If there ever was a firm that needed to “slim down” it would be Chesapeake Energy (CHK). As former CEO Aubrey McClendon built Chesapeake into a natural gas giant, it became more of a bloated fat cat rather than a sleek fracking machine.
Not to mention all the debt Chesapeake took on.
The bloat has included stakes in more than 100 real estate ventures — including shopping malls, office building and homes — a crude oil trucking company and stakes in smaller “penny stock” exploration firms like Gastar Exploration (GST).
Since McClendon’s ouster, CHK has undergone a massive transformation to get rid of that excess and focus on getting back to the business of drilling for natural gas. And Chesapeake should get there — the firm has prime acreage in almost every shale play in the U.S. That fact could finally make CHK a buy as it returns to its former glory.
Investors certainly think so, too — shares are up a staggering 57% year-to-date.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.