Chesapeake Energy

It was pretty easy to predict (and MDN predicted it), that a very youthful Aubrey McClendon would not just sit on his hands and lick his wounds after being unceremoniously tossed aside by corporate raider Carl Icahn and other Chessy investors. MDN said this on April 1:

Why is it an error to show McClendon to the door even in light of his aggressive financial deals? You think McClendon will take his piles of money and sit on a Caribbean beach somewhere? In your dreams! He’ll be back, and he’ll start (or buy) another company that will directly compete with Chesapeake. You can bank on it. (McClendon Exits Chesapeake, Well-Bonused “Friends” Replace Him)

And what’s this? Just two weeks after exiting stage left, Aubrey has registered three new company names, set up an office, and hung out his shingle. Stetson hats off to the man:

Read More “Chesapeake 2.0? Aubrey McClendon is Back – in the Energy Business”

Thanks to intrepid MDN contributor Chris Acker for sending along a link for the latest PowerPoint slide deck published by Chesapeake Energy (see it below). Jammed with useful information, we particularly like map on Slide 13 showing the location of natural gas processing plants in the Utica/Marcellus (with Chesapeake’s leasehold acreage colored in); the map on Slide 14 showing new pipeline "take away" capacity coming online soon; and Slides 27 & 28 showing, respectively, a Utica Shale and Marcellus Shale summary for Chesapeake’s holdings in each of those plays (how many rigs they operate, etc.).

There’s some really great stuff in this slide deck. Check it out…

Read More “Chesapeake Investor Presentation – Interesting Slides/Maps”

A recent article in the Cleveland Plain Dealer about Chesapeake Energy is striking—even jarring—to MDN. Nominally it’s an article about the high tech lab and practices used at Chesapeake headquarters in Oklahoma City to evaluate core samples to determine the best (and most cost-effective) places to drill for oil and gas. Yes, the Center and the technology used is quite impressive. The jarring part is how the article opens (read below). It seems Chessy is now out of the penalty box since the departure of its "bad boy" founder Aubrey McClendon (see McClendon Exits Chesapeake, Well-Bonused “Friends” Replace Him).

With corporate raider Carl Icahn and his ilk firmly in control, it’s time to put some spit-n-polish back on old Chessy and bump up the stock price that had been battered to serious lows from coordinated negative media attacks. Now it’s stock rehab time in the mainstream press…

Read More “Chesapeake’s Total Image Makeover – Magical Media Transformation”

The U.S. Dept. of Interior (DOI) has accused Chesapeake Energy of underpaying oil and gas royalties due to DOI for drilling on federal lands and has slapped Chessy with a $765,000 fine. Chessy says there has been no intentional shorting of royalty payments and if you add up the total amount in question, it’s less than $500–little more than a rounding error on the purchase of paperclips for DOI.

DOI says Chessy has a history of “inaccurate reporting” when it comes to royalty reporting:
Read More “DOI Slaps Chesapeake with $765K Fine for Underpaying Royalties”

As of today, Monday, April 1, 2013, Chesapeake Energy has made the biggest error in its 24-year existence. Today marks the exit of Chesapeake’s co-founder and CEO, Aubrey McClendon. In his place, the company announced Friday they have created an “Office of the Chairman” which will be populated with three people: Archie Dunham, non-executive chairman of the board; Steven Dixon, who is currently COO and will take on the role of acting CEO to replace Aubrey (for now); and Dom Dell’Osso, CFO. Apparently it takes three people to replace Aubrey–that should tell you something right there.

The colossal error is in letting McClendon go in the first place, which is being done largely because of pressure from corporate raider Carl Icahn (see Breaking: Chesapeake Energy CEO Aubrey McClendon Gets Pink Slip). You might think that Steve Dixon and Dom Dell’Osso would leave with their old friend and comrade–but they’re two of three people bribed paid a whopping $15.4 million bonus to stick around (see Chesapeake Pays $15.4M to Prevent Exodus of Top Talent). After being showered with millions, Steve and Dom said, “Aubrey who?”…
Read More “McClendon Exits Chesapeake, Well-Bonused “Friends” Replace Him”

A changing of the guard continues at Chesapeake Energy. Today the company announced one of its board members, V. Burns Hargis, is stepping down and will be replaced by Louis A. Raspino. Hargis headed up the internal audit committee that looked into whether or not CEO Aubrey McClendon’s personal financial deals had compromised the company. Hargis and the audit committee concluded nothing improper was done. The Securities & Exchange Commission, however, has transitioned from “a probe” into McClendon’s dealings into “an investigation.”

We suspect Chesapeake’s second largest outside investor, Carl Icahn (a corporate raider looking to flip his investment in the company into big money), also had something to do with Hargis’ departure. Icahn voted against Hargis at the last board election in June 2012. Hargis tendered his resignation immediately following the vote but the board refused it at that time. This time they accepted it.

Read More “Chesapeake Board Member Resigns 2nd Time, Now Accepted”