Chesapeake Headed to Arbitration

Court Orders Company to Settle Dispute with Former CEO
Chesapeake Energy to Arbitrate with Aubrey McClendon.

Chesapeake Energy Must Settle Dispute with Former CEO

A district court judge in Oklahoma has ordered Chesapeake Energy to enter arbitration in an attempt to settle its dispute with American Energy Partners.

In a lawsuit filed in February, Chesapeake accused its former CEO, Aubrey McClendon, of stealing important trade secrets before leaving the company in 2013 and then using the confidential information to build American Energy Partners. Read more: Chesapeake Sues American Energy Partners 

Attorneys for American Energy accused Chesapeake of using gimmicks to stay out of arbitration and Judge Thomas Prince agreed. Prince granted the request for arbitration, though it is unclear when it will begin.

American Energy states in a court filing that “Chesapeake cannot escape its contractual commitment to arbitrate through the procedural gimmick of leaving Mr. McClendon’s name off.”

Last week, Chesapeake Energy reported 2015 first quarter loss of$3.8 billion. In spite of huge losses, CEO Yet Doug Lawler remained upbeat and focused on Chesapeake’s innovations.

Chesapeake is active all across the Eagle Ford including Atascosa County, Dimmit County, Duval County, Frio County, Goliad County, LaSalle County, McMullen County, Washington County, Webb County and Zavala County.

Eagle Ford Billionaires List | Led by Harrison & Hildebrand

Harrison & Hildebrand Pocketed Billions In The Eagle Ford
Jeff Hildebrand - Hilcorp

Jeff Hildebrand – Hilcorp | Net worth $5.5 billion – $2.5 billion made in the Eagle Ford

The economic impact of the Eagle Ford Shale was more than $61 billion in 2012, but the play has also put billions in the hands of a few land owners and investors.’s Eagle Ford billionaires list is topped by the founder of Hilcorp Resources and a land owner who controlled a 100,000+ acre ranch. One sold acreage worth billions and one leased acreage for more than one billion dollars in lease bonus money.

Jeff Hildebrand and Dan Harrison are estimated to have made $2.5 billion and $1 billion, respectively, from direct holdings in the Eagle Ford. Other members of the list either manage or have ownership in companies active in the Eagle Ford.

[Read more…]

CHK Plans For New Leadership – McClendon Retiring

Chesapeake Eagle Ford Rig Map

Chesapeake Rig Map | Click to Enlarge

Chesapeake’s CEO, Aubrey McClendon, has announced plans to retire as of April 2013. McClendon founded Chesapeake in 1989 and, as a landman, was well suited to oversee the company’s shale land grab over the past decade.

Chesapeake has a market cap of more than $13 billion, with underlying assets that have significant growth potential.

Mr. McClendon was a fairly controversial figure in the investing world as he led the most aggressive leasing strategy ever implemented. The company has leased millions of acres and in turn flipped a portion of the assets to other companies. The deals funded the company’s shale leasing spree.

McClendon came under scrutiny multiple times throughout the past several years as his position magnified. The company’s “founder well incentive”, lucrative pay packages, and disagreements with a new board of directors eventually led to his demise. [Read more…]

Utica Shale – Eagle Ford Shale Debate Pits Texas vs. Ohio

The Utica Shale vs. the Eagle Ford Shale debate has drawn a lot of attention since Chesapeake announced a 1.25 million acre position in the Utica Shale. Aubrey McClendon’s comments have gotten a lot of traction:

As a result of its analysis, the company believes the Utica Shale will be characterized by a western oil phase, a central wet gas phase and an eastern dry gas phase and is likely most analogous, but economically superior to, the Eagle Ford Shale in South Texas.

That quote sent many articles to the press touting the Utica Shale as the new great shale play and made many Texans wonder if we’d lose some drilling rigs to Ohio. You can track the rig count yourself with the Eagle Ford Shale Drilling Index that is updated each Friday, but if you don’t have the time, the counties where the Eagle Ford is present have seen more than 40 rigs come into the play over the past three months. That’s more than 10% of the total U.S. onshore rig count (230+ rigs) working in an area that is economically inferior. The catch, it’s possible, but the Eagle Ford shouldn’t lose much if anything. [Read more…]