Chesapeake Energy Corp. (NYSE: CHK) said it received a subpoena from the U.S. Department of Justice (DOJ) seeking information on the accounting methodology for the acquisition and classification of oil and gas properties.
Shares of the company fell as much as 9.3% in morning trading.
The No. 2 U.S. natural gas producer said in May that it had received subpoenas and demands for documents from the DoJ and some state government agencies in connection with investigations into possible violations of antitrust laws relating to the purchase and lease of oil and natural gas rights.
Chesapeake had also received subpoenas from the DoJ, the U.S. Postal Service and states, seeking information on how the company pays royalties to landowners.
The company said in a regulatory filing on Sept. 29 that it had engaged in discussions with the DoJ, the U.S. Postal Service and state agency representatives and continues to respond to such subpoenas and demands.
Chesapeake had come under scrutiny when former CEO Aubrey McClendon, who helped transform the U.S. energy industry with shale gas, was investigated and charged in March with conspiring to rig bids to buy oil and natural gas leases in Oklahoma.
McClendon died one day later when his car slammed into an overpass.
Reuters reported in 2012 that McClendon had taken out more than $1 billion in loans using his personal stakes in thousands of company wells as collateral.
Chesapeake shares were down 4.2% at $6.46 on Sept. 29. Up to Sept. 28's close, they had risen 50% in 2016.
Recommended Reading
HNR Increases Permian Efficiencies with Automation Rollout
2024-09-13 - Upon completion of a pilot test of the new application, the technology will be rolled out to the rest of HNR Acquisition Corp.’s field operators.
Technip Awarded FEED for BP’s UK Hydrogen Project
2024-08-27 - BP’s H2Teesside is expected to be one of the U.K.’s largest low-carbon hydrogen production facilities and fully integrated with carbon capture technology.
PPG’s Insulation Coating Offers Oil, Gas Asset Protection in High Heat
2024-08-21 - The PPG Pitt-Therm 909 spray-on insutlation coating can withstand high temperatures to promote safety and corrosion resistance.
TGS Awarded 2D Survey in the Sumatra Basin
2024-09-09 - TGS’ Sumatra Basin seismic acquisition is expected to be completed by the end of 2024.
BP to Use Palantir Software to Improve AI in Operations
2024-09-09 - BP and Palantir have agreed to a five-year strategic relationship in which Palantir’s AIP software will use large language models to improve BP operations.