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

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...

Why Register?

Non-subscribers can only view whitepapers by providing name, home and email address, phone number and other information and comment on/rate articles.

Why Subscribe?

Oil & Gas Journal subscribers with login credentials can access these premium features of OGJ Online:

  • Current Issue – an html version of the current week's issue of Oil & Gas Journal.
  • Past Issues – An Electronic OGJ Archive. A keyword-searchable archive of all issues of Oil & Gas Journal dating back to 1990; also searchable by issue date.
  • Market Journal – a weekly round-up of the oil and gas markets, with observations from leading analysts.
  • Editor's Perspective – a short article of insight and opinion by the Editor of Oil & Gas Journal.
  • OGJ Industry Stats – quick access to current industry statistics from Oil & Gas Journal.
  • OGJ Survey Downloads - quick access to exclusive reports from Oil & Gas Journal.


Subscriber Help or Subscribe

Oil & Gas Journal Subscribers: Have your subscription number (from the mailing label on the cover of your Oil & Gas Journal) and e-mail address ready to set up your online account through Customer Service Assistant.

If you're not an Oil & Gas Journal subscriber, start a subscription and gain access to the subscriber areas of OGJ Online now.

Stay Connected