Investing.com -- Shares in Chesapeake Energy Corporation (N:CHK) fell by more than 7% on Monday, after the Oklahoma City-based energy announced that Brad Martin will replace Archie Dunham as the chairman of the company's Board of Directors.
As part of the transition, Chesapeake Energy said Dunham will remain with the company as a director on the board and as its chairman emeritus.
"Chesapeake will benefit from Brad's unique insight and extensive business experience as he serves in his new role as Chairman of the Board," Dunham said in a statement. "Chesapeake has a bright future, given its exceptional portfolio, operations, and management team. With all the meaningful changes we have made at Chesapeake over the past three years, significant opportunities lie ahead."
Martin, the chairman of RBM Ventures and the retired chairman of Saks Incorporated, was appointed to Chesapeake's Board of Directors in June, 2012.Martin also serves on the Board of Directors of FedEx Corporation (N:FDX) and First Horizon National Corporation. In addition, Martin holds an undergraduate degree from the University of Memphis and an MBA from Vanderbilt University. Martin has also served as interim president of the University of Memphis.
"All of us at Chesapeake are grateful to Archie Dunham for his solid leadership in developing a strong foundation for Chesapeake during his tenure as Chairman," Martin said in a statement. "I am privileged to succeed Archie in this role and look forward to working closely with Doug Lawler, our CEO, the Board of Directors, and our dedicated employees to create significant value."
Chesapeake Energy is the second-largest producer of natural gas in the U.S. and the 12th largest producer of oil and natural gas liquids nationwide. In August, the company reported an adjusted net loss of 0.12 per share and adjusted EBITDA of $600 million for its second quarter.
Shares in Chesapeake Energy lost 0.65 or 7.32% during Monday's regular session. In after-hours trading, Chesapeake Energy inched down 0.01 or 0.12% to 8.22.