Analysis: Sharks circle McClendon's Chesapeake
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#1 May 15, 2012
Whose blood is in the Water?
By Dwight Baker
May 15, 2012
Sharks circle McClendon's Chesapeake
"All of the divestitures are at risk," said one investment banker who spoke on the condition of anonymity. "They're all challenged. If you're a buyer and you smell blood would you give full value?"
"It's been a pretty unsuccessful adventure for guys," one investment banker said. "It accrues more value for Chesapeake than for its partners, so a lot of guys are reluctant to go into a JV with him."
First who are the sharks? They are from the Old Line of Barons those from Big Oil and Banking. They are in essence many in the same line of doing business.
Deals are struck to take out those who get in the financial waters without a life preserver. And in the US there have been many that do that without sufficient care to understand how vulnerable they can become ‘Overnight’. When too much is on the line and too many know ---- most say JUST wait till their blood is in the water.
That is my main concern for the unconcern Aubrey McClendon has had toward all in his inner most consorts and/or those in his employment.
The bottom line has always been and shall remain “Who can stay in the game the longest without needing to eat”. Now who are the ones in Oil and Gas including Banking that fit that mold--- the biggest two is the Rockefeller and Rothschild Families. Their staying power is backed by Trillions they laugh at those who declare billions of hoarded wealth is in the financial path of things to do.
There it is ---- pure and simple any one who cares too can understand.
Now how will McClendon fare at staying alive at this just one of his many times to be in deep water without a life preserver?
But what is worse are the many thousands that went along for the McClendon ride and in the end may be pounded down by sudden and drastic changes in their pay checks?
#2 May 15, 2012
Yes, it is always easier to sell on the way up. Aubrey has not seen this side of the business. He will see stalling, negotiating at closing and all of the tactics used when a seller MUST close a deal. He should have listened to Art Berman!!
And Carl Ichon..Aubrey says he has a "relationship" with Ichon...yea...All Ichon cares about is capital. Chesapeake as we know it is finished. This represents a sea level change in the domestic oil biz. The days of super high dollar lease bonuses are over. Chesapeake has stopped leasing and is trying to sell leases. If mineral owners have not leased and are holding out for more money….my condolences.
#3 May 15, 2012
Aubrey says he will laying off land men and will save 350 million a year, but that money or more will go to Goldman as interest on the 4 billion loan..and that is if things go well.
Aubrey says there is a lot of activity in the data room...sure there is...nothing like free information!!
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