Chesapeake Energy is an oil and gas exploration company based out of Oklahoma City and operating in numerous states across the country. The company was founded in 1989 by current CEO Aubrey McClendon and former president Tom L. Ward. From the beginning, the company has focused its energies on using new techniques like horizontal drilling and hydraulic fracturing to extract unconventional sources of natural gas.
The company manages operations in four shale formations, where they use fracking to access oil and gas. The largest of these is the Marcellus Shale, located predominately in Pennsylvania, New York, and West Virginia.
According to the company’s website, Chesapeake is “the second-largest producer of natural gas, a Top 15 producer of oil and natural gas liquids and the most active driller of new wells in the U.S.” Chesapeake is also the largest leasehold owner in the U.S. with approximately 14 million net acres under lease.
Chesapeake hopes to gain 50% of their revenue from oil production by 2013.
In June 2012, a Reuter’s article exposed Aubrey McClendon for using millions of corporate dollars and resources for personal expenses. As a result, the Board of Directors decided to strip McClendon of his title as chairman but he remains the CEO. After the decision was made, the Board of Directors altered the company’s bylaws, allowing McClendon to retain his executive powers as chairman. Archie Dunham, former Chairman of ConocoPhillips, was appointed as the Non-Executive Chairman.