Image source: Chespeake Energy corporate website
What: Shares of Chesapeake Energy are up 23% at the end of trading today, thanks to a boost from oil prices and the announcement that it wasn't included in the indictment charges against its former CEO, Aubrey McClendon.
So what: Thanks to a boost in oil prices that has West Texas Intermediate hovering close to $35 a barrel for the first time in a couple of months, it appears that the market is getting a little more hopeful that higher oil and gas prices will help to pull highly indebted oil and gas producers such as Chesapeake out of the doldrums. It may be a little early to say that oil prices at this level are enough to keep Chesapeake afloat, but it's a start.
Another aspect that's probably helping Chesapeake's stock is that it wasn't named in the charges brought against McClendon that he had actively participated in a scheme to suppress the contract rates for land leases in Oklahoma. Company executives have said that they have been cooperating with the Department of Justice about the indictment.
On a related note, McClendon died today in a car crash .
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The article Shares of Chesapeake Energy Surge 23% Today Thanks to Oil Prices and No Court Date originally appeared on Fool.com.
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