysler expected to formally refuse Jeep recall
In one of the biggest-ever showdowns between an automaker and the government, Chrysler on Tuesday is expected to file papers explaining its refusal to recall 2.7 million older Jeep SUVs that are at risk of catching fire in rear-end collisions.
-
Woman admits role in prearranged funeral fraud
A St. Louis County woman has admitted to a role in a pre-arranged funeral scam that allegedly bilked customers out of as much as $600 million.
-
Sprint sues to stop Dish Clearwire buyout
Sprint is suing to stop Dish Network’s buyout of wireless data network operator Clearwire. The nation’s third-largest cellphone carrier said the proposed deal violates the rights of Sprint and other Clearwire shareholders.
-
G-8 summit turns focus to clampdown on tax-dodging
World leaders at the G-8 summit declared Tuesday that governments must work together to close loopholes that allow multinational corporate giants to avoid paying taxes in their home countries.
-
Stocks edge higher on home building, low inflation
U.S. stocks were up in early trading Tuesday, boosted by government reports of gains in home construction and low inflation. Expectations that the Federal Reserve will keep in place programs meant to prop up the economy also drove the market higher.
-
With Samsung, Jay-Z’s business continues to boom
He really is more than a businessman.
-
World looks to Bernanke to clarify stimulus plans
Is the era of ultra-low interest rates nearing an end?
- More Business Headlines
-
Hoffa Mystery Still Fascinates After 4 Decades
Raw: 1 Dead in Shooting at Mo. Apartment Complex
Raw: Huge Fire Near Yosemite National Park
Raw: Obama Arrives in Berlin
3 Charged in Ohio With Enslaving Mom, Daughter
Obama Seeks G-8 Support on Syria
Raw: Volcano Erupts Near Mexico City
Kid Couture: Spending Big Bucks on Babies
Suicide Bombs Target Baghdad Mosque, Killing 29
Military Plans to Put Women in Combat Jobs
Solar Power Chargers in NYC Parks
Civil Rights Groups Sue NYPD Over Muslim Spying
Raw: First Lady, Daughters Enjoy Irish Sights
RAW: NSA Director Says 50 Plots Foiled
Boeing, Airbus Battle for Sales Supremacy
