DEVON IS NEXT. i have been an operator for nearly 40 years. regarding CHK, i knew Aubrey back in the early late 80's early 90 chalk days. i watched CHK gobble up companies in the 80's and 90's with impunity. i had one of your HEAD bosses, an old friend that came over from Samson tell me one time in the 90's he came back from lunch and A told them "i just bought x company for $400 million over lunch." my friend a P.E. said, "we had not even LOOKED at that company much less ran economics." that happenened more than once. Product price increases bailed the company out then as well as Wall street. Chk then proceeded to run ripshot over working interest partners, royalty owners, (remember the hundreds of millions they have had to pay in class action lawsuits) and proceeded to be one of the worst operating companies in the business for many years. i literally lost millions investing with CHK due to nothing but neglect. I lost over a million bucks on just one well with CHK because somebody "forgot" to tack the surface casing, it came apart during the vertical drill , we had to skid the rig and start over. Much of the old talent i knew jumped ship in the last 5-8 years.
I will say this CHK has tightened the belt on the operating side the past few years and i salute them for that. i wish nothing but the best for the employees and stockholders. The problem is talent flees when the ship is taking on water, and grass is much more green and profitable on the other side (Permian basin.)
Devon energy has taken CHK's place as the worst operator in the business. we have had leases with Devon operator making 200 BOPD losing money. i have a close friend there that is a top P.E. he tells me Devon is going the way of CHK. $10 bill in debt, selling off assets right and left and spending money like a drunk sailer. we have audited Devon numerous times and found MILLIONS of dollars in over charges, duplicated charges , etc. Devon is on round 2 of employee layoffs that started today. i wish those dedicated employees luck where ever they land.
Karma is a b--ch. Chk and Devon is getting it's dose of Karma now, but as oil prices head back into the $40-50 sooner than people think, it will spell a well deserved end to both.