Energy Stocks: Energy stocks down; Chesapeake turns lower

SAN FRANCISCO (MarketWatch) � Energy stocks fell on Wednesday, with Chesapeake Energy Corp. declining after its board of directors said it completed a review of Chief Executive Aubrey McClendon�s financial dealings and found no wrongdoing.

Shares of Chesapeake CHK initially advanced on the news but ended the day off 0.6%.

The natural-gas producer�s board of directors said a review of McClendon�s personal business deals did not find �any improper benefit� to McClendon.

Dix & Eaton Chesapeake runs a rig in the Utica shale.

The transactions under review included deals involving EIG Global Energy Partners, trading activities of a hedge fund McClendon had co-founded, and a loan to McClendon by a board member.

McClendon, who faced stiff criticism about meshing personal and company transactions, agreed in January to retire on April 1. Chesapeake has said the decision to search for a new chief executive was not related to the review.

The company also said its board of directors concluded Chesapeake did not violate antitrust laws following the acquisition of Michigan oil and gas rights in 2010.

Chesapeake received notice of a Justice Department investigation in June and has been responding to it in addition to conducting its own investigation, the company said.

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The price of gold, which touched $1,750 an ounce in December, is now around $1,600 - and falling. MarketWatch�s Polya Lesova reports. Photo: AP.

Exxon Mobil Corp. XOM �shares also turned lower, off 0.4%, while competitor Chevron Corp. CVX �shares declined 0.8%. ConocoPhillips COP �shares lost 1.6%.

A Brazilian judge on Wednesday dropped criminal charges against Chevron Corp. and Transocean Ltd. �related to a November 2011 offshore oil spill, according to media reports.

Both companies halted activities at the Frade oil well until December. Chevron is still awaiting authorization from Brazilian regulators to resume operations.

The San Ramon, Calif., company has offered $149 million to settle two civil lawsuits stemming from the spill.

Brazilian authorities had also charged 17 Chevron and Transocean employees, and the civil case sought as much as $20 billion in damages.

Shares of Transocean Ltd. RIG �declined 3.5%. A federal judge in New Orleans late Tuesday approved Transocean�s $1 billion settlement with the Justice Department for the company�s role in the 2010 Deepwater Horizon explosion and oil spill.

Another federal judge last week had approved a $400 million criminal settlement. The rig operator announced the settlements in early January. Transocean owned the Deepwater Horizon rig, which exploded in April 2010, killing 11 workers and triggering the worst offshore oil spill in the U.S.