Chesapeake CEO Aubrey McClendon ‘deeply sorry’ as shares plunge on disappointing earnings

Chesapeake Energy chief executive and co-founder Aubrey McClendon told investors today he was “deeply sorry” for the distraction caused by media reports about his financial dealings, as the company’s share price plunged following a disappointing first-quarter result.

According to Reuters, McClendon operated a private hedge fund that traded in commodities while serving as chief executive of Chesapeake, raising a potential conflict of interest.

The Reuters report comes a day after the Chesapeake board said it would strip McClendon of his chairmanship following other media reports that he used personal shares in company wells to obtain millions of dollars worth of loans from companies with financial links with Chesapeake, according to Bloomberg.

Shares in Chesapeake, the second-largest gas producer in the United States, fell as much as 14 percent today after the company reported a net loss of $71 million, or 11 cents per share, for the first three months of the year, as gas prices remained depressed, the Associated Press reported.

That compares with a loss of $205 million, or 32 cents per share, for the same period last year, CNBC said.

Earnings excluding one-time gains and losses were 18 cents per share, falling well short of analyst expectations for 29 cents, CNBC said.

According to the Wall Street Journal, credit rating agencies and stock analysts have slashed their outlook for the gas giant because of its heavy debt, complicated financial dealings and low natural gas prices.

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