Chesapeake Energy Corporation (NYSE:CHK) CEO, Aubrey McClendon, is off the hook—at least according to an internal investigation of his activities. ValueWalk has featured an in depth coverage of his controversial actions over the last several years, including everything from the hedge fund he ran, which traded the same commodities Chesapeake Energy produced, to the sizeable personal loans that amounted to hundreds of millions of dollars, which McClendon loaned himself out of the company’s bank accounts.
Chesapeake Energy Corporation (NYSE:CHK) announced today that its internal probe found no “intentional” wrongdoing when it examined his actions as the company’s CEO. McClendon is set to retire as the company’s board chairman this year, and many investors couldn’t be happier about it. The company’s stock rose after the announcement about McClendon’s impending retirement.
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The company didn’t give a complete explanation of how it decided that McClendon didn’t “intentionally” do wrong nor did it release a full report detailing its internal investigation. However, it did say that the company’s internal probe involved more than 50 interviews with company executives and executives of other companies.
The statement from Chesapeake Energy Corporation (NYSE:CHK) said the investigation examined McClendon’s loans EIG Global Energy Partners and other “affiliates of McClendon.” It also said the probe looked at relationships which involved both McClendon and Chesapeake doing business with the same financial institutions. Other areas of investigation included the hedge fund McClendon operated and other financial matters.
The probe also found that there was no violation of antitrust laws in connection with the company’s purchase of oil and gas rights in Michigan in 2010. Chesapeake Energy Corporation (NYSE:CHK) was subpoenaed by the U.S. Department of Justice on the matter last year. The company has said it cooperated with the DOJ and based its decision on this matter on its cooperation with authorities and a review conducted by outside counsel.
Of course, the state and federal probes of the company still continue in spite of its own findings.