American Energy Partners Business Practices (Aubrey McClendon)

[Pete]

It was reported in the Oklahoman last week that McClendon has leased out a full floor at the Harvey Parkway Building (NW 63rd & Harvey) that Chesapeake just sold to investors after only holding for a year.

I've heard that Aubrey wants to come back strong and as his new enterprise grows, he will build on the land he owns on Broadway Extension & Wilshire (shown in blue below):

[HangryHippo]

Is there nothing we can do to get the man to build closer to downtown? Maybe he just really, really loves having his office not far from his home?

[Teo9969]

Is there nothing we can do to get the man to build closer to downtown? Maybe he just really, really loves having his office not far from his home?

Wouldn't anyone? Besides, he's not building a campus right now. The company he puts together is not going to start at 1,000 or even 500 employees. I imagine it will take them around 6 to 18 months to get to 100 employees and then ~10 years to edge the 500 mark. 500 employees requires some space, but not even something the size of OPUBCO tower.

[ou48A]

Click for more
RIGZONE - For CEOs Like McClendon, Buyout Game Can Be Second Act

For CEOs Like McClendon, Buyout Game Can Be Second Act

Mr. McClendon is meeting with private-equity investors and others to discuss potentially teaming up for new ventures, according to several people familiar with the discussions.

Mr. McClendon also has spoken with energy executives who in the past worked with buyout shops. At this juncture, Mr. McClendon is asking more questions than he is sharing details of future plans. Among his queries: How much autonomy and control would he have if he received financing from a Wall Street firm, according to one person he's spoken with.

[Pete]

No question Aubrey will be back and probably soon. The nature of hard-driven entrepreneurs is that they go through many boom/bust cycles.

But I also think it's pretty clear his new empire will evolve along Broadway Extension.

It will also be interesting to see what he does with his considerable land holdings, mainly rural land in East Edmond and Deer Creek.

[dankrutka]

Thoughtful people tend to be of two minds on Aubrey McClendon...

This. I hate when people frame discussions as either/or arguments. Worthwhile dialogue does not close off possibilities like that...

[Teo9969]

This. I hate when people frame discussions as either/or arguments. Worthwhile dialogue does not close off possibilities like that...

Like!

[warreng88]

It is no secret that Aubrey McClendon is going to do start another company shortly. He has already leased space in the Harvey Parkway Building just east of the campus he built. The county assessor shows it was bought by CHK Land Development Co LLC on 1/13/2012. The $&!t didn't really hit the fan until April 18, 2012 when reuters reported that he borrowed $1.1 billion against his own personal stake in the wells. The building was sold for $3.6 million loss on 12/26/2012. I am curious if he created an exit strategy late last year. He lost his CEO title in June of 2012 and maybe he knew his days were numbered so he had a few floors outfitted in the building, sold it at the end of the year, announced his retirement on 1/29/2013 and leased space from the people the building was sold to prior to his leaving CHK. Not a conspiracy theorist, just asking questions...

[fromdust]

My friend that does titles has said he is already doing work for Aubrey's new company. I'll see if I can get the name again since I've already forgotten it.

[Pete]

Aubrey is back at it... This email was sent to a bunch of people in the oil & gas business yesterday:

*****************

From: Aubrey McClendon [aubrey.mcclendon@aep-lp.com]
Sent: Tuesday, April 16, 2013
Subject: Introducing American Energy Partners, LP

Good day to you! I have started a new E&P company, American Energy Partners, LP, and I am interested in being contacted regarding onshore US assets. My goal is to build a substantial E&P company both through the drillbit and through acquisitions of producing properties.

In particular, I will be looking for deals with a lot of drilling left on them and will also consider undeveloped acreage deals – plus, I am not scared of natural gas.

Thanks, Aubrey

Aubrey K. McClendon
Chairman and CEO

aubrey.mcclendon@aep-lp.com • American Energy Partners
(o) 405.879.9226

P.O. Box 18756, Oklahoma City, OK 73154

301 NW 63rd, Ste. 600, Oklahoma City, OK 73116

[HangryHippo]

Aubrey is back at it... This email was sent to a bunch of people in the oil & gas business yesterday:

*****************

From: Aubrey McClendon [aubrey.mcclendon@aep-lp.com]
Sent: Tuesday, April 16, 2013
Subject: Introducing American Energy Partners, LP

Good day to you! I have started a new E&P company, American Energy Partners, LP, and I am interested in being contacted regarding onshore US assets. My goal is to build a substantial E&P company both through the drillbit and through acquisitions of producing properties.

In particular, I will be looking for deals with a lot of drilling left on them and will also consider undeveloped acreage deals – plus, I am not scared of natural gas.

Thanks, Aubrey

Aubrey K. McClendon
Chairman and CEO

aubrey.mcclendon@aep-lp.com • American Energy Partners
(o) 405.879.9226

P.O. Box 18756, Oklahoma City, OK 73154

301 NW 63rd, Ste. 600, Oklahoma City, OK 73116

Well damn. Best of luck to him. I'd love for OKC to have another CHK minus the financial craziness of the last couple of years.

[GaryOKC6]

Aubrey is back at it... This email was sent to a bunch of people in the oil & gas business yesterday:

*****************

From: Aubrey McClendon [aubrey.mcclendon@aep-lp.com]
Sent: Tuesday, April 16, 2013
Subject: Introducing American Energy Partners, LP

Good day to you! I have started a new E&P company, American Energy Partners, LP, and I am interested in being contacted regarding onshore US assets. My goal is to build a substantial E&P company both through the drillbit and through acquisitions of producing properties.

In particular, I will be looking for deals with a lot of drilling left on them and will also consider undeveloped acreage deals – plus, I am not scared of natural gas.

Thanks, Aubrey

Aubrey K. McClendon
Chairman and CEO

aubrey.mcclendon@aep-lp.com • American Energy Partners
(o) 405.879.9226

P.O. Box 18756, Oklahoma City, OK 73154

301 NW 63rd, Ste. 600, Oklahoma City, OK 73116

This is great news for Oklahoma City.

[Pete]

Brianna Bailey of Newsok.com had a blog post about this last week:

Aubrey McClendon is back in business

[LakeEffect]

I thought he had a non-compete clause... must be a pretty loose clause. The Capital company could skirt that, but I assumed no energy-specific work. Crazy.

[ou48A]

This is great news for Oklahoma City.

Yes, its very good news because he has a lot of talent….
But let’s hope that he has learned something from his mistakes and doesn’t become over extended again and again.

[Pete]

I bet he will follow the same blueprint as before and be very aggressive doing it; that's his style.

But it sounds like more focus on liquids other than natural gas.

[Pete]

Also, the word is that he's been hiring lots of former Chesapeake people.

We all know Tom Price followed him but it sounds like scores of others as well.


This may be a win/win for OKC, as Chesapeake seems to have stabilized and now there will be another E&P player on the scene. And you can bet they will grow fast.

[HangryHippo]

I bet he will follow the same blueprint as before and be very aggressive doing it; that's his style.

But it sounds like more focus on liquids other than natural gas.

I don't mind aggressively pursuing goals, but he needs to exercise a wee bit of restraint compared to his days at CHK. There's a fine line between aggressive and reckless and Aubrey needs to exercise some caution this go round.

[BoulderSooner]

I bet he will follow the same blueprint as before and be very aggressive doing it; that's his style.

But it sounds like more focus on liquids other than natural gas.

i would also bet that when he goes public again (not if when) he uses super shares to retain voting majority control

[ou48A]

AKM and company would be very wise to more closely follow the high school educated Harold Hamm model of doing business in the energy sector.

[HangryHippo]

Do any of you care to help Brianna Bailey out as she posted the following tweet:

Brianna Bailey @briannabailey80

Why would Aubrey McClendon structure his new company as and limited partnership? What does this tell us? Any corporate lawyers out there?

I think it has more to do with liability and structuring of control so that Aubrey runs it with money from others, but I'm not a corporate lawyer so I really don't know.

BTW, did anyone else read the conversation between her and baxtron1000? That guy is an ass!

[soonerguru]

I thought he had a non-compete clause... must be a pretty loose clause. The Capital company could skirt that, but I assumed no energy-specific work. Crazy.

I thought non-competes were unenforceable in Oklahoma.

[Pete]

Brianna picked up on the email we shared on this site and did a full-blown story in today's Oklahoman:

McClendon starts new energy company down the street from Chesapeake | News OK

[Just the facts]

I thought he had a non-compete clause... must be a pretty loose clause. The Capital company could skirt that, but I assumed no energy-specific work. Crazy.

According the paper this morning the non-compete doesn't even start until Chesapeake makes their final severance payment (sometime in 2016), and even then it is very limited in what is considered 'competing'. Personally, I would like to see Ward and McClendon buy out Sandridge and take it private. Even if they go the supershare route that is essentially the same thing as private. However, with the current new LLCs, they can't even sell stock.

[Teo9969]

According the paper this morning the non-compete doesn't even start until Chesapeake makes their final severance payment (sometime in 2016), and even then it is very limited in what is considered 'competing'. Personally, I would like to see Ward and McClendon buy out Sandridge and take it private. Even if they go the supershare route that is essentially the same thing as private. However, with the current new LLCs, they can't even sell stock.

I thought the non-compete started effective immediately through when he was getting paid and finished in 2016 when his severance ended? I understand them not wanting him to compete with them while they are paying him. I don't understand him signing an agreement to not compete when he gains nothing from that agreement.