Encino

As Risky Finances Alienate Investors, Fracking Companies Look to Retirement Funds for Cash

Read time: 9 mins
Older adults on a beach bench

A year ago, Chesapeake Energy, at one time the nation’s largest natural gas producer, announced it was selling off its Ohio Utica shale drilling rights in a $2 billion deal with a little-known private company based in Houston, Texas, Encino Acquisition Partners.

For Chesapeake, the deal offered a way to pay off some of its debts, incurred as its former CEO, “Shale King” Aubrey McClendon, led Chesapeake on a disastrous shale drilling spree. Shares of Chesapeake Energy, which in the early days of the fracking boom traded in the $20 to $30 a share range, are now valued at a little more than $1.50.

Encino has marketed itself as a stable source of long-term returns (something the industry overall has struggled so far to create), attracting the managers of one of the world's largest pension funds to drill and frack the land that Chesapeake sold off to repay its enormous debts from fracking nationwide.

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