Aubrey McClendon hasn't taken his retirement from Chesapeake Energy (NYSE:CHK) 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 (NYSE:HES) 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 (NASDAQOTH:MHRCQ) or Gulfport Energy (NASDAQ:GPOR) to get the most out of a Utica investment.
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