Chesapeake Energy ( ) is a
producer of natural gas in the United States and according to their 3Q 2007 report, is the
largest independent producer, third overall (including majors) and
the most active driller of new wells in the US.
Their primary growth is due to acquisitions and mergers.
company's world headquarters is located at a corporate campus in
the near northwest side of Oklahoma City, Oklahoma.
Chesapeake was co-founded by CEO
and chairman Aubrey
and former COO
and president Tom
. The company completed
its initial public offering
in early 1993 and now trades under the symbol CHK on the NYSE.
As of August 2007, Chesapeake is the largest independent producer
of natural gas in the United States. The only two larger producers
are majors BP
. McClendon was also recognized
by Forbes magazine
as one of America's
owns oil and natural gas wells in several
states, including Oklahoma, Texas, Arkansas, Louisiana, Kansas, Colorado, North Dakota, Pennsylvania, and New
Mexico. With the recent acquisition of the holding
company of Columbia Natural Resources, LLC and certain affiliated
entities (CNR), they have a leasehold in Appalachia, primarily in West Virginia, eastern Kentucky, eastern Ohio and southern
Chesapeake is the most active driller of
new wells in the United States. As of the end of 2Q 2007, the
company's proved natural gas reserves were approximately 10.0
equivalent. This is up from 9.0 tcfe year end 2006.
Chesapeake has often been mentioned by TV personality and stock
analyst Jim Cramer
on his show Mad Money
As of March 2, 2006, Chesapeake has been added into the S&P
500, replacing Dana Corp.
September 13, 2007, Governor Jodi Rell of
Connecticut accused American natural gas companies, and
specifically Chesapeake, of market manipulation to raise natural
gas prices by choosing to reduce its production.
personally responded with a letter to Rell and Connecticut's
representatives in the United
explaining the justification for the reduction
in production and accusing Rell of hypocrisy in the issue:
If it is true that large speculators have influenced
trends in oil and natural gas prices, who are these speculators
that have driven oil prices to record levels that are punishing
U.S. oil consumers and natural gas prices that are causing the U.S.
natural gas industry to sell their product below oil price
From what we have read, these speculators are
primarily hedge funds and, significant
to this discussion, many are Connecticut-based hedge funds, most
notably last year, Greenwich-based Amaranth
Over the past week, we have examined your campaign
contribution records and it is evident that you have received
donations from principals and employees of many hedge funds, some
of which may have been involved in causing oil prices to be higher
than they should be and natural gas prices to be lower than they