Chesapeake Energy has just blown the minds (and confidence) of investors by plunking down $4 billion in cash and stock to buy WildHorse Resource Development Corp, a driller with big-time assets in the oily Eagle Ford Shale play in Texas. Investors didn’t like the news, punishing the stock by sending it 12% lower. Chesapeake Energy today is definitely not the same company it was even five years ago. Chessy was co-founded by the flamboyant Aubrey McClendon (God rest his soul). Aubrey, a landman by profession, founded the company as a natural gas driller–building it into the largest onshore natural gas-drilling company in the U.S. Today Chessy’s focus on gas is pretty much gone. While they still drill and maintain wells in both the Marcellus (in PA) and Haynesville (in Louisiana), most of the talk in Chessy’s 3Q18 update, which was issued yesterday, was oil, oil, oil.
Chesapeake Energy has just blown the minds (and confidence) of investors by plunking down $4 billion in cash and stock to buy WildHorse Resource Development Corp, a driller with big-time assets in the oily Eagle Ford Shale play in Texas. Investors didn’t like the news, punishing the stock by sending it 12% lower. Chesapeake Energy today is definitely not the same company it was even five years ago. Chessy was co-founded by the flamboyant Aubrey McClendon (God rest his soul). Aubrey, a landman by profession, founded the company as a natural gas driller–building it into the largest onshore natural gas-drilling company in the U.S. Today Chessy’s focus on gas is pretty much gone. While they still drill and maintain wells in both the Marcellus (in PA) and Haynesville (in Louisiana), most of the talk in Chessy’s 3Q18 update, which was issued yesterday, was oil, oil, oil.