Term Paper: Decision Making at Chesapeake Energy

Pages: 6 (1808 words)  ·  Bibliography Sources: 0  ·  Level: College Senior  ·  Topic: Energy  ·  Buy This Paper

SAMPLE EXCERPT:

[. . .] The foregoing was expected to lead to reduced production and revenue growth in those years, compared to previous projections. This announcement caused the Company's stock to decline 25% in one day on trading volume of over 8 million shares, more than ten times the Company's average daily volume. While the investing public was stunned by this announcement, the Company's insiders do not appear to have been. Many of them sold significant portions of their own personal holdings in Chesapeake's stock throughout this period at prices that were artificially inflated.

This complaint was dismissed on March 3, 2000 in favor of the Company. The Court found that throughout the alleged class period, Chesapeake had disclosed to its investors the precise risks associated with its investments and activities in the Louisiana Trend. The court also determined that the plaintiffs had provided no factual support for their allegations of misstatements or omissions by Chesapeake. In spite of the court victory for Chesapeake, the fact that Company insiders sold during this period, does not look appropriate.

Other than this legal challenge, it does not appear that Chesapeake has done much wrong over the last fifteen years. Rising from nothing, it has become one of the preeminent energy companies in the U.S. It developed a strategy of seeking reserves in an area that it knew well and stuck to that strategy. The Company looked for targets of opportunity, but did not overbuy.

On the financial side, Chesapeake started a program on improving the balance sheet by seeking equity capital. Between 1998 and 2005, they increased their shareholders equity by $3.4 billion. This gave them the capital resources to pursue acquisitions and acquire gas-producing properties. The Company has always operated on the…

NOTE:  We realize that this preview is short, but the Microsoft Word file that you download will contain all 6 page(s) of perfectly formatted text.


[END OF PREVIEW]

Four Different Ordering Options:

?
Which Option Should I Choose?

1.  Buy the full, 6-page paper:  $28.88

or

2.  Buy + remove from all search engines
(Google, Yahoo, Bing) for 30 days:  $38.88

or

3.  Access all 175,000+ papers:  $41.97/mo

(Already a member?  Click to download the paper!)

or

4.  Let us write a NEW paper for you!

Ask Us to Write a New Paper
Most popular!

Small Business Management Challenges Essay


Travel and Tourism in Oklahoma City Research Paper


Global Warming. The Reality Thesis


View 6 other related papers  >>

Cite This Term Paper:

APA Format

Decision Making at Chesapeake Energy.  (2005, May 30).  Retrieved July 18, 2019, from https://www.essaytown.com/subjects/paper/decision-making-chesapeake-energy/428404

MLA Format

"Decision Making at Chesapeake Energy."  30 May 2005.  Web.  18 July 2019. <https://www.essaytown.com/subjects/paper/decision-making-chesapeake-energy/428404>.

Chicago Format

"Decision Making at Chesapeake Energy."  Essaytown.com.  May 30, 2005.  Accessed July 18, 2019.
https://www.essaytown.com/subjects/paper/decision-making-chesapeake-energy/428404.