Thread regarding Chesapeake Energy Corp. layoffs

Worth its own post!

I don't think the CHK employees understand what the real company goal (scheme) was. In my opinion the scheme was to make the Officers, Directors and some key Managers rich. Aubrey created CHK by promoting acreage plays. In my opinion attempting to drill economic wells didn't matter. Booking highly inflated reserves on every well and acreage play attracted the dupes. Every partner, property purchaser, royalty trust owner, or buyer of most anything CHK sold or spun-off got burned. Bottom line is the proceeds from these deals and issuing debt to keep drilling built CHK. People are naive if they believe production revenue alone will keep the doors open at CHK.

Anonymous120575

by
| 591 views | | 3 replies (last ) | Reply
Post ID: @OP+CCoXWeY

3 replies (most recent on top)

Pure speculation of one segment of the old business plan. Turning $25 per acre into $5,000 acreage. The play - Locate any area with shale potential and begin leasing as much as possible on the down low. Once the vast majority of acreage is leased, start the public hype about potential reserves. Nominate a few remaining State and Federal acreage parcels for auction. Use two or three lease brokers independent of each other with different bid limits to drive the parcel price up at auction. Now you can say all your acreage is worth what the last auction brought at $5,000 per acre. Your carefully promoted JV partner is now ready to buy into the acreage and carry you on development. Lease operations is a bonus. When you have milked everything possible out of the non-economic play and the partner is squealing, find a buyer with more money than sense that will pay a premium.

by
| | Reply
Post ID: @4jFu+CCoXWeY

The last reason to hold your shitty stock was a cheap dividend play. Now it is utterly worthless. I've taken shits worth more than shares of CHK.

by
| | Reply
Post ID: @1Ico+CCoXWeY

Agree - And it made AKM and his merry band very very wealthy and left a crippled company behind. The APC gang may have moved over to something they can't save.....

by
| | Reply
Post ID: @rng+CCoXWeY

Post a reply

: