Chesapeake Business Practices

[thunderbird]

Curious where all of the high-income earners at those companies now work? I'm sure some left OKC but many probably went into a different sector.

All the ones I know just got jobs at other O&G companies. One went back to lawyering but is nowhere near his previous pay. It's hard to get a total compensation of $300k+ in OKC.

[StrongCider]

Tapstone awarded Mid-Con assets at bankruptcy sale for $134mm. BCE-Mach will be the back-up-bidder. At least part of the CHK empire will stay in OK for now...

[sooner88]

CHK's entire campus is about to be put on the market for sale. After years of speculation with what will happen to it if they go under, it looks like we're about to find out.

[Pete]

CHK's entire campus is about to be put on the market for sale. After years of speculation with what will happen to it if they go under, it looks like we're about to find out.

Not all of it, just the part east of Classen.

I'll have a story on this soon.

[BG918]

CHK's entire campus is about to be put on the market for sale. After years of speculation with what will happen to it if they go under, it looks like we're about to find out.

Wow end of an era. A far cry from the high-flying days in the early 2010's.

[dankrutka]

It really would be a great college campus.

[Teo9969]

I wonder if this wouldn't be a good target for the city to try and get on the cheap and then use in a bid to lure a headquarters. Not that the city is exactly swimming in cash, but this is quality office space and would be the kind you would want to be able to offer to prospective candidates.

[SEMIweather]

I also think it would be a great setup for a tech incubator, sort of like a mini Denver Tech Center. Plenty of room for growth as well between 57th, Shartel, 63rd, and the railroad tracks.

[Teo9969]

Pete, can you post the most recent map you have of CHK owned land?

I'd like to see what's about to get divvied up.

[Teo9969]

Another argument for the city to buy (a part of) it, if it can be had at a good price, is that it is basically hanging out at the terminus of where the proposed Street Car line is going to go up Classen. Additionally, if the commuter rail is going to run BNSF, the lot bordered by 59th/Lee/61st/BNSF is ripe for a station + mixed use (or residential at the very least) development.

[BG918]

Another argument for the city to buy (a part of) it, if it can be had at a good price, is that it is basically hanging out at the terminus of where the proposed Street Car line is going to go up Classen. Additionally, if the commuter rail is going to run BNSF, the lot bordered by 59th/Lee/61st/BNSF is ripe for a station + mixed use (or residential at the very least) development.

Good point on the commuter rail station, that is a great spot for a dense TOD in between the future station and the CHK campus.

[bombermwc]

Good point on the commuter rail station, that is a great spot for a dense TOD in between the future station and the CHK campus.

With the massive reduction in the CHK workforce, does the route potentially change now?

[Bits_Of_Real_Panther]

Are there Christmas lights this year in the trees on the CHK campus, haven't been by lately?

[securityinfo]

Are there Christmas lights this year in the trees on the CHK campus, haven't been by lately?

No, not really. There may be a few lights here and there, but nothing like the old days.

[Dob Hooligan]

With the massive reduction in the CHK workforce, does the route potentially change now?

I gotta hope that with soooo much office space built the number of bodies per square foot will eventually fill out within my lifetime. Different owner, but still using good space.

[mugofbeer]

The fact they built multiple smaller buildings vs. a massive single structure should help it lease out once Covid is up and business starts to recover. It may be 3 or 4 years though.

[SEMIweather]

With the massive reduction in the CHK workforce, does the route potentially change now?

No, because the route pretty much has to follow the existing rail line that runs from Norman to Guthrie.

[Teo9969]

No, because the route pretty much has to follow the existing rail line that runs from Norman to Guthrie.

On top of that, there's absolutely nothing between CHK and 23rd that is anywhere near ready for a stop, since between 23rd and 50th the tracks are on the industrial side of 235.

You could argue no other area that could potentially be served by any potential commuter route has more to gain than the CHK area from TOD.

[bombermwc]

Fair enough. I am hoping the commercial real estate market picks back up after COVID. So many companies have decided that they can reduce their footprint and have people stay home permanently, it's really a grave concern for this market. My fear is that we're going to end up with a massive amount of empty space across the country for a decade.

Yes, a lot of people have worked from home, but i'm also hoping that corporate America does stop and think about the impact that has on the employees. The more entry level they are, the less room they have. It was one thing to go home thinking it was going to be a couple of months of setting the PC up on their dining room table. It's another thing to do it permanently when they don't have room. I'm fortunate that my wife and I have the space that we could both set up desks at home but that's made our home feel more "full" than it has ever before. I do not want to work from home permanently if I dont have to. Yeah the lack of a commute is great, but I need people!!!!! My pessimistic side says that the "stay home" view will take hold though and we'll have either a massive reduction in real estate prices to try to attract tenants, or we'll just have empty spaces all over the place.

I agree that the smaller CHK spaces could work, but that only really works if they were built as commercial structures and not cottage homes. Does anyone know if that's an empty floor plate or are those "sticks" load baring? It makes a huge difference in the place being easily leased again if the space is flexible. If it has to stay the way it is, it's more difficult to match a tenant that has a need, with how the space is stuck.

[PaddyShack]

I would think any business that owns their space would be quick to move colleagues back in to justify their ownership costs, as is the case with my company. I wouldn't mind keeping a part-time office, part-time home schedule, just to reduce the amount of commute I have as well as giving me a couple of get-work-done-with-no-office-distractions days.

[gopokes88]

CHK will emerge from BK soon. 5.1B valuation, 1.8B in debt. Equity will be wiped out. Won't have their Oklahoma assets as those were already sold, but the rest of the company will be kept in tact. All the M&A activity as of recent has hovered around Permian so don't think they'll be a target for that.

[gopokes88]

https://dm.epiq11.com/case/chesapeake/dockets

[AMinEdmond]

CHK will emerge from BK soon. 5.1B valuation, 1.8B in debt. Equity will be wiped out. Won't have their Oklahoma assets as those were already sold, but the rest of the company will be kept in tact. All the M&A activity as of recent has hovered around Permian so don't think they'll be a target for that.

Great info gopoke! So help us folks not in O&G translate some of this info.. Are they primed to get bought out? Or are they healthy enough to stick around for a while?

[gopokes88]

I’d be really surprised if they got bought. Maybe by another gas player, they don’t have Permian and all M&A activity has been in the Permian.

[gopokes88]

As far as health financially they’re very healthy now having ejected about 7 billion in debt.