Southeastern Asset Management Inc., the owner of one of every 10 shares in Chesapeake Energy Corp., is more bullish on the natural gas producer as Chief Executive Officer Doug Lawler trims costs.
The outlook for Oklahoma City-based Chesapeake has improved because Lawler “has made substantial progress since taking the helm” in June, Southeastern said in a letter to its shareholders today.
Lawler’s “capital discipline and operational effectiveness will reward shareholders,” the Memphis-based asset management firm led by O. Mason Hawkins said in the letter. Southeastern is the largest shareholder in Chesapeake, according to data compiled by Bloomberg.
Hawkins teamed with the company’s second-largest shareholder, billionaire activist investor Carl Icahn, last year to remove Chesapeake co-founder and shale-gas pioneer Aubrey McClendon. Lawler, a former Anadarko Petroleum Corp. executive, plans to cut spending 20 percent this year, bringing it down to less than half of 2012 levels as the company sells assets and spins off its oilfield-services division.
Chesapeake gained 1.3 percent to $27.84 at 10:44 a.m. in New York.
Since the 47-year-old Lawler’s appointment was announced, the stock has advanced 34 percent, outperforming the 12 percent rise in the Standard & Poor’s 500 Index and the 8.3 percent increase for Exxon Mobil Corp., the only company that produces more gas in the U.S. than Chesapeake.
To post a comment, log into your chosen social network and then add your comment below. Your comments are subject to our Terms of Service and the privacy policy and terms of service of your social network. If you do not want to comment with a social network, please consider writing a letter to the editor.