Southeastern Asset Management displayed its confidence with the leadership of Chesapeake Energy Corporation (NYSE:CHK), the second largest natural gas producer in the United States after switching its regulatory filing for its stockholding in the company from Schedule 13D to Schedule 13G on Friday, August 2.

Chesapeake

In its filing, Southeastern Asset Management wrote, “Because of our confidence in management and board of directors, we are converting or Schedule 13D to Schedule 13G.” The fund is the largest shareholder of Chesapeake Energy Corporation (NYSE:CHK). It owns 89, 300, 830 shares or 13.4 percent stake in the energy company.

The value fund, through its chief executive officer, Mason Hawkins together with Carl Icahn fought against the spending spree of Aubrey McClendon, the former CEO of Chesapeake Energy Corporation (NYSE:CHK) and pressured the board of directors of the energy company to focus on important issues that resulted to governance changes.

McClendon resigned from Chesapeake Energy Corporation, shareholders happy

Under the leadership of McClendon, Chesapeake Energy Corporation (NYSE:CHK) was surrounded by different controversies, and investigation causing a significant decline in the market value of the energy company. McClendon resigned from his position. Shareholders were happy with his decision and the stock price of the company surged.

Over the past 52-week range, the stock value of Chesapeake Energy Corporation (NYSE:CHK) went up from its lowest level at $16.23 per share to its highest price at $25.30 a share. The stock is trading around $24.81 per share during the afternoon trading on Friday, in New York.

Chesapeake reported better than expected earnings

Yesterday, Chesapeake Energy Corporation (NYSE:CHK) gave Southeastern Asset Management a good reason to give its confidence to its leadership after reporting a better-than-expected financial results for the second quarter of 2013. The energy company posted $0.51 earnings per share on $4.89 billion revenue. Its earnings results are higher than the consensus estimate of Wall Street analysts of $0.39 earnings per share on $3.21 billion revenue.

The energy company also managed to increase its oil production by 44 percent to 116,000 barrels per day, during the quarter. Chesapeake Energy Corporation (NYSE:CHK) projected that it will be able to increase its oil production by 22 percent to approximately 38 million to 40 million barrels this year.

In May, Chesapeake Energy accepted the recommendation of Southeastern Asset Management to appoint Thomas L. Ryan, president and CEO of Service Corporation International (NYSE:SCI) to  replace Louis A. Simpson as director of the board and become a member of its audit committee.