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Who Keeps Giving Aubrey McClendon So Much Money?

By Tyler Crowe - Mar 14, 2014 at 11:15AM

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In less than a year, McClendon's American Energy Partners has raised $3 billion to start drilling in the Utica, but investors should look at Magnum Hunter Resources and Gulfport Energy instead.

Aubrey McClendon hasn't taken his retirement from Chesapeake Energy ( CHKA.Q ) sitting down. Since his departure in April, he has raised almost $3 billion in equity for his new venture, American Energy Partners. Following up on his final few years at Cheseapeake, his new company is loading up on thousands of prospective acreage in the Utica Shale formation in Ohio. It may be a good idea, but he is also paying a pretty hefty premium to get that acreage. The $924 million price tag American Energy Partners paid to Hess ( HES 3.64% ) for acreage in the Utica was almost 50% more than the average cost per acre in the region.

McClendon has been known for finding good shale oil and gas plays, but his company may not be the best investment for you. Find out in the video below why investors should probably lean more toward Magnum Hunter Resources (NYSE: MHR) or Gulfport Energy ( GPOR ) to get the most out of a Utica investment.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Chesapeake Energy Corporation Stock Quote
Chesapeake Energy Corporation
CHKA.Q
Hess Corporation Stock Quote
Hess Corporation
HES
$79.97 (3.64%) $2.81
Exxon Mobil Corporation Stock Quote
Exxon Mobil Corporation
XOM
$62.27 (1.12%) $0.69
Gulfport Energy Corporation Stock Quote
Gulfport Energy Corporation
GPOR

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