Point of View: Chesapeake's McClendon: Leveraging volatility key to unlocking long-lived reserves value

03/24/2003
The management of Chesapeake Energy Corp., Oklahoma City, has no hesitation playing the contrarian among US natural gas producers, which has resulted in Chesapeake's reputation as an aggressive and dynamic hedger of gas during price swings.Aubrey K. McClendon, Chesapeake chairman and CEO, notes that his company made more than $200 million in 2001-02 through its hedging policies."We recognized that natural gas prices were unusually high in early 2001. We felt like gas prices at that level—and prices that were being projected out on the future on the New York Mercantile Exchange—at that time probably were not sustainable. We felt like it was time to lock in the higher prices...
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