American Energy Partners Business Practices (Aubrey McClendon)

[Just the facts]

Wow. Some of you sure throw in completely off topic points so that you can try and "win" the argument. This debate started with someone saying CHK employees are treated unfairly. And this is such a ridiculous statement. What's unfair about being an employee at CHK? The good pay? The fact that CHK will match up to 15% of your 401K? The free gym, basketball courts, etc.? The free tickets to Thunder games, concerts, etc? Working in Class A office space? The free shares of stock you get every six months? All of the corporate events/celebrations they put on for free? And I'm sure there are dozens and dozens of other perks I don't know about or can't think of right now. You have to be lying to yourself if you think working in an office with 10 people and getting none of the above mentioned perks is better than working at CHK.

This is the whole subject of the debate. AM did not covet every nickle he could get his hands on. He shared his wealth with many of his employees and the community at large - sometimes to a fault. What is his reward from the investment community for being so open with the corporate treasury? Answer, the door. Queue defense of the investment community in 3...2...1.

Hopefully next time he won't have to run a public company so he can operate it as he sees fit.

[Rover]

You have defined the limits of the debate pretty well Rover. Unless I are for the gang rape of corporate America by the investment community then I am not a capitalist. Van Jones and Saul Alinksky couldn't have defined Capitalism better themselves.

Alas if capitalism now means getting as much money as you can at all human and environmental cost maybe I am not a capitalist after all.

I think you have no concept of capitalism, just hysterics, gross generalization and "power to the people" isms. You act like trying to bring Chesapeake back from the brink is greed. You think the growth and what it has contributed to OKC is nothing. You seem to hate all successful people and despise profit as a motive.

Chesapeake has made MANY people in this city wealthy by buying up low value property at exaggerated prices. They have employed 1000s of people for many years paying great wages and giving them many amenities which they appreciated. They made landowners wealthy by paying big $ to royalty owners, many of whom were barely making it landowners. They created construction jobs, transportation jobs, restaurant jobs, and on, and on and on. In the meantime, their stock has continuously gone down while investors lost billions of $. The growth came due to leverage and now it is time to pay the piper.

If it is AM you are jealous of, so be it. But through his "greed" he has significantly helped this city and thousands of people. So, tell me about your significant contributions to the betterment of this community and its people. How many do you employ directly or indirectly?

[OKCTalker]

Hijack.

[Just the facts]

Rover - once again, you have either misread something I wrote or confused me with someone else. Now, 'power to the humans' and all that jazz.

http://www.okctalk.com/other-urban-d...tml#post616193

[HangryHippo]

Wow. Some of you sure throw in completely off topic points so that you can try and "win" the argument. This debate started with someone saying CHK employees are treated unfairly. And this is such a ridiculous statement. What's unfair about being an employee at CHK? The good pay? The fact that CHK will match up to 15% of your 401K? The free gym, basketball courts, etc.? The free tickets to Thunder games, concerts, etc? Working in Class A office space? The free shares of stock you get every six months? All of the corporate events/celebrations they put on for free? And I'm sure there are dozens and dozens of other perks I don't know about or can't think of right now. You have to be lying to yourself if you think working in an office with 10 people and getting none of the above mentioned perks is better than working at CHK.

Sorry, but I have no sympathy for someone saying they are "overworked". Why are they overworked? Because they might have to work 45 hours a week rather than the standard 40? Boo hoo. That's life. That's called the real world. You want to get somewhere in life, you have to work hard. You have to put in a little extra time at the office every now and then.

The only thing that should be criticized at CHK is the fact that SOMETIMES promotions are political rather than who actually deserves it. But I'm sure that is the case for many companies around the world, not just at CHK.

Wow, yes, this whole thing is about an extra 5 hours a work week. You're absolutely right.

[RadicalModerate]

Having just--well, in reality, about three hours ago--made a minor detour off of Western, on the way to pay my mortgage payment, I would suggest that Aubrey might want to get on down to his slice of MonopolyHotelBurg and check the status of Construction Standards before O.S.H.A. (etc. incl. EPA) is--or aren't--all up his bee-hind....

On the other hand, I have been wrong before.

(i've never seen such meaningless clutter . . .
cranes: cool . . . roadways: suck . . . workers: lounging . . . wooden props under poured concrete passing as scaffolds?: you be the judge. of course it is a long bicycle ride from Jacksonville, FLA, so . . . =)

[trival sidebar: in the oil business, "tour" is pronounced "tower"]

[Lafferty Daniel]

This is the whole subject of the debate. AM did not covet every nickle he could get his hands on. He shared his wealth with many of his employees and the community at large - sometimes to a fault. What is his reward from the investment community for being so open with the corporate treasury? Answer, the door. Queue defense of the investment community in 3...2...1.

Hopefully next time he won't have to run a public company so he can operate it as he sees fit.

This is not the whole subject of the debate. The reason he was shown the door was not because of employee benefits. It was his own personal greed that was a big part of it (having CHK buy his own personal map collection for $12 million, etc.)

I guess I should have singled out Bomber when making my post. I was responding to his "AKM has treated his employees poorly" comment. That wasn't the direct quote. I paraphrased.

[Lafferty Daniel]

Wow, yes, this whole thing is about an extra 5 hours a work week. You're absolutely right.

Excellent contribution.

[Snowman]

This is not the whole subject of the debate. The reason he was shown the door was not because of employee benefits. It was his own personal greed that was a big part of it (having CHK buy his own personal map collection for $12 million, etc.)

I guess I should have singled out Bomber when making my post. I was responding to his "AKM has treated his employees poorly" comment. That wasn't the direct quote. I paraphrased.

I expect it had more to do with the gamble he made which lead to the margin call on him, that hurt their shares value, or not positioning the company better for the nosedive in natural gas price. The maps and other grievances were just something they had a better chance with sticking to him.

[zookeeper]

I expect it had more to do with the gamble he made which lead to the margin call on him, that hurt their shares value, or not positioning the company better for the nosedive in natural gas price. The maps and other grievances were just something they had a better chance with sticking to him.

No, it didn't even have anything to do with the price of gas. That's what McClendon wants you to think of course. It was sweetheart deals made with so many that they're apparently having a hard time sorting out all the shell games to cover up his personal profit from the use of his public company. Reuters and others did major digging and uncovered what turned into everything many suspected. He's now still under criminal investigation personally, they really don't want to talk about that around here, and the company itself still has many legal battles to fight.

Those who come here and defend McClendon blow me away. I mentioned that it's easy to treat your employees well when you're doing it with OPM (other people's money) and that response is what started people claiming him as their hero and saying he didn't have to do all he did for his employees. My point and I've seen others make the same argument is that using OPM he was in a position to solidify a lot of devotion with great benefits and all that. But in the end it was not the responsible thing to do and the army of employees loaded with goodies was part of the problem, not really something to be commended. People around here are too easy on this guy who if he hadn't been stopped when he was could really have sunk Oklahoma City. As it is maybe it's salvageable, but it's in spite of McClendon.

[Snowman]

No, it didn't even have anything to do with the price of gas. That's what McClendon wants you to think of course. It was sweetheart deals made with so many that they're apparently having a hard time sorting out all the shell games to cover up his personal profit from the use of his public company. Reuters and others did major digging and uncovered what turned into everything many suspected. He's now still under criminal investigation personally, they really don't want to talk about that around here, and the company itself still has many legal battles to fight.

Those who come here and defend McClendon blow me away. I mentioned that it's easy to treat your employees well when you're doing it with OPM (other people's money) and that response is what started people claiming him as their hero and saying he didn't have to do all he did for his employees. My point and I've seen others make the same argument is that using OPM he was in a position to solidify a lot of devotion with great benefits and all that. But in the end it was not the responsible thing to do and the army of employees loaded with goodies was part of the problem, not really something to be commended. People around here are too easy on this guy who if he hadn't been stopped when he was could really have sunk Oklahoma City. As it is maybe it's salvageable, but it's in spite of McClendon.

I could care less about defending him, they had no problem ignoring what was going on as long as the price was going higher, had it kept that pace they would have likely continued giving the company a free pass.

[RadicalModerate]

Aubrey, the person, has almost certainly never "coveted" anything in his life:
Apparently, he has never had "to do without" and therefore "covetousness" can't possibly enter into his scheme of things/productive paradigm.
Unfortunately, the B-Side of that is a "private skool" education doesn't have even an elective course to learn that lesson.

I hope that, when the dust settles and the chips fall where they may, that Mr. McClendon will turn his sights and talents toward . . .
oh . . . i dunno . . . restoring The Olde Railroad Junction of Britton, OK . . . =)

[zookeeper]

I could care less about defending him, they had no problem ignoring what was going on as long as the price was going higher, had it kept that pace they would have likely continued giving the company a free pass.

Sorry Snowman I really wasn't thinking of you when I wrote that expect the part you said about gas prices was my jumping off point I guess. You're not one of the ones I was thinking about.

[CitySlickR]

Henry Ford got fed up with his investors and took it private.

[PhiAlpha]

No, it didn't even have anything to do with the price of gas. That's what McClendon wants you to think of course. It was sweetheart deals made with so many that they're apparently having a hard time sorting out all the shell games to cover up his personal profit from the use of his public company. Reuters and others did major digging and uncovered what turned into everything many suspected. He's now still under criminal investigation personally, they really don't want to talk about that around here, and the company itself still has many legal battles to fight.

Those who come here and defend McClendon blow me away. I mentioned that it's easy to treat your employees well when you're doing it with OPM (other people's money) and that response is what started people claiming him as their hero and saying he didn't have to do all he did for his employees. My point and I've seen others make the same argument is that using OPM he was in a position to solidify a lot of devotion with great benefits and all that. But in the end it was not the responsible thing to do and the army of employees loaded with goodies was part of the problem, not really something to be commended. People around here are too easy on this guy who if he hadn't been stopped when he was could really have sunk Oklahoma City. As it is maybe it's salvageable, but it's in spite of McClendon.

You are incorrect. Again I'm sure all of the media crap was the nail in the coffin, but it all started with the margin call reducing his stake in the company, low commodity prices, their focus on one commodity, and failing to mitigate the risk by hedging. Nothing more will come of the media witch hunt. Your lack knowledge of the situation and the oil and gas industry as a whole makes any further argument pointless on my part.

[Rover]

While it was most likely time for AM to turn over the leadership of the company, I have little sympathy for the larger investors who forced him out. They are extremely sophisticated and knowledgeable investors who had to know EXACTLY what AM was involved in and what the operating philosophy was. They invested because AM had created a fast track to growing assets through extreme leverage. They waited and pounced once they thought that tactic was maximized and extreme growth was no longer possible at the same rate. With the asset sales occurring for cash flow, I believe they wanted more of a say in what assets were retained and what assets were to be sold. Their interest is in ASSETS, not in an ongoing company. They are sharks who were waiting for blood in the water. When AM nicked himself shaving and bled, they were right on top of it. But make no mistake, they invested with full knowledge and are using tactics that have been financially rewarding for them in the past. Unfortunately, AM's "damn the torpedoes, full speed ahead" approach played right into their hands...that and he was a victim of his genius...so successful at getting gas out of the ground he drove down prices.

[Just the facts]

Hmmm, I guess I am not the only person who thinks this way.

SandRidge shareholder vote could have broader implications for Oklahoma City | News OK

Tulsa money manager Jake Dollarhide said the effort is driven by out-of-state investors focused only on the stock price.

“These big industry players don't care about any effect on Oklahoma City or Tulsa,” said Dollarhide, CEO of Tulsa-based Longbow Asset Management Co., which owns SandRidge Stock.

“They don't care about contributions to the community or feeding the hungry here. This is all to help their returns. They want to maximize the value for their clients. They want to make sure they can feed their families and that they can worry about feeding the hungry and supporting the arts community in their towns.”

[Pete]

While it was most likely time for AM to turn over the leadership of the company, I have little sympathy for the larger investors who forced him out. They are extremely sophisticated and knowledgeable investors who had to know EXACTLY what AM was involved in and what the operating philosophy was. They invested because AM had created a fast track to growing assets through extreme leverage. They waited and pounced once they thought that tactic was maximized and extreme growth was no longer possible at the same rate. With the asset sales occurring for cash flow, I believe they wanted more of a say in what assets were retained and what assets were to be sold. Their interest is in ASSETS, not in an ongoing company. They are sharks who were waiting for blood in the water. When AM nicked himself shaving and bled, they were right on top of it. But make no mistake, they invested with full knowledge and are using tactics that have been financially rewarding for them in the past. Unfortunately, AM's "damn the torpedoes, full speed ahead" approach played right into their hands...that and he was a victim of his genius...so successful at getting gas out of the ground he drove down prices.

A lot of the big investors are activists who invest specifically because they believe the management is off course but there are some sound underlying assets.

Of course they are looking to turn a profit which is the only motivation for getting involved in the first place.

This is the system we have and the role shareholders play in helping to shape corporate direction is a very big part of it.

[Just the facts]

This is the system we have and the role shareholders play in helping to shape corporate direction is a very big part of it.

The big question is, is it sustainable? The story on Sandridge I linked to above indicates that this is a rapidly growing trend but generally this type of activity can only happen once, after the company is sold off in pieces it can't be done again and there are only so many public companies. I think it will have a chilling effect on companies considering going public and it is already resulting in companies going private again.

Personally, I am 100% in favor of companies remaining private or returning to private control. I think it is one of the best thing that can happen to America.

[Rover]

Public capital investment has been a huge part of distributing wealth resulting from American prosperity. Having companies owned by a few VERY wealthy individuals without other shareholders to hold them in check is not the answer. Having the capital to grow that is provided by sales of shares to the public is a key component to the incredible growth of this country and why it has been a world leader in enterprise. It surprises me that you want to take the participation of the little people out of their hands.

The problem is that too many of the smaller shareholders fail to understand or keep up with the issues because they don't take their investor's responsibilities seriously. If the smaller Chesapeake shareholders actually banded together they would be way more powerful than Icon and any fund investor is now. Problem is, they don't organize and they don't try to enforce good management..they are way too passive and too lazy to be truly informed. They keep signing their proxies over to management to vote for them. Then they act surprised when things are out of control and these minority investors come in and take the company's future away.

[onthestrip]

Hmmm, I guess I am not the only person who thinks this way.

SandRidge shareholder vote could have broader implications for Oklahoma City | News OK

Most fellow Oklahomans do agree with this its just that when the CEO begins to loot the company for personal gain then I cant say that TPG doesnt have a good argument. Because if you look at the facts, Ward has taken a whole bunch from Sandridge in some shady ways yet has produced nothing. In fact hes lost money for shareholders over 6 years.

[Just the facts]

Well, keep in mind that the activist investors did not buy at the peak of the price nor duirng the IPO. They bought when prices were low because they saw they can sell the companies off in parts and make a quick dollar. That isn't good for the company, the long-term investors, the employees, not the communities where these companies do business, but it is great for the uber rich on Wall Street who fund these wealth management companies. Do you ever wonder who is invested in places like TPG-Axon Capital? I assure you it isn't Ma and Pa Kettle.

TPG-Axon Capital Management, L.P.: Private Company Information - Businessweek

TPG-Axon Capital Management, LP (TAC) is a privately owned hedge fund sponsor. The firm provides its services to high net worth individuals, pension funds, and banking institutions.

They produce nothing. The only destory long-term wealth generation for short term gains for a select few wealthy enough to buy into it. They are a cancer on the system. If this practice is the new system (and I think it is) then the whole thing is doomed to failure. Our country was founded on local economies but increasingly control of the economy is being placed in a concentrated pocket of people in NYC.

[onthestrip]

Well, keep in mind that the activist investors did not buy at the peak of the price nor duirng the IPO. They bought when prices were low because they saw they can sell the companies off in parts and make a quick dollar. That isn't good for the company, the long-term investors, the employees, not the communities where these companies do business, but it is great for the uber rich on Wall Street who fund these wealth management companies. Do you ever wonder who is invested in places like TPG-Axon Capital? I assure you it isn't Ma and Pa Kettle.

TPG-Axon Capital Management, L.P.: Private Company Information - Businessweek



They produce nothing. The only destory long-term wealth generation for short term gains for a select few wealthy enough to buy into it. They are a cancer on the system. If this practice is the new system (and I think it is) then the whole thing is doomed to failure. Our country was founded on local economies but increasingly control of the economy is being placed in a concentrated pocket of people in NYC.

You know what also is a cancer on the system? A greedy CEO that has stacked his board with yes-men that get paid very well to say yes.

Im not saying they have the city's or Sandridge's best interests at heart but Tom Ward is bringing this all on himself.

[Just the facts]

You know what also is a cancer on the system? A greedy CEO that has stacked his board with yes-men that get paid very well to say yes.

Im not saying they have the city's or Sandridge's best interests at heart but Tom Ward is bringing this all on himself.

Maybe, but if anyone is going to profit from companies in Oklahoma I would just as soon they be people that live in Oklahoma.

[Rover]

Maybe, but if anyone is going to profit from companies in Oklahoma I would just as soon they be people that live in Oklahoma.

So, HOW a company's leadership acts and it ethics are no matter as long as people you favor are benefitted? That is your sense of ethics? Plundering small investors who invested in good faith and their assets being directed for personal use is okay with you if the loot is spent in OKC? That's an odd sense of how business and society should work.