Chesapeake Energy Corporation (CHK) News: Not Really a Redemption Period, September 21st Options, Protests & More

Editor’s Note: Related Tickers: Chesapeake Energy Corporation (NYSE:CHK), SandRidge Energy Inc. (NYSE:SD)

United States: When A Redemption Period Is Not Really A “Redemption” Period: A Red Flag Courtesy Of Chesapeake Energy (Mondaq News Alerts)
In May 2013, the Southern District of New York decided Chesapeake Energy Corporation (NYSE:CHK) v. Bank of New York Mellon Trust Co., N.A.1 The decision, which found that an early redemption period in an indenture referred to the deadline to give notice and not the deadline to actually redeem the bonds, is notable because it raises possible red flags about the industry-standard language used for many trust indenture bond redemption clauses. Chesapeake Energy Corp. (“Chesapeake”) decided to redeem notes earlier than their stated maturity date. Chesapeake Energy Corporation (NYSE:CHK) sent notice of its plan to the trustee, The Bank of New York Mellon Trust Company, N.A. (“BNY Mellon”), on the last day that their indenture provided for an Early Redemption Period, which allowed for early redemption of the bonds.

Chesapeake Energy Corporation (NYSE:CHK)September 21st Options Now Available For Chesapeake Energy Corp. (Forbes)
Investors in Chesapeake Energy Corporation (NYSE:CHK) saw new options become available today, for the September 21st expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 89 days until expiration the newly available contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. The put contract at the $19.00 strike price has a current bid of $1.34. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $19.00, but will also collect the premium, putting the cost basis of the shares at $17.66 (before broker commissions).

It’s a big fracking world out there, and people are getting angry (Globe and Mail)
Carrollton, a village of 3,000 in the Appalachian hills of eastern Ohio, has become a battleground in an energy revolution that has global consequences. Chesapeake Energy Corporation (NYSE:CHK) is drilling a nearby exploration well more than 1,800 metres deep into the Utica shale formation in search of commercial quantities of natural gas. In scenes similar to ones played out over recent years in neighbouring Pennsylvania and New York, local residents and statewide activists in Ohio are raising alarms about the invasion of oil companies eager to drill through bedrock and use hydraulic fracturing – fracking – to test the newest prospects in the shale-gas boom that has dramatically transformed North America’s energy picture.

A New Era Dawns for SandRidge Energy (DailyFinance)
It’s been bad year to be a highly paid CEO of an underperforming energy company. This past January we found out that Chesapeake Energy Corporation (NYSE:CHK) co-founder Aubrey McClendon was “retiring” after philosophical differences with his board. Now, SandRidge Energy Inc. (NYSE:SD) CEO Tom Ward, also a co-founder of Chesapeake Energy, is being sent packing. Unfortunately, for Ward, there won’t be any cake served at a retirement party, for he’s being let go effective immediately. It could have been worse: The company, which had hired an independent investigation firm to look into allegations of improper related-party transactions, determined that Ward’s actions didn’t merit him being terminated with cause. Despite that finding, this isn’t the most graceful exit for the company’s founder.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!