With all the Midcon executives leaving or being pushed out it's just a matter of time before CHK bleeds what is left of Midcon out. As a none publicly traded company Midcon doesn't have to answer to share holders. Midcon's days are numbered. All to make CHK's numbers look a little better.
4 replies (most recent on top)
You do know that electric companies use natural gas powered engines/turbines to generate electricity, right? And gas lift is far superior and more economical than pumping units in the long run. Chesapeake OWNS a boatload of compression, but yet continues to piss away money on pumping units that they have to BUY. Dumb. Also, the transportation of natural gas has never been bigger. The STACK is literally being covered with plants and booster stations at this moment, just trying to keep up with the demand. If CHK can't make money with all the assest that they have at their disposal, they deserve to fail. It will eventually all be auctioned off a penny on the pound. By then, it may be enough to pay for another logo change or maybe a VP luncheon.
Hard to believe anyone would want compression at this low commodity price. No longer economical.
MidCon shouldered the weight of a failing company back when they were still renting and servicing third party. But ol Dougy Doug wants to stream line the company and get rid of this revenue. Traditionally, compression rental is a HUGE money maker. Let's get rid of that! Great plan. There is only a handful of decent employees left at MidCon anyways. Management is nothing but a bunch of imbiciles promoted by default. Good luck selling that hunk of scrap with all that overhead.
You've made your bed, now LIE in it.