CHK dumps minerals they bought from locals using front companies

I wonder if CHK has ever done a deal where there wasn't some type of con/double talking involved. 

In fact, I wonder if any of the Shalies have done any deals where there wasn't some type of con involved.

Oh Yeah!  They are "uniquely" qualified.  Indeed.  They are all as dimly witted as they are bereft of character.

On the bright side, we do know it was a distress sale so let's hope CHK lost money.

Here is the story:

On January 29, 2016, Houston-based Haymaker Resources closed on the acquisition of mineral and royalty interests from certain affiliates of Oklahoma City-based Chesapeake Energy Corporation. The acquisition includes producing and non-producing mineral and royalty interests associated with over 8,500 wells across 24 states and 324 counties. The majority of production comes from the Mid-Continent, Haynesville, and Appalachia regions. Final closing price is subject to post-closing adjustments.

Haymaker CEO Karl Brensike said, “In the current market environment, operators are focusing on their core assets more than ever before. I think everyone can agree that there is nothing more non-core to an operator than owning non-operated royalty interests. This was a complex transaction, involving numerous business units formed over Chesapeake’s 30 years as a very active acquirer of premier oil and gas assets. I am proud of our team, which is uniquely capable of executing these types of transactions. We are fortunate to have a capital structure that allows us to continue acquiring aggressively throughout the current commodity cycle."

DLA Piper advised Haymaker on the transaction.

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Replies to This Discussion

Permalink Reply by Paul Butler on February 23, 2016 at 2:51am

This morning, on a stock blog, an individual was musing about whether he should buy 10 shares of CHK or go have a nice breakfast at McDonalds.

They cost the same.

Every dog has his day.

Permalink Reply by bo boboski on February 23, 2016 at 10:57am

What goes around, comes around.

Mike MurphyPermalink Reply by Mike Murphy on February 24, 2016 at 4:20am

so where in the Appalachia regions did they sell acreage????????

Permalink Reply by Paul Butler on February 24, 2016 at 5:24am

Of course it's not clear.

Obfuscation and prevarication are the coins of the realm in dirt bag land. 

It's the only thing they know.

It's the only thing they have going for them.

Without it they would be asking "would you like fries with that"  instead of "are you unleased."

You take the double crossing/talking, cheating and stealing out of their game and there is very little.

CHK's Financial Statements, released yesterday, show they don't even make money off of oil & gas exploration (that's an understatement). 

They made more money transporting, treating and compressing than they did from selling oil & gas.

Ain't that the damndest thing?

The victimization of the mineral owners to pay the banks is scandalous.

Permalink Reply by Philip Brutz on February 24, 2016 at 5:58am

Why is it unethical for CHK to sell some of it's interests?

Permalink Reply by Paul Butler on February 24, 2016 at 8:25am

They used "certain affiliates" to acquire the positions.

Focus in on that Phil.

Start with the 10Q's and 10K's.

Oh what a tangled web we weave.

It would be nice to know what they paid and for what they sold.

Haymaker better keep the period for adjustments open indefinitely.

I'd be surprised if they can prove, with marked up instruments, run sheets, schematics and indexes, marketable title for any of it.

Haymaker better have "unique" skills. 

"

Mike MurphyPermalink Reply by Mike Murphy on February 25, 2016 at 1:25am

Who is to say Haymaker will develop the acreage or just resell them at a profit.......production is not the only way to make money for these oil companies

Permalink Reply by jonathan M. on February 25, 2016 at 4:54am
Haymaker is not developing anything. This is royalty they purchased not leasehold.
Permalink Reply by INVICTUS on February 25, 2016 at 6:41am

I'd like to hear comments about MAC, "Mineral Acquisition Company".

They were an entity combined of CHK and KKR.

I received several rather substantial O/G offers from them, several through various legal firms I deal with as well as myself individually. They wanted my lease in its entirety (Not royalties)

My question is if they were ever in the business of purchasing coal rights?

Permalink Reply by Mike h on February 26, 2016 at 5:43am
If they "sold" my lease without asking consent, they violated the terms of the lease. Just saying.
Permalink Reply by Joe on February 26, 2016 at 9:37am

You have the money to buy it back under right of first refusal?

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