Chesapeake Energy Corp.
explained a potential cause of the recent major fall for the beleaguered stock late Tuesday, sending shares higher in late trading. In a news release, the company announced that NGP Energy Capital Management LLC, distributed its 310.8 million shares to investment fund partners managed by NGP before the market opened on Tuesday. According to FactSet, the 310.8 million shares are the largest share in the company at 15.9%, although it shows the owner with a slightly different name, Natural Gas Partners LLC. "Chesapeake continues to believe that our current capital and operating program, along with the planned 30% reduction in investment by 2020, will strengthen the company's financial position in the long term," CEO Doug Lawler said in Tuesday's announcement. Chesapeake shares fell to their lowest prices of more than 25 years on Tuesday, continuing a losing streak that has ruined the valuation. In late trading, Chesapeake shares gained 7.3% after the announcement.