According to Thompson, in the last year Chesapeake Energy's CEO Aubrey McClendon purchased 2.6 million shares of CHK, at a cost of $111 million. What does he know that you don't?

Following is a summary of the main points made by McClendon on "Fast Money".

Why have you purchased so many shares of your company?

“I like Chesapeake

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[CHK  Loading...      ()   ] and its prospects,” replies McClendon. “I think we trade at a significant discount to our value today. So anytime I can scrape some money together I go out and I buy the stock.”

What supports your optimism?

"Look at the company’s growth rate, replies McClendon. “Our production was up 31% year over year and our adjusted net income was up 32% and yet the company is trading at about 12 times annualized earnings off this quarter. I think it’s a great growth company with very powerful fundamentals that trades at a substantial discount to where many of its peers trade.”

Where should it trade?

“It’s not my business to say, but I think it’s got a double in it and that’s why I bought so much,” replies McClendon.

How much of your performance is tied to the price of the commodity itself?

“Not very much,” says McClendon. “It’s a bonus when the commodity cooperates and we’re really the most active hedger in the business so we take a lot of the commodity price risk out. Right now we think that nat gas prices will stay in the $8-$10 range.. and we’ll do quite well in that kind of flat price environment.”

*******************

And in earnings news Chesapeake reported a first-quarter net loss related to hedges on Thursday, compared with a year-ago profit, but its adjusted profit topped analysts' forecasts.

Chesapeake, based in Oklahoma City, Oklahoma, had a net loss available to shareholders of $143 million, or 29 cents per diluted share, compared with a profit of $232 million, or 50 cents per diluted share in the same period a year earlier.

You can see the interview in its entirety at the end of the Word on the Street video.

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Trader disclosure: On May 1, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (MSFT), (DIS), (INTC); Adami Owns (AGU), (NUE), (BTU), (C), (GS), (INTC), (MSFT); Najarian Owns (AAPL), (TSO), (XLF), (YHOO); Najarian Owns (C) Calls, (CHK) Calls, (MSFT) Calls, (WLT) Calls, (POT) Calls; Finerman Owns (CHK), (GS), (HD); Finerman's Firm Owns (MSFT), (NYX), (SUN), (TSO), (TYC), (TEL), (VLO), (CMVT); Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns (C) And (C) Leaps, Finerman Owns (C); Finerman's Firm Is Short Pounds

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