Capital World Investors Cuts Chesapeake Energy Stake to 2.2%

TL;DR

**Big investor Capital World Investors just dumped a chunk of their Chesapeake Energy shares!**

AI Summary

Capital World Investors, a major investment firm, filed an amendment (SC 13G/A) on February 9, 2024, disclosing their ownership in Chesapeake Energy Corp. As of December 29, 2023, they beneficially owned 3,311,875 shares of common stock, representing 2.2% of the company. This is a decrease from their previous reported ownership, indicating they have sold a significant portion of their stake, which could signal a change in their outlook on Chesapeake Energy's future performance.

Why It Matters

This filing shows a major institutional investor has reduced its position in Chesapeake Energy, which could be interpreted as a lack of confidence and might influence other investors' decisions.

Risk Assessment

Risk Level: medium — A significant reduction in ownership by a large institutional investor like Capital World Investors can signal potential concerns about the company's future prospects, increasing investment risk.

Analyst Insight

An investor might consider this a signal to research the reasons behind Capital World Investors' reduced stake and re-evaluate their own position in Chesapeake Energy, potentially reducing exposure or setting tighter stop-loss orders.

Key Numbers

• 3,311,875 — shares beneficially owned (This is the total number of Chesapeake Energy shares Capital World Investors owned as of December 29, 2023.)
• 2.2% — percentage of class owned (This represents the percentage of Chesapeake Energy's common stock owned by Capital World Investors.)
• 165167735 — CUSIP Number (This identifies the specific class of securities (Chesapeake Energy Common Stock).)

Key Players & Entities

• Capital World Investors (company) — the reporting person who filed the SC 13G/A
• Chesapeake Energy Corp. (company) — the subject company whose shares are being reported
• Delaware (company) — state of incorporation for Capital World Investors
• December 29, 2023 (date) — date of event requiring the filing
• February 9, 2024 (date) — date the SC 13G/A was filed

Forward-Looking Statements

• Chesapeake Energy's stock price may experience short-term volatility due to the perceived lack of institutional confidence. (Chesapeake Energy Corp.) — medium confidence, target: 3 months
• Other institutional investors might re-evaluate their positions in Chesapeake Energy following this disclosure. (institutional investors) — medium confidence, target: 6 months

FAQ

Filing Documents

• SEC13G_Filing.htm (SC 13G/A) — 16KB
• 0001422848-24-000265.txt ( ) — 18KB

From the Filing

SC 13G/A 1 SEC13G_Filing.htm SEC SCHEDULE 13G UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13G Under the Securities Exchange Act of 1934 (Amendment No. 2 ) * Chesapeake Energy Corp. (Name of Issuer) Common Stock (Title of Class of Securities) 165167735 (CUSIP Number) December 29, 2023 (Date of Event Which Requires Filing of this Statement) Check the appropriate box to designate the rule pursuant to which this Schedule is filed: [X] Rule 13d-1(b) [ ] Rule 13d-1(c) [ ] Rule 13d-1(d) * The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 (the "Act") or otherwise subject to the liabilities of that section of the Act, but shall be subject to all other provisions of the Act (however, see the Notes.) CUSIP No. 165167735 1. NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) Capital World Investors 95-1411037 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] (b) [ ] 3. SEC USE ONLY 4. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH 5. SOLE VOTING POWER 3,311,875 6. SHARED VOTING POWER 0 7. SOLE DISPOSITIVE POWER 3,311,875 8. SHARED DISPOSITIVE POWER 0 9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 3,311,875 Beneficial ownership disclaimed pursuant to Rule 13d-4 10. CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [ ] 11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 2.5% 12. TYPE OF REPORTING PERSON IA Item 1. (a) Name of Issuer Chesapeake Energy Corp. (b) Address of Issuer's Principal Executive Offices 6100 North Western Avenue, Oklahoma City, OK 73118 Item 2. (a) Name of Person Filing Capital World Investors (b) Address of Principal Business Office or, if None, Residence 333 SOUTH HOPE STREET, 55TH FLOOR, LOS ANGELES, CALIFORNIA 90071 (c) Citizenship N/A (d) Title of Class of Securities Common Stock (e) CUSIP Number 165167735 Item 3. If This Statement is Filed Pursuant to Rule 13d-1(b), or 13d-2(b) or (c), Check Whether the Person Filing is a: (a) [ ] Broker or dealer registered under Section 15 of the Act (15 U.S.C. 78o). (b) [ ] Bank as defined in Section 3(a)(6) of the Act (15 U.S.C. 78c). (c) [ ] Insurance Company as defined in Section 3(a)(19) of the Act (15 U.S.C. 78c). (d) [ ] Investment Company registered under Section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8). (e) [X] An investment adviser in accordance with Rule 240.13d-1(b)(1)(ii)(E); (f) [ ] An employee benefit plan or endowment fund in accordance with Rule 240.13d-1(b)(1)(ii)(F); (g) [ ] A parent holding company or control person in accordance with Rule 240.13d-1(b)(1)(ii)(G); (h) [ ] A savings association as defined in Section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813); (i) [ ] A church plan that is excluded from the definition of an investment company under Section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a-3); (j) [ ] Group, in accordance with Rule 240.13d-1(b)(1)(ii)(J). Item 4. Provide the following information regarding the aggregate number and percentage of the class of securities of the issuer identified in Item 1. (a) Amount Beneficially Owned: 3,311,875 ** (b) Percent of Class: 2.5% (c) Number of shares as to which such person has: (i) sole power to vote or to direct the vote 3,311,875 (ii) shared power to vote or to direct the vote 0 (iii) sole power to dispose or to direct the disposition of 3,311,875 (iv) shared power to dispose or to direct the disposition of 0 **Capital World Investors ("CWI") is a division of Capital Research and Management Company ("CRMC"), as well as its investment management subsidiaries and affiliates Capital Bank and Trust Company, Capital International, Inc., Capital International Limited, Capital International Sarl, Capital International K.K., Capital Group Private Client Services, Inc., and Capital Group Investment Management Private Limited (together with CRMC, the "investment management entities"). CWI's divisions of each of the investment management entities collectively provide investment management services under the name "Capital World Investors." CWI is deemed to be the beneficial owner of 3,311,875 shares or 2.5% of the 131,072,227 shares believed to be outstanding. Item 5. If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five

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