TribLIVE

| Business

 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Chesapeake CEO cleared of intentional wrongdoing

Email Newsletters

Click here to sign up for one of our email newsletters.

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

'American Coyotes' Series

Traveling by Jeep, boat and foot, Tribune-Review investigative reporter Carl Prine and photojournalist Justin Merriman covered nearly 2,000 miles over two months along the border with Mexico to report on coyotes — the human traffickers who bring illegal immigrants into the United States. Most are Americans working for money and/or drugs. This series reports how their operations have a major impact on life for residents and the environment along the border — and beyond.

By The Associated Press
Wednesday, Feb. 20, 2013, 1:03 p.m.
 

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 on Wednesday that “no intentional misconduct by Mr. McClendon or any of the company's management was found.”

McClendon, who founded Chesapeake in 1989 and oversaw it becoming the second- largest natural gas producer in the United States, 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 similar deals McClendon may have struck.

“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,” the company said.

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.

Subscribe today! Click here for our subscription offers.

 

 


Show commenting policy

Most-Read Business Headlines

  1. Shell shovels $30M into proposed Beaver County plant site
  2. Bond funds hold onto cash
  3. Extended oil slump takes toll
  4. Tech Q&A: Why you should test your router
  5. Muni bond funds stressed
  6. Companies hand out perks, benefits instead of pay raises
  7. Small business hangs on fate of Export-Import Bank
  8. Of Caitlyn Jenner and workplace restrooms
  9. Off-duty but on call: Suits seek overtime
  10. When it comes to home ownership, Hispanics finding locked doors
  11. $2-per-gallon gas expected by year’s end, but not in Western Pa.