CHESAPEAKE Energy Corp. was one of the leading Energy stock decliners Tuesday as the firm reported corporate-governance changes and spending cuts.
Chesapeake’s (CHK -4.21 pct) shares, the second biggest natural gas producer after Exxon Mobil Corp. (XOM +0.64 pct), fell 4.1 percent with losses at the end of trading.
The company announced it would give some shareholders the right to pick some directors late Monday, minimize political and charity spending, and cut overhead costs.
Aubrey McClendon, CEO, will receive no bonus for 2012, on his own recommendation, and many of the top executive’s perks were cut, including limiting personal use of company plane, the company bared in a SEC filing.
Chesapeake has sold many properties during the past few months to try to enhance the company’s balance sheet after a liquidity setback in 2012 with its CEO’s financial dealings which were under scrutiny.
CHK has been the subject of criticisms for its spending habits and executive compensations. Its shares have fallen almost 30 percent in the past year.
OTHER TOP LOSERS
Meanwhile, EQT Corp. (EQT -2.97 pct) and WPX Energy Inc. (WPX -4.90 pct) were also among the top losers, falling 3 percent and 4.8 percent, respectively.
Chevron Corp’s (CVX -0.44 pct) shares fell 0.4 percent, while shares of ConocoPhillips (COP -1.34 pct) slipped 1.3 percent. Shares of Big Oil were mixed.
Bigger competitor Exxon (XOM +0.62 pct) turned higher, finishing the day higher by 0.5 percent.
QEP Resources Inc’s. (QEP -0.33 pct) shares dipped 0.2 percent.
QEP’s Board approved the establishment of a limited partnership to spin off majority of the company’s gathering assets in North Dakota and Wyoming.
The crude-oil and natural gas producer reported that it expects to file for an IPO of the master limited partnership in Q2, and would produce $300 million to $400 million from selling a minority stake in the deal.
Royal Dutch Shell Plc.’s (RDS.A -.021 pct) United States-listed shares fell 0.1 percent. The grounded Kulluk rig of Shell has been pulled into Kiliuda Bay in Kodiak Island. Shell said the rig will undergo major assessments.