Chesapeake Energy Corporation (NYSE: CHK) has confirmed what many investors probably should have been expecting in relation to the recent CEO double-dip dealing of Aubrey McClendon. Chesapeake issued a notice that the company and Chairman and CEO, Aubrey K. McClendon, have been notified by the Securities and Exchange Commission that its Fort Worth Regional Office has commenced an informal inquiry and requested that the company and Mr. McClendon retain certain documents. What is more irritation is that Chesapeake sat on this data for a day as it noted that the SEC request was received yesterday.
Chesapeake did go on to note that this SEC inquiry “should not be construed as an indication that any violation of the federal securities laws has occurred. The company and Mr. McClendon intend to cooperate with the SEC in responding to its inquiry.”
This morning we saw three analyst calls on Chesapeake if you count a Canaccord Genuity drop of the price target down to $26 per share for its target. The stock closed up 2.7% at $17.19 today and the shares are fluctuating between being up and down in the after-hours.
Today’s news should have been expected, and it is safe to assume that more headline risk remains here. Chesapeake did hit a new 52-week low of $16.70 today and the 52-week range was previously $16.72 to $35.75.
JON C. OGG