Chesapeake Energy has been making headlines of recent past with numerous internal problems, and it seems to face a major change - a buyout from big oil giants such as Exxon Mobil and Chevron.
The reason for the acquisition is sinking devaluation as shares of Chesapeake Energy have taken a nosedive with no signs of turning around. A loss in market value since the beginning of 2012 has Chesapeake considering the wear and tear of low gas prices and the strain of internal executive changes.
All in all, the company's stock price is down 27 percent this year as investigations proceed on Chesapeake's CEO Aubrey McClendon and his personal loans which were allegedly supported by stakes in company-operated wells.
Despite Exxon Mobil's recent takeover of XTO Energy in 2010 which cost $31 billion, Exxon Mobil would make major additions to their natural gas and NGL liquids output by taking Chesapeake under their wing. Furthermore, Chevron also stands to make a significant benefit as well.
Chesapeake is an attractive gain for a big oil company considering it sits on some of the most desired onshore shale gas reserves and is the second largest producer of natural gas in the U.S. According to media reports, analysts expect major oil companies - such as Exxon Mobil and Chevron - will consider bidding for the company.
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by RTT Staff Writer
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