Chesapeake Energy Corporation (NYSE: CHK), headquartered in Oklahoma City, Oklahoma, "owns 1.1 trillion cubic feet equivalent (tcfe) of proved oil and gas reserves, one of the largest inventories of onshore U.S. natural gas" {Chesapeake Annual Report, 1998, p. 1}. Recently, Chesapeake finished the transformation from an aggressive exploration company focused on developing short-reserve life, to a lower-risk, longer reserve life natural gas producer.

             Chesapeake"s operations are focused on "developmental drilling and producing property acquisitions." These operations are "concentrated in three major areas: the Mid-continent, the onshore Gulf of Mexico and far northeastern British Columbia, Canada" [Chesapeake Annual Report, 1998, p. 1].

             Management Team.

             Aubrey K. McClendon is Chesapeake"s Chairman of the Board, Chief Executive Officer and Director. Tom L. Ward is the President, Chief Operating Officer and Director. "McClendon met cofounder Tom Ward in the 1980"s. Both were independent oil producers; they teamed up in 1983" [Morgenson, p. 2]. They each have more than 16 years of experience in the oil and natural gas industry. All other members of the management team have multiple years of experience in the industry.

             Competitive Environment.

             Chesapeake has concentrated on expanding its holdings in natural gas since the company"s incorporation in 1989. Chesapeake thinks that natural gas will be the fuel choice of the 21st century. The company has been highly competitive in both its exploration activities and efforts to increase its inventory of undeveloped leasehold land. This combination should enable Chesapeake to remain a competitive force in the energy producing industry.

             New technology in the oil and gas industry has made exploration and production more profitable. This is key for the survival of American businesses that compete with OPEC and other foreign cartels that have very low production costs.