This is somewhat embarrassing, considering how much I have blogged about Chesapeake Energy Corporation (CHK) in the past.  However, I decided to take my measly 9% profits and run.  The following is a list of reasons in order of importance:

1. Raising cash.  This is the biggest of all reasons for selling.  I think the market will get much worse before it gets better.
   
   
2. Leverage.  Chesapeake has a lot of leverage and that now makes me uncomfortable in this market environment.  All cash flow from operations is currently being used to fund acquisitions and the purchasing of fixed assets; although this is not necessarily a bad thing - considering their sales, earnings, and reserves growth - it has come at the expense of increased debt (now at $7 billion) and dilution of common shares.
   
   
3. Oil vs Natural Gas.  It seems to me like natural gas follows oil up, but drops harder when oil falls.  Therefore, since I have a lot of oil companies that are performing better than CHK, I should prefer those.
   
   
4. CEO compensation.  I was not really impressed after Greg pointed out to me that CEO Aubrey K. McClendon was awarded $9 million in free shares.  True he has not sold those shares, but I think those kinds of things are not fair to other shareholders.  Footnoted.org also made some valid points about the CEO's compensation.

I know some of those reasons contradict my past blogs about CHK.  And I apologize sincerely.  As an investor - managing large sums of real money - all I can do is try to make the best decisions with the information available at the time.  Every oil company I own I think will appreciate 50% to 200%, so why not favor the un-levered ones?