Who Keeps Giving Aubrey McClendon So Much Money?

By Tyler Crowe – Mar 14, 2014 at 5:15AM

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 1.60%) 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.

Tyler Crowe has no position in any stocks mentioned. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter, @TylerCroweFool.

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