Going From Bad to Downright Dreadful at Chesapeakehttp://www.fool.com/investing/general/2012/06/07/going-from-bad-to-downright-dreadful-at-chesapeake.aspx Brian Stoffel
June 7, 2012
To say that 2012 has been a year Chesapeake Energy (NYSE: CHK ) shareholders would like to forget is a vast understatement. For those just catching up, let's review:
Today, a special report released by Reuters -- "The Lavish and Leveraged Life of Aubrey McClendon" -- is adding even more fuel to the fire.
A few details
First, there is AKM Operations, a small division of the company employing six full-time workers. Their main task: managing several business aspects of McClendon's personal life. Though regulatory filings make reference to the existence of such a group, its true scope was never made clear to shareholders. In 2010, this group worked over 15,000 hours and cost the company $3 million. It appears, however, that McClendon reimbursed the company for the bulk of the expenses.
Where that money is coming from, on the other hand, is another question. According to the report: "Although McClendon's net worth is pegged by Forbes at $1.1 billion, he has mortgaged much of what he owns: the restaurants, the wine, the boats, the homes, proceeds from three accounts at Goldman Sachs, his stake in private companies and his stake in thousands of Chesapeake wells."
McClendon owns a 19% stake in the Oklahoma City Thund