Chesapeake Energy

Chesapeake Energy | Energy Companies | Industrywide Issues | NG Vehicles

Chesapeake Axes CNG Vehicle Program Too :-(
September 20, 2013September 20, 2013

It seems that Chesapeake CEO Doug Lawler’s ax-wielding will affect more than just the company’s bottom line–it may affect all of us. The brisk pace of layoffs at the company continues (see God, Veggies & Bees – What’s Next on the Chesapeake Chopping Block?). Sadly, one of the programs deeply affected by these reductions is the division set up to grow usage of compressed natural gas (CNG) vehicles by average consumers.

Chesapeake has been one of the leaders in producing technology to make it possible for consumers to “fill ‘er up” with CNG. However, the company’s CNG division has now also come under the budget ax, which means retail CNG efforts in this country will, at least for a time, be “substantially diminished”…
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Chesapeake Energy | Commodity Price | Coterra Energy (Cabot O&G) | Energy Companies | EQT Corp | Industrywide Issues | Range Resources Corp

Production from 4 Marcellus Drillers Keeps U.S. NatGas Prices Low
September 19, 2013September 19, 2013

An article on the investor website The Motley Fool does a good job of putting into context the enormous importance of the Marcellus Shale. According to the article, even though production from other major U.S. shale plays like the Haynesville has fallen in recent years, Marcellus production is up so dramatically it single-handedly keeps the price of natural gas low in this country.

The article (read it below) also gives a quick roundup of four key drillers driving the success of the Marcellus…
Read More “Production from 4 Marcellus Drillers Keeps U.S. NatGas Prices Low”
Chesapeake Energy | Energy Companies

God, Veggies & Bees – What’s Next on the Chesapeake Chopping Block?
September 16, 2013September 16, 2013

As MDN pointed out last week, Chesapeake Energy CEO Doug Lawler continues to cut expenses by cutting people (see Chesapeake’s Lawler Continues to Swing the Ax – More VPs Gone). Such activity puts a smile on his boss’ face, corporate raider Carl Icahn, because Icahn can see his stock price inching up–getting high enough that he can sell it at a profit. That’s what corporate raiders do.

An update on Chessy’s ax-wielding. The latest things to go on the chopping block? God, veggies and bees…
Read More “God, Veggies & Bees – What’s Next on the Chesapeake Chopping Block?”
Chesapeake Energy | Energy Companies | Industrywide Issues | Jobs

Chesapeake’s Lawler Continues to Swing the Ax – More VPs Gone
September 12, 2013September 12, 2013

Chesapeake Energy CEO Doug Lawler, no doubt spurred on by his boss, board member and corporate raider Carl Icahn, continues to swing the ax at Chesapeake. Although Chessy won’t reveal how many jobs have been cut, another round of ax-chopping happened earlier this week at the company with “numerous high level employees – vice presidents” getting notified they’re on the chopping block.

The latest from Oklahoma City’s News 9:
Read More “Chesapeake’s Lawler Continues to Swing the Ax – More VPs Gone”
Broome County | Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | New York | Tioga County (NY)

Done Deal: Chesapeake Drops Leases on 13K Acres in NY
September 10, 2013September 10, 2013

Last week MDN told you that Chesapeake was set to release 12,000 acres of leases in the Southern Tier of New York, abandoning a legal fight to extend those leases (some of which they paid $2-3 per acre for) by using a legal concept called force majeure (see Chesapeake to Release 12K Acres of NY Leases Next Week). Major media outlets from AP to Reuters are reporting Chesapeake, as of Monday, has officially dropped those leases.

One slight update: it was actually 13,000 acres, not 12,000 acres as originally reported…
Read More “Done Deal: Chesapeake Drops Leases on 13K Acres in NY”
Chesapeake Energy | Columbiana County | Energy Companies | Lease & Royalty Payments | Ohio | Utica Shale

Is Chesapeake Robbing Graves in OH Village…or Getting Robbed?
September 6, 2013September 6, 2013

We can see the headlines now: Chesapeake Energy is a (Gas) Grave Robber! Wait until the anti-drillers get hold of this story… Chesapeake has struck a deal with the Village of Salineville (Columbiana County), OH to lease and drill under 17 acres at the Woodland Cemetery. The deal stipulates no surface disturbance of any kind (a very good idea).

But who is robbing whom? Listen to the deal the village got: Chesapeake is paying Salineville $44,145 annually for five years, plus 15% royalties. The annual payments add up to $220,725, or if you think of it as a signing bonus stretched over 5 years, it’s $12,984 per acre. Wow!! That’s perhaps the highest per acre signing bonus we’ve heard of in the entire Marcellus or Utica Shale. Kudos to the Salineville board members who ~~suckered~~ negotiated the deal with Chesapeake…
Read More “Is Chesapeake Robbing Graves in OH Village…or Getting Robbed?”
Broome County | Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | New York | Tioga County (NY)

Chesapeake to Release 12K Acres of NY Leases Next Week
September 5, 2013September 5, 2013

About a month ago, MDN told you that Chesapeake has decided to end their fight with New York landowners over extending their leases (see Chesapeake Energy Throws in the Towel on NY Shale Drilling). Although it’s taken the past month to iron out the paperwork, it seems that Chesapeake (and NY landowners) will finalize and sign an agreement “sometime next week” to release 12,000 acres of leases in Broome and Tioga counties.

Chesapeake walking away from these leases is bittersweet. Sweet because it releases landowners from old leases signed before fracking was even contemplated, allowing them to re-sign a new lease with better terms. Bitter because it indicates Chesapeake is unwilling to put up with Gov. Andrew “Ditherer” Cuomo any longer as he agonizes over whether he will or whether he won’t allow fracking…
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Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

Chesapeake Settles PA Royalty Lawsuit for Pittance: $7.5M
September 3, 2013September 3, 2013

In July, MDN told you about a class action lawsuit by some Pennsylvania landowners against Chesapeake Energy over the issue of deducting certain costs from post-production when calculating royalties–costs that the landowners say are not listed in the original lease and for which Chessy does not have the right to deduct (see Some PA Landowners Mull Decision to Sue Chesapeake over Royalties). A number of landowners joined the class action lawsuit. The lawyers worked feverishly and both sides have now settled.

Chesapeake will pay $7.5 million to settle the lawsuit, to be share with the lawyers (of course) and then amongst the landowners. Apparently the settlement will benefit “several thousand leaseholders” who have the option to either accept the settlement or continue on their own by filing their own lawsuit…
Read More “Chesapeake Settles PA Royalty Lawsuit for Pittance: $7.5M”
Allegheny County | Chesapeake Energy | CNX Resources | Energy Companies | Pennsylvania | Statewide PA

Marcellus Shale Coalition Gets New Chairman of the Board
August 29, 2013August 29, 2013

It appears that Chesapeake CEO Doug Lawler’s massive firings throughout the company (no doubt demanded by corporate raider and Chessy board member Carl Ichan) have not only affected Chesapeake itself, but also the Marcellus Shale Coalition (MSC)–the premier group representing the drilling industry in Pennsylvania and the entire Marcellus region.

The chairman of the board of directors at the MSC had been David Spigelmyer, VP of government relations for Chesapeake. Spigelmyer is now gone from Chesapeake and gone from the board of the MSC. In his place, the board has appointed the current vice chairman, Randy Albert, COO of CNX Gas, to be chairman until Spigelmyer’s term was due to end in November…
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Anadarko | Blue Ridge Mtn Res/Magnum Hunter | Chesapeake Energy | CONSOL Energy | Energy Companies | EV Energy Partners | Gulfport Energy | Halcon Resources | Hess | Ohio | PDC Energy | Rex Energy | Statewide OH | Utica Shale

Who’s Who in OH Utica Shale Drilling for 2013
August 27, 2013August 27, 2013

Investor’s website Market Realist ran a 7-part series on the Utica Shale yesterday–really good stuff. As part of that series they list the biggest drillers/leaseholders in the Ohio Utica Shale. It’s a very useful rundown and update on the latest positions held by the major players of the Utica. We’ve pulled and condensed from their article to give you the latest rundown on who’s who in the Ohio Utica Shale…
Read More “Who’s Who in OH Utica Shale Drilling for 2013”
Braxton County | Chesapeake Energy | Earthquakes | Energy Companies | Industrywide Issues | West Virginia

New Case of Earthquakes Related to an Injection Well in WV?
August 27, 2013August 27, 2013

One of the gross inaccuracies MDN has tried to address over the past several years is the claim that “fracking causes earthquakes.” It does not. At least not measurable earthquakes people can feel at the surface. No less a source than the National Academies of Science released a study last year to “finally” put that particular myth to rest (see NRC Study: Fracking Does Not Cause Earthquakes). Unfortunately the earthquake myth is just too good a PR opportunity to pass up, so anti-drillers haul it back out about every three months for a new round of exposure.

The earthquake issue is confusing for many people because there is a loose connection between earthquakes and fracking: injection wells. Although most fracking wastewater is now recycled to be used again for more drilling, some of it is disposed of via deep injection wells. If an injection well happens to be located near a geologic fault, the pressure from the injected fluid has the potential to trigger an earthquake. It happened in Youngstown, OH in late 2011/early 2012 (see ODNR Finds Youngstown Injection Well Caused Earthquakes). According to a recent report from WV Public Broadcasting, it may now be happening again near a Chesapeake-owned injection well in Braxton County, WV…
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Chesapeake Energy | Energy Companies

Corporate Raider Carl Ichan Ups Stake in Chesapeake – Again
August 21, 2013August 20, 2013

Corporate raider Carl Icahn–a man who buys up stock in companies so he can lay people off and resell his stock at a profit–has increased his stake in Chesapeake Energy by a full percentage point–to 9.98%. Man we’d hate to have him lurking on our board. It’s likely no coincidence that Chesapeake has just laid off a number of its public relations staff in Ohio and Pennsylvania. Thanks Carl!…
Read More “Corporate Raider Carl Ichan Ups Stake in Chesapeake – Again”
American Energy Partners | Chesapeake Energy | Energy Companies | Ohio | Statewide OH

He’s Baaaack! Aubrey McClendon is Back in OH Shale Country
August 19, 2013August 19, 2013

After being unceremoniously tossed out of the door at Chesapeake Energy (the company he founded) by corporate raider Carl Icahn, Aubrey McClendon is, according to the Columbus Dispatch and Upstream magazine, back and active in the Utica Shale with his new company American Energy Partners.

There are four VERY interesting, juicy tidbits in the story about Aubrey’s return to the Utica…
Read More “He’s Baaaack! Aubrey McClendon is Back in OH Shale Country”
Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Pennsylvania | Statewide PA

Chesapeake Short-Changes PA Landowner on Royalty Checks
August 14, 2013August 14, 2013

MDN has brought you a couple of stories in recent weeks about landowners suing Chesapeake Energy over royalty checks, claiming Chesapeake is playing fast and loose with post-production expenses (see Bradford County, PA Landowners Sue Chesapeake over Royalties). A new Chesapeake royalty story (below) appears on the ProPublica website. It opens with a poignant tale of yet another landowner who was apparently screwed by Chesapeake with respect to royalties. It’s maddening.

However, we have to put the story in proper perspective. ProPublica is anti-drilling through and through. They have an agenda and that agenda is to make all drillers and anyone/anything connected to fossil fuels look bad, so as you read the story below, keep that in mind. Still, if even 10% of what is reported below is true, it’s disturbing. More than ever, it’s vital that landowners have a detailed, well-spelled-out lease that’s been reviewed and tweaked by a lawyer who knows oil and gas contracts inside and out. It’s also important to monitor every royalty statement…
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Chesapeake Energy | Energy Companies

Chesapeake Energy: What Goes Around Comes Around
August 13, 2013August 13, 2013

MDN has chronicled the messy firing of Chesapeake Energy’s founder and “controversial” leader Aubrey McClendon. We also told you about three of his long-time “friends” who were paid $15.4 million to stick around after corporate raider Carl Icahn got his way and had Aubrey fired (see Chesapeake Pays $15.4M to Prevent Exodus of Top Talent). Two of the three well-bonused “friends” have now received their own pink slips from Chesapeake. Steve Dixon, who was COO and acting CEO after Aubrey left, and Martha Burger, head of HR at the company, have been sent packing by Chesapeake’s new CEO Doug Lawler. No word on whether they get the full payout bonus which was due to be granted over the span of three years–in 2016, 2017 and 2018.

One Aubrey “friend” remains at Chesapeake: CFO Dom Dell’Osso…
Read More “Chesapeake Energy: What Goes Around Comes Around”
Bradford County | Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania

Bradford County, PA Landowners Sue Chesapeake over Royalties
August 13, 2013August 13, 2013

About a month ago, MDN told you that a couple of Scranton-area lawyers were looking for landowners with Chesapeake Energy leases who believe they’re getting the short end of the royalty stick, to participate in a class action lawsuit against Chessy (see Some PA Landowners Mull Decision to Sue Chesapeake over Royalties). At issue is how royalties are calculated–what is considered to be a post-production cost. Some landowners say Chessy is claiming too many expenses and in the process shorting payments to them.

Some landowners in Bradford County, PA have decided to join the lawsuit:
Read More “Bradford County, PA Landowners Sue Chesapeake over Royalties”