History
Founded in 1989 by McClendon and former President and COO Tom L. Ward, the company began with 10 employees and a $50,000 initial investment. McClendon named the company due to his love of the Chesapeake Bay region. Focusing on a strategy of drilling horizontal natural gas wells in unconventional reservoirs, the company built a sizable position in the Golden Trend and Sholem Alechem fields of South-central Oklahoma and in the Giddings field of Southeast Texas.
In 1993, the company completed its IPO at a split-adjusted price of $1.33 per share. In 1995, Chesapeake moved from the NASDAQ to the NYSE and changed its stock symbol to CHK.
After struggling with attempts to extend the Austin Chalk play into western and central Louisiana and the coinciding price collapse of oil and natural gas in the late 1990s, the company modified its strategy to focus almost exclusively on natural gas production. This focus utilized the newest technologies to target a more diversified, longer reserve life and lower base risk asset base and began to incorporate acquisitions into the company’s business plan.
During the years 2003–2007, the company experienced rapid growth thanks to upward shifts in U.S. natural gas prices. During this time, the company expanded its land positions into unconventional reservoirs such as fractured carbonates, tight sandstone and shales, such as the Barnett, Fayetteville, and Marcellus shales. In 2006, Chesapeake was added to the S&P 500, replacing Dana Corporation.
In 2008, Chesapeake announced its discovery of the Haynesville Shale in East Texas and northwestern Louisiana. The Haynesville Shale is projected to become the nation’s largest natural gas producer by 2015 and along with the Marcellus Shale, perhaps one of the five largest natural gas fields in the world over time.
The company celebrated its 20th anniversary in 2009 by partnering with Orange County Choppers to create the world’s first compressed natural gas (CNG)-powered chopper.
On July 22, 2011, Chesapeake Energy agreed to a twelve-year naming rights partnership with the Oklahoma City Thunder to rename their arena Chesapeake Energy Arena. The agreement between Chesapeake and the Thunder has an initial annual cost of $3.0 million with a 3.0% annual escalation. Included in the agreement Chesapeake will have its branding throughout the building, prominent premium placement on the high-definition scoreboard and on new state-of-the-art interior and exterior digital signs.
In June 2012, the company appointed Archie W. Dunham as chairman, replacing Aubrey McClendon, who retained his position as CEO. Dunham, who retired as chairman of ConocoPhillips in 2004, was appointed in response to shareholder concerns about corporate governance issues under McClendon's watch.
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