Ahead of Annual Meeting, Chesapeake CEO Aubrey McClendon Lawyers Up

Aubrey McClendon is out as CEO of Chesapeake Energy after turning a company he founded from scratch 30 years ago into the country's second-largest natural gas producer. What happened?  The short answer is the low natural gas prices destroyed the company's earnings.

Chesapeake Energy CEO Aubrey McClendon will retire effective April 1, according to a company release. Shares of CHK are surging in after-hours trading An internal review found McClendon did not engage in any improper conduct.

Chesapeake Energy Corp reported quarterly profit that exceeded Wall Street expectations on Wednesday, as the U.S. oil and gas company produced more crude oil from shale basins like the Eagle Ford in Texas and expenses fell. Chesapeake, under the direction of a board handpicked by its largest investors and interim Chief Executive Steve Dixon, is focused on drilling its best properties and increasing output of more profitable crude oil while lowering spending.

Aubrey McClendon will no longer be running Chesapeake Energy Corpcome April 1. But he is likely to remain deeply entangled with the company he founded 24 years ago.

By Trefis: Chesapeake Energy’s (CHK) beleaguered CEO, Aubrey McClendon, announced his resignation Tuesday, citing differences with the firm’s board of directors. McClendon has been under fire from investors following allegations that he used his position in the company to further his personal interests and is currently being investigated by the firm’s board as well as federal regulators.