Secondhand hand info but good source- CHK is fast moving to their QUAD model for well sitings. Four units/SITE. Felter, Alexander, Merryall , to start . Smaller one directional units.
Net negative in our book. Melissa
May I guess? More lease holders to share the spoils means less return in royalties.
I have a some land in the NW Felter site, what does this mean for me???
If I were leased to CHK this QUAD model would not be my first concern. First concern would be wondering what will happen if CHK runs out of cash.
Straight up, I would ask myself, were I a CHK royalty owner, where I rank within the hierarchy of CHK creditors. CHK has a bunch of 'em. And the company is not doing all that great.
If you are leased or being deveopled by CHK, you are, no way out.
If they were to start defaulting , they would be having fire sales to
liquidate nd raise liquidity. if it gets to that ooint or beyond, most likely
the company woud sell itself or if no bidder, go Chap 11.
KEY is NE PA Maarcelllus is among the best gas assets in the world today.
5 10 15 cos would bid for this asset. Could be some disruption but net, a new owner would be a
welcome in my book.
"own valuable assets" period, everything else takes care of itself.