The WSJ interview with the CEO of Chesapeake Energy (NYSE:CHK) ironically identifies one of the biggest problems with the company and the industry now. After a couple of years on the job, the interview discusses the issues from the past and not the solutions for the future.
The stock now trades at levels not seen under the previous executive leader. The question is whether CEO Doug Lawler has any solution to the current industry supply glut whether or not Aubrey McClendon is to blame for the past. The recent results in the Utica Shale suggest far worse for the industry is yet to come.
With Chesapeake Energy trading at new multi-year lows, an interview blaming the issues on the lack of financial discipline on the founding CEO probably isn't a huge shock. The desire for better business practices is what activists like Carl Icahn envisioned when driving McClendon out of the CEO role and placing Lawler in his place. The stock made an initial jump to nearly $30 as it appeared a reduction in spending would turn around the prospects of Chesapeake Energy. The stock has headed down ever since as capital spending cuts haven't solved the industry problems of over production.Read the whole article by clicking here.
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