The U.S. Department of Justice ended a three-year probe of Chesapeake Energy Corp.'s (NYSE: CHK) royalty payment and land purchase practices without taking action, the natural gas producer said in a securities filing on Nov. 2.
The department subpoenaed documents from the company in 2014 after dozens of landowners and others accused it of short-changing them on royalties for natural gas and other fuels.
Chesapeake said in the filing with the U.S. Securities and Exchange Commission that the Justice Department advised it on Sept. 19 that it had concluded the probes. The company remains in discussions with the U.S. Postal Service and various states, which separately sought information about the practices, the filing said.
A spokesman for the Oklahoma City-based company declined to comment further.
Chesapeake shares were off 6.6% at $3.70 in afternoon trading after the company said third-quarter revenue declined 14.6% and projected flat-to-modest production growth in 2018.
Last month, a U.S. District Court in Akron, Ohio, lent support to the company's royalty deductions on contracts in the state, dismissing a lawsuit by landowners and others saying Chesapeake should not have charged post-production costs against payments to them. The ruling halted a number of cases against Chesapeake but left others intact.
2023-09-22 - Oceaneering intends to use the net proceeds from the offering, together with cash on hand if necessary, to fund the purchase of any and all of its 4.650% senior notes due in 2024.
2023-09-21 - Arclight Capital Partners adds former Vistra Corp. CEO Curt Morgan as senior adviser.
2023-09-20 - LNG developer NextDecade Corp. has secured debt financing to support construction of the company’s Rio Grande LNG export project in South Texas.
2023-09-20 - Hess Midstream will repurchase $100 million worth of units from the company’s sponsors, Hess Corp. and Global Infrastructure Partners.
2023-09-20 - Permian Resources will not receive proceeds from the stock offering.