What Did Chesapeake Tell Investors Today?

Updated

April 1 had been earmarked on every Chesapeake Energy investor's calendar as the day that co-founder and CEO Aubrey McClendon would be stepping down. That day is finally here, and a replacement is nowhere to be found.

Instead, the company has set up a three-member "Office of Chairman" team to continue running the company while moving forward with the ongoing search. This team consists of the current CFO, COO, and non-executive chairman. The news about the CEO-by-committee setup wasn't the only assurance that the company offered to sate investors.

Capital spending will also be a focal point this year, as the company fully expects to stay within its stated $6 billion plans. This is critical because cash flow from operations simply hasn't been able to keep pace with spending over the last several years. Find out more in the video below with Motley Fool analysts Joel South and Taylor Muckerman.


Need a closer look at the company Aubrey McClendon is leaving behind?
Energy investors would be hard-pressed to find another company trading at a deeper discount than Chesapeake Energy. Its share price depreciated after negative news surfaced concerning the company's management and spiraling debt picture. While the debt issues still persist, giant steps have been taken to help mitigate the problems. To learn more about Chesapeake and its enormous potential, you're invited to check out The Motley Fool's brand-new premium report on the company. Simply click here now to access your copy.

The article What Did Chesapeake Tell Investors Today? originally appeared on Fool.com.

Joel South owns shares of SandRidge Energy. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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