Chesapeake internal probe finds no evidence of intentional wrong - WOWK 13 Charleston, Huntington WV News, Weather, Sports

Chesapeake internal probe finds no evidence of intentional wrongdoing

Posted: Updated:
  • Local NewsLocal NewsMore>>

  • UPDATE: All Northbound lanes open on I-77 at East River Mountain Tunnel

    UPDATE: All Northbound lanes open on I-77 at East River Mountain Tunnel

    Saturday, July 26 2014 6:42 PM EDT2014-07-26 22:42:00 GMT
    All northbound lanes are back open after a tractor trailer that caught fire inside the East River Mountain Tunnel on Friday. It happened in the northbound lanes of the tunnel that divides Mercer and Bland around 2:00 Friday afternoon.
    All northbound lanes are back open after a tractor trailer that caught fire inside the East River Mountain Tunnel on Friday. It happened in the northbound lanes of the tunnel that divides Mercer and Bland around 2:00 Friday afternoon.
  • Sistersville Woman Crowned Mrs. West Virginia, Will Compete for National Title

    Sistersville Woman Crowned Mrs. West Virginia, Will Compete for National Title

    Tuesday, July 15 2014 4:17 AM EDT2014-07-15 08:17:38 GMT
    A Sistersville mother, wife, and soon-to-be teacher, holds another very impressive title as she gets ready to take on the competition on a national stage.Mrs. West Virginia, Melissa Smith, will compete for the title of "Mrs.United States," in September. Smith travels throughout the state right now helping to push her platform. "Right now, I'm very focused on improving literacy education. I'm going to be an elementary school teacher and I have been traveling throughout West Virginia reading to...
    A Sistersville mother, wife, and soon-to-be teacher, holds another very impressive title as she gets ready to take on the competition on a national stage.Mrs. West Virginia, Melissa Smith, will compete for the title of "Mrs.United States," in September. Smith travels throughout the state right now helping to push her platform. "Right now, I'm very focused on improving literacy education. I'm going to be an elementary school teacher and I have been traveling throughout West Virginia reading to...
  • Federal judge in Martinsburg, West Virginia, sends 10 to prison for violating probation

    Federal judge in Martinsburg, West Virginia, sends 10 to prison for violating probation

    Sunday, July 6 2014 11:00 AM EDT2014-07-06 15:00:12 GMT
    Nine Martinsburg, West Virginia, residents and another from Keyser were sentenced to federal prison for breaking the law while they were on supervised release or probation.
    Nine Martinsburg, West Virginia, residents and another from Keyser were sentenced to federal prison for breaking the law while they were on supervised release or probation.

An internal probe of Chesapeake Energy found no evidence of intentional misconduct on behalf of its CEO, nor did it violate anti-trust laws, the company's board of directors announced Wednesday.

The board of directors said they have reviewed co-founder and CEO Aubrey McClendon's financial arrangements between himself and companies that also do business with Chesapeake. McClendon has already agreed to step down from the company on April 1.

"I am extremely proud of what we have built over the last quarter of a century, and I am confident that Chesapeake is in a great position to continue to grow and achieve great success in the future as it realizes the full value of its outstanding assets," McClendon said at the time. "While I have certain philosophical differences with the new Board, I look forward to working collaboratively with the company and the Board to provide a smooth transition to new leadership for the company."

According to the release, among the transactions reviewed were the 2008-12 financing arrangements between EIG Global Energy Partners and affiliates of McClendon regarding financing of his participation in the Founders Well Participation Program, as well as the preferred stock investments by EIG in CHK Utica LLC and CHK Cleveland-Tonkawa LLC. The review, the board states, "did not reveal any improper benefit to Mr. McClendon or increased cost to the company" due to his financial arrangements.

The review by the board's audit committee involved more than 50 interviews and millions of pages of documents.

"Based on the documents reviewed and interviews conducted, no intentional misconduct by Mr. McClendon or any of the company's management was found by the Board concerning these relationships and/or these transactions and issues," the release stated.

Under the Founder Well Participation, McClendon was given the right to invest up to 2.5 percent working interest in new wells drilled by Chesapeake. Chesapeake was put under pressure when analysts became wary of the company's financial structure.

Media reports revealed McClendon borrowed up to $1.1 billion from EIG Global Energy Partners, a private-equity firm involved with the company. Chesapeake had not disclosed the loans. EIG also is an investor in Chesapeake.

Analysts criticized the conflicts of interests of the scenario among EIG, Chesapeake and McClendon soon after it was reported.

 The company also announced that Chesapeake had not find evidence it violated antitrust laws in buying Michigan oil and gas rights in 2010.