Thread regarding Chesapeake Energy Corp. layoffs

I agree with Another banker. There is wayyyy too much risk for keeping the company intact for the banks. Banks, actually most companies, are all about risk vs return.

#1 As I said before, oil is considered "dirty" and its getting harder to find big fish to invest in it
#2 Another banker nailed it, commodity price risk.
#3 Political and public enemy/target
#4 You aren't making widgets here, you're depleting the reservoirs AND burning capital. I know, I know, you're finding "new" ways to cut cost and add value to the reserves. No one believes these lies anymore.

So technically, you could mess around for a couple years. But WHY? You risk the price dropping? You put a target on your investment firm? You WILL continue to prove the new child wells are worst than the parent wells? Burn a lot of capital? Risk even more lawsuits?

If the banks only had one of these risk, it could be mitigated, but there are at least four. There is a ton of risk and very little additional returns. That's why CHK will be liquidated.

Your pessimism is very intriguing, but the picture you portrayed is missing a crucial component: the next oil price crush.
We all know it’s coming. There are not that many years for the scheme you illustrated to take place indefinitely. If things go south again in 1-2 years, the banks need to divest and get the f**k out before then, or their >$7 billions equity may largely sublimate; this is by far their least favorable and most feared outcome.
Plus, as someone mentioned below, oil industry is so out of fashion now, banks can find so many new “green” companies to invest into and run filthy schemes with!

It's not that simple. Never is.

Sure CHK is owned by banks, but instead of selling assets right away & shrinking the company into nothing, they will first shuffle some assets around for a while & portray a fresh start poised for growth and appear to have strategy.

Too often, public companies are abused merely as mechanisms to transfer wealth, and that is what will happen for a few years before CHK is broken up. The interests that now control CHK have a stock which they have inside info and can manipulate and put retail investor money into their own pockets. They will enjoy that for a while before it becomes more profitable to simply sell everything.

Just one example (and it gets far more sophisticated than this): said banks know what our earnings will be before ER, so they or seemingly unassociated funds can short the stock ahead of time. Lol. And so on and so forth...

Why break it all up and sell when you can first line your pockets for a few years? This is an excellent opportunity for fraud. You guys are so pessimistic, but not as pessimistic as me.

Certainly explains why the raises were garbage. They could care less if you pack your bags and leave. They're not trying to retain talent. Just got to keep the ship a float long enough to sell.

I agree 200% with TheBanker, you need to be drinking a lot of cool aid to believe that CHK can somehow avoid to be dissolved and liquidated by the banks, whom by the way own almost 80% of the company, not 70%!

Only a fool believes CHK is buying anything. The top ten shareholder/investors own 70% of the company. Investor/bankers care about getting their money back and making money for their clients, not drilling wells and burning through capital. What's the quickest way for investors, who also want out of "dirty" oil and gas, to get their money? Not selling shares because the price will tank, but to sell the assets. Prices are prime to sell, why would an investor want buy in this market? Don't believe me, why did the bankers force CHK hedge so much? They don't want the risk. This is the same reason they aren't going to drill (risk) their way out of this. That's also why all the drilling cheerleaders are gone. The market is prime for selling, and for that reason CHK will be split up and dissolved over the next year.

How many publicly held and private companies have been bankrupted by the Haynesville to date? By my reckoning, it’s more than 10 but less than 20, but my friends say it’s more than 20.

Comstock, a very recent Haynesville bankrupt itself, is Jerry Jones latest scam---nothing more and nothing less. I will admit they do have a history of purchasing garbage, having been ginned up by CHK. We sold them East Texas acreage around 2010 and they didn’t go bankrupt for almost 10 years. That shocked me, since I knew what they were actually getting. That proves that if you’re willing to lie and steal from unsuspecting victims, you can lose money for years without having to file with Judge Jones in Houston.

The Haynesville is probably going to end up bankrupting several additional Shalers before all is said and done.

Vine Energy completed an IPO in 2020 and filed their first 10Q with the SEC in May 2021.

Prior thereto, Vine was Private and not much financial information was available that you could trust.

Anyway, Vine lost 30 million in the first quarter of 2020 and 60 million in the first quarter of 2021.

Ain’t the Haynesville grand?

Vine's testing of the IPO waters isn't going great. BPX and Goodrich are both legitimate options since they wouldn'tbe too worried about CHK watering them down. Nadel and Gussman isn't letting go of Bluedome right now. If CHK stock had 2-3x the current EPS a stock deal with Comstock would happen.

Please tell just which company CHK will acquire in the Haynesville. USG is looking for bolt on acreage - which puts Blue Dome in play and USG has plenty of cash/credit. Since CHK gave away Mansfield to Williams and Indigo is going to Southwestern, maybe Goodrich ( they pulled the same BK swindle as CHK ). Please enlighten us Mr. Mike.

You think 70% of the people are going to leave on their own? This will be the biggest, percentage, layoff in the history of CHK, a 60%+ reduction.

How about the hugely overpaid Wildhorse Ponzi scheme (read - Brazos V)?

That’s the big elephant in the room that nobody talks about, very mysteriously