Learn More About Chesapeake CEO Aubrey McClendon

By -
The Wall Street Journal has a new article that takes a look at Aubrey McClendon, CEO of Chesapeake Energy.  It's an interesting peek into the mindset of one of the biggest figures of the oil and gas industry.

Here is an excerpt:

CEOs can be a cautious breed. Why make yourself a target? Then there's Aubrey McClendon, the CEO of Chesapeake Energy, a driving force behind America's natural gas revolution, a bumptious voice in energy and environmental politics, scourge of the coal industry turned scourge of his former green allies, and lately the target of corporate-governance scrutiny for loans he took from a firm that was also negotiating to buy assets from Chesapeake.
All of which made for a spirited 90 minutes when the lanky, lion-maned executive stopped by the Journal just as the news of his personal loans was breaking. He had used the money to fund his participation in an unusual compensation program that allowed him to personally invest alongside the company in each well that it drilled.
Mr. McClendon did not specifically address the loans from EIG Energy Partners. But he was certainly making no apologies for the long-standing program—approved by shareholders in 2005—allowing him to personally invest in wells. He says the arrangement had been favored by Chesapeake's board since 1993 because directors wanted him to "eat his own cooking." If he had to put his own money on the line, he'd take great care in selecting the most promising drilling projects.
"American business would be run better today if there was more alignment between CEOs' interest and the company," says the 52-year-old Oklahoman. "For example, would the financial crisis of 2008 have occurred if the CEO of Lehman and Morgan Stanley and Goldman and Citibank had to take a very small percentage of every mortgage-backed security . . . or every loan they made?"
Well, so much for that defense. This week the Chesapeake board, after days of media pounding and new regulatory scrutiny, announced that it will terminate the program. The board also said that it "is reviewing the financing arrangements between Mr. McClendon . . . and any third party that has had or may have a relationship with the company in any capacity." Asked for additional comment Friday, a spokesman for Mr. McClendon responded that the board statement "says everything we intend to say at this point."

Read the entire article here.

Visit our Forum!

Connect with us on Facebook and Twitter!

Popular posts from this blog

Fracktivist in Dimock Releases Carefully Edited Video, Refuses to Release the Rest

By -
Image
From Energy in Depth: There is something very strange going on along Carter Road, in Dimock, Pennsylvania, and I’m not speaking of natural gas, methane migration, contamination, litigation or even the extensive water testing there by the EPA and others.  No, I’m talking about a new “Watergate” conspiracy, complete with 18 minutes of missing tape (well, video, actually). It seems the ever-present Green Party member and  naturist   Vera Scroggins  (a/k/a  Vera Duerga ) has posted a video of Craig Sautner meeting with the EPA.  Mysteriously, the video is but 14 seconds in length, cutting off conversation in what is obviously mid-stream.  It raises a question Craig Sautner, like  Ronald Reagan in Kings Row , might have asked, “Where’s the rest of me?’  Carter Road, isn’t Kings Row, of course, (at least not until you arrive at  the mansion Scott Ely, one of the Dimock litigants, is building with his royalty money ), but there appears to be...
Read more

The Second Largest Oil and Gas Merger - Cabot and Cimarex

By -
Image
       Due to investor pressure, the U.S shale drillers are being pushed to improve financial and operational performance after a few years of poor returns. Even though the industry has improved its numbers, when compared to last year, investors still want more to be done for them to earn more money.      That's why two mid-tier shale drillers, Cabot and Climarex, have decided to merge in order to eliminate $100 million in annual costs, which means more money for the investors. This all-stock transaction is valued at about $7.4 billion, which is relatively high for the oil and gas sector.      The new entity will be renamed and the headquarters located in Houston, Texas. Cabot shareholders will own 49.5 percent of the new entity, and Climarex the rest.       The Cimarex-Cabot merger will address the investor's demand for a higher amount of returning cash. The initial plan is to pay a 50-cent-per-share special dividen...
Read more

Do You Know The History of Fracking?

By -
Image
  In 2018, 59% of total oil production in the U.S came from hydraulic fracking, which means it accounted for more than two-thirds of domestically manufactured gas. By 2024, fracking will reach an astounding $68 billion market value! Of course, fracking is not a new drilling method as you can trace it back hundreds of years. That's why we want to consider the history of hydraulic fracturing (fracking). We will be stating historical facts about it and focusing on the major historical occurrences that have influenced modern-day fracking. Pre-Fracking Days The idea of fracking started back in 1862 when Edward A.L. Roberts (Civil War veteran) witnessed Confederate soldiers exploding artillery rounds into a canal that obstructed a battlefield. At the time, Edward A.L. Roberts called it superincumbent fluid tamping. On April 26th, 1865, Edward A.L. Roberts began experimenting with exploding torpedoes, which consisted of lowering a torpedo containing an amount of powder from fifteen to tw...
Read more