The Skeletons Knocking Around in Chesapeake Energy’s Closet
An article on The Motley Fool investors website takes a look at Chesapeake Energy and the potential skeletons that may be hiding in their closet. The purpose of the article is to make the point that potential suitors who may want to buy Chessy may want to reconsider that concept because of Chessy’s skeletons–much to dismay of corporate raider Carl Icahn who has invested a lot of his own money on the gamble that he can hack off entire pieces of Chessy and make it an attractive buy-out option, boosting his own fortune even more (Tolkien’s Smaug sitting atop mountains of ill-gotten gold comes to mind).
So which skeletons do we already know about in Chessy’s closet, and which ones don’t we know about (yet)?…
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Chesapeake Energy continues to find itself under the metaphorical gun with respect to royalty payments in Pennsylvania. The PA legislature is considering a bill (HB 1684) that would plug a legal loophole and require Chesapeake and other drillers to pay landowners a 12.5% minimum royalty regardless of post-production costs (see