For the first time since 2008, Texas billionaire T. Boone Pickens holds no shares in embattled natural gas producer Chesapeake Energy (NYSE: CHK).
According to Bloomberg News, Pickens sold his remaining shares in Chesapeake on May 10, which numbered just under five hundred thousand. Another 71,000 shares in the energy company were sold in the first quarter.
Pickens has been a staunch supporter of Chesapeake CEO Aubrey McClendon, and offered support for him, even though it appears Pickens abandoned the stock because of possible conflicts of interest McClendon is being investigated for by U.S. Securities and Exchange Commission in regard to personal loans.
This is probably the case because Pickens picked up other natural gas stocks in the first quarter of the year, including Devon Energy (DVN) and Encana (ECA).
Chesapeake, the second-largest natural gas producer in America, has recently gone even further into debt by securing a bridge loan from Goldman Sachs (NYSE: GS) of $4 billion.
The company hopes the loan will strengthen its bargaining position as it attempts to sell off quality assets, which have been getting low ball offers because potential suitors know the weakened position Chesapeake is in.
Chesapeake was trading at $14.23, up $0.68, or 5.04 percent, as of 1:34 PM EDT.