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Monday, May 14, 2012 4:45 PM UTC

Chesapeake CEO says he’d welcome Icahn as investor

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Topics: From the Wires,

NEW YORK (AP) — Chesapeake Energy CEO Aubrey McClendon said Monday he’d welcome activist investor Carl Icahn as a shareholder.

Icahn, who is reportedly buying a substantial stake in the beleaguered natural gas producer, has a reputation for investing in companies and aggressively calling for change. But McClendon hinted that no shakeup was afoot in a conference call Monday with investors.

McClendon noted that Icahn also invested in the company in 2010. Icahn didn’t return a call for comment.

Chesapeake shares rose 96 cents, more than 6 percent, to $15.77 in midday trading. They’re still down 38 percent since late March, however, including a $13.8 percent drop on Friday.

Some analysts have called for McClendon to step down since news reports revealed a string of corporate governance issues at the country’s No. 2 natural gas producer. Besides running up Chesapeake’s debt, McClendon ran his own hedge fund while CEO and took out a personal loan from a company that was planning to buy Chesapeake assets.

McClendon sought to reassure investors Monday. He said that riding the boom in North American shale gas boom has been “exceedingly hard work.” Better days are ahead, he said, as Chesapeake switches from buying to selling oil and gas resources.

“What lies ahead is actually far easier to manage, and it will be far easier to invest in as well,” McClendon said.

A sharp drop in the price of natural gas, which hit a 10-year low in April, has contributed to this year’s drop in Chesapeake shares.

More Chris Kahn.

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