By Joe Carroll - Mon Apr 23 20:30:15 GMT 2012

F. Carter Smith/Bloomberg

Aubrey McClendon, chairman and chief executive officer of Chesapeake Energy Corp.

Aubrey McClendon, chairman and chief executive officer of Chesapeake Energy Corp. Photographer: F. Carter Smith/Bloomberg

Workers labor on a Chesapeake Energy Corp. natural gas drill site in Bradford County, Pennsylvania, U.S. Chesapeake has lost a quarter of its market value since the end of March as questions about McClendons finances compounded plunging natural-gas prices.

Workers labor on a Chesapeake Energy Corp. natural gas drill site in Bradford County, Pennsylvania, U.S. Chesapeake has lost a quarter of its market value since the end of March as questions about McClendons finances compounded plunging natural-gas prices. Photographer: Daniel Acker/Bloomberg

Chesapeake Energy Corp. (CHK) Chief Executive Officer Aubrey McClendon has been adding oil fields to his personal holdings faster than he can find cash to drill them. Hes steering the company down the same road.

Chesapeake, producer of more U.S. natural gas than any company except Exxon Mobil Corp. (XOM), outspent its cash flow in 19 of the past 21 years while amassing millions of acres of drilling leases from the Rocky Mountains to Appalachia.

As the company moved to close this years projected funding gap with $12 billion in planned asset sales, investor criticisms of McClendon over a potential conflict of interest are stoking concern about the stability of the company. Chesapeake shares are down 22 percent this month, heading for the worst monthly loss since 2008, the last time McClendons personal finances intruded on company business.

Chesapeake is walking a tightrope right now, Mark Hanson, an analyst at Morningstar Inc. (MORN) in Chicago, said in a telephone interview. McClendon has shown a predilection to outspend, sometimes recklessly.

Read more from the original source:
Chesapeake 25% Decline Seen Spurred by Personal Conflict