Chesapeake Energy Corp. (CHK) said the U.S. Internal Revenue Service is reviewing an executive- incentive program that allowed Chief Executive Officer Aubrey McClendon to buy stakes in thousands of the company’s oil and natural-gas wells.
The IRS is examining the so-called Founders’ Well Participation Program as part of its audits of Chesapeake’s 2008 and 2009 income-tax returns, the Oklahoma City-based company said today in a regulatory filing.
Chesapeake has been in talks with the IRS and said the resolution probably won’t have a material impact on the company.
Chesapeake last week announced plans to halt the well- participation program after news reports called into question the propriety of McClendon’s use of well stakes as collateral to obtain loans.
The IRS review of the well program wasn’t mentioned in the Feb. 29 filing that disclosed the agency’s review of the company’s 2007, 2008 and 2009 tax returns.
To contact the editor responsible for this story: Susan Warren at firstname.lastname@example.org