Chesapeake Energy 52 - Marcellus Drilling News

FT Names Potential Chesapeake Energy Buyers

May 18, 2012May 18, 2012

Chesapeake Energy stockholders have seen the stock slide 44 percent in the past six months. Chesapeake’s largest outside investor, Southeastern Asset Management, recently encouraged the board to sell the company (see this MDN story). But who would buy?

A wide-ranging article in yesterday’s Financial Times about Chesapeake tosses out the names of a few companies that would be the likely buyers if Chesapeake were sold.

Chesapeake’s Troubles Mean a Slowdown for Ohio

May 17, 2012May 17, 2012

Carroll County, Ohio is starting to feel the negative effects of Chesapeake Energy’s troubles, as noted in a story yesterday in the Cleveland Plain Dealer. Because of recent revelations of debt financing, private hedge funds and other practices by Chesapeake CEO Aubrey McClendon, and a resulting fall in Chesapeake’s stock price and credit rating, drilling industry activity in Carroll County has slowed down—a lot.

Chesapeake Energy | Energy Companies

Chespeake’s Credit Downgraded by S&P, Stock Hits 3-Year Low

May 16, 2012May 16, 2012

Chesapeake Energy’s credit rating was downgraded by Standard & Poor’s to BB-, which is defined as, “Less vulnerable in the near-term but faces major ongoing uncertainties to adverse business, financial and economic conditions.” The downgrade caused the stock to tumble to its lowest point since March 2009.

Chesapeake Energy | Energy Companies

Monday’s Chesapeake Investor Call: Two Big News Items

May 15, 2012May 15, 2012

Carl Icahn Chesapeake Energy CEO Aubrey McClendon held yet another investor conference call yesterday morning, this one to quell concerns over Chesapeake’s “emergency loan” of $3 billion from Goldman Sachs on Friday. Among the things to come out of the phone conference were two (really) big pieces of news, one of which will directly affect landowners in the Marcellus and Utica Shale, the other which will potentially affect all landowners with Chesapeake leases no matter where they live.

Chesapeake Energy | Energy Companies

Chesapeake Energy Gets $3 Billion Loan from Goldman Sachs

May 14, 2012May 14, 2012

In an attempt to boost investor confidence and boost the stock price, Chesapeake Energy received a $3 billion unsecured loan last Friday from Goldman Sachs. They also provided a quick update on efforts to sell off their assets in the Permian Basin and their Mississippi Lime joint venture, hoping to raise upward of $10 billion, part of which will be used to pay back the short-term Goldman loan.

From the Chesapeake press release:

Alternative Energy | Chesapeake Energy | Commodity Price | Energy Companies | Industrywide Issues

Boone Pickens Sells Chesapeake Stock, Strange Comment on NatGas

May 14, 2012May 14, 2012

Has T. Boone Pickens, Texas oil billionaire and author of “The Pickens Plan” that calls for America to use natural gas to reduce our dependency on OPEC oil and as a bridge to a renewable energy future, now turned his back on natural gas? His investment company, BP Capital Management, has sold off all of its Chesapeake Energy stock. Pickens’ comment on the reason for selling off Chesapeake was a tad strange:

Location for OH NGL Processing Plant Identified

May 14, 2012May 14, 2012

We now know the specific location of a previously announced $400 million shale gas collection and processing plant being built in Columbiana County, Ohio by a joint venture between Chesapeake Energy, M3 Midstream and EV Energy Partners.

O&G Countersues Landowners Claiming Lease Slander

May 14, 2012May 14, 2012

In late March, seven Beaver County, PA families (18 people) filed a lawsuit in Common Pleas Court accusing O&G Investments of Wooster, Ohio of not drilling on their land—and not paying them—for the past seven years. The leases were sold to Chesapeake Energy and at the eleventh hour, just before the leases were set to expire, Chesapeake attempted to initiate drilling to retain the leases, which prompted the lawsuit (see this MDN story for background). Late last week O&G countersued the families:

Chesapeake Energy | Columbiana County | Energy Companies | Ohio | Utica Shale

Columbiana County, OH Utica Shale Drilling Expands Again

May 10, 2012May 10, 2012

Columbiana County, OH received four new drilling permits last week from the Ohio Department of Natural Resources (ODNR). Three of the permits went to Chesapeake Energy. So far, Columbiana County has received permits to drill 32 horizontal wells in the Utica Shale.

Chesapeake Energy | Energy Companies

Chesapeake’s Largest Shareholder Says: Consider Selling

May 8, 2012May 7, 2012

for sale sign Yesterday, the largest outside shareholder of Chesapeake Energy stock (with 13.6 percent)—Southeastern Asset Management—sent a letter to CEO Aubrey McClendon and the board of directors with a loud and clear message: “We urge the board to be open to any offers to acquire the whole company.” Ouch. Not exactly a ringing endorsement. The letter also included some other “friendly” advice on how Chesapeake ought to be running its business (gotta love those investors, eh?).

Here’s the entire letter, as filed with the Securities and Exchange Commission:

MarkWest Inks Two New Deals to Expand Processing in WV

May 8, 2012May 7, 2012

MarkWest has been in the news a lot lately, signing a raft of new agreements and even buying out a competitor. Last Friday, MarkWest announced they had signed an agreement (terms not disclosed) to expand MarkWest’s processing capacity in the Marcellus Shale to handle more Chesapeake production. The areas covered by the agreement include northern West Virginia (Brooke, Ohio and Marshall counties), and Washington County in Pennsylvania.

Chesapeake Energy | Energy Companies

Many Analysts Say Chesapeake Energy Will Bounce Back

May 7, 2012May 7, 2012

Analysts are predicting that Chesapeake Energy and its stock price is poised for a bounce-back, if CEO Aubrey McClendon follows through on promises to sell certain company assets and reduce the company’s debt load. So says an article from Bloomberg BusinessWeek on Friday:

Chesapeake Energy | Energy Companies

SEC Launches Informal Investigation of Chesapeake & McClendon

May 4, 2012May 4, 2012

The sharks continue to circle around Chesapeake Energy. Yesterday, the company confirmed via a brief press announcement (below) that the Securities and Exchange Commission (SEC) has launched an informal investigation into the company and its founder/CEO Aubrey McClendan.

The Chesapeake announcement:

MarkWest Inks Major New Deals with Chesapeake & Antero

May 4, 2012May 4, 2012

MarkWest announced today two major new agreements to provide expanded natural gas processing and pipeline capacity for Chesapeake Energy and Antero Resouces in the Marcellus Shale. The deal with Chesapeake covers Brooke, Ohio and Marshall counties in WV, and Washington County, PA. The deal with Antero covers Doddridge and Harrison counties in WV. The new agreements, which include processing natural gas liquids, mean MarkWest will build new gathering pipelines and add compressor stations to their existing operations.

From the MarkWest press release:

Chesapeake Energy | Energy Companies

Another Shoe Drops for Chesapeake – Aubrey’s Hedge Fund

May 3, 2012May 3, 2012

shoes dropping Yesterday was not a good day for Chesapeake Energy and its CEO Aubrey McClendon. By the end of the day, Chesapeake’s stock had slide to its lowest since September 2009, down 15 percent at $16.72 (see chart below). Why the drop? A number of reasons, but mostly because of a new revelation, “the other shoe dropping.”

On an earnings call with stockholders and analysts yesterday, McClendon laid out a plan for reducing a pile of debt the company has racked up that now totals $12.6 billion. Investors remain nervous about the mounting debt. The company earlier this week reported a net loss of $71 million, or 11 cents per share, for the first three months of this year. Several weeks ago Reuters reported that McClendon had been running up his own debt tab in order to supply cash for drilling wells in which he is a 2.5 percent stakeholder in a deal with the company. The company’s stock took a beating on that news.

Brooke County | Chesapeake Energy | Energy Companies | Lease & Royalty Payments | West Virginia

Brooke County School District Signs Lease with Chesapeake

May 2, 2012May 2, 2012

The Brooke County, WV Board of Education on Monday approved a lease deal with Chesapeake Energy that will allow natural gas drilling beneath school-owned property. The deal allows Chesapeake to drill under any of the school’s collective 189 acres, which is scattered throughout the county at different locations. The signing bonus is $3,500 per acre for each acre drilled, plus 18 percent royalties.