Aubrey McClendon's penchant for “land grab” as a business model made the recently-ousted Chesapeake Energy CEO infamous - and he's at it again for his new start-up hydraulic fracturing (“fracking”) company in Ohio's Utica Shale basin. It's a formation he once hailed as the “biggest thing to hit Ohio since the plow.”
Under Securities and Exchange Commission investigation for sketchy business practices, McClendon departed Chesapeake with a severance package including $35 million, access to the company's private jets through 2016 and a 2.5% *
return on ownership stake in* every well Chesapeake fracks through June 2014.
Since then, he launched three new start-ups: McClendon Energy Partners, American Energy Partners and Arcadia Capital LLC.
American Energy Partners' headquarters are just half a mile down the road from Chesapeake's, the number two U.S. producer of shale gas behind ExxonMobil. Some of those in McClendon's Chesapeake inner circle have left Chesapeake and joined him (or reportedly intend to join him) at his new ventures.**
Though former Chesapeake employees are barred from working for McClendon, this excludes “any employee assigned to Mr. McClendon as an assistant,” “any employee who has been terminated by the Company,” “any employee who elects (or has elected) to accept any voluntary severance or retirement program offered by the Company,” or “any employee for whom the Company consents in advance to the soliciting and hiring by Mr. McClendon.”
In other words, the scandal-ridden AKM Operations has shape-shifted into McClendon Energy Partners, American Energy Partners and Arcadia Capital LLC.
McClendon's playing the same business plan game using a different company name, with Ohio serving as the first pit stop. Although his business plans were held close to the chest since his Chesapeake departure, recent stories indicate that McClendon's Ohio “land grab” has now begun in earnest.