An article on Bloomberg takes aim at famed wildcatter Aubrey McClendon, calling his move into the Marcellus Shale a “misadventure” that has left investors holding an empty bag. According to the article (excerpts below), McClendon’s strategy after leaving Chesapeake Energy was to get a bunch of money from investors (load up on debt) and then work off the debt over time as production ramps up. Problem is, the price of natural gas and oil collapsed after he loaded up on debt, and consequently there’s been very little production, and the money that comes from production is tiny. The debt hangs around Aubrey’s neck like a millstone. The question now is, has Aubrey finally hung himself with high debt? Can Ascent Resources–the one-time American Energy Partners subsidiary that broke away–survive the mountain of debt it carries long enough for prices to turn around?…
