TribLIVE

| Business


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Shale pioneer hires Chesapeake for drilling job

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

Daily Photo Galleries

By Bloomberg News
Friday, April 18, 2014, 9:27 p.m.
 

Aubrey McClendon, the pioneering shale wildcatter who helped usher in America's energy renaissance, has hired the company that fired him to drill wells for his latest natural gas venture.

A subsidiary of McClendon's American Energy Partners LP is paying between $23,500 and $26,000 a day to rent seven rigs from Chesapeake Energy Corp., the Oklahoma City-based gas producer he co-founded a quarter-century ago, according to a proxy filing.

Chesapeake, which terminated McClendon last year amid a shareholder revolt, signed the six-month deal in October, according to the filing. Chesapeake's rigs are drilling for American Energy-Utica LLC in the Utica shale formation that stretches beneath much of Ohio.

McClendon, 54, was forced out of Chesapeake by a group of activist shareholders that included billionaire Carl Icahn and O. Mason Hawkins amid investor discontent over management missteps and controversy over McClendon's use of personal stakes in company-operated wells to borrow hundreds of millions of dollars.

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. Nonprofit hospitals in Western Pa. feel pain in finances despite Affordable Care Act
  2. 8 Western Pennsylvania hospitals penalized over infections
  3. Hospital finances still crying ‘ouch’
  4. Beacons track shoppers’ smartphones amid retailers’ aisles
  5. Online price battle heats up with intraday price fluctuations
  6. Ford expands air bag recall across U.S.
  7. Stock market makes biggest gain in 3 years
  8. Natural gas groups says increase in Pennsylvania taxes would bring dire results for economy
  9. Rice Energy spin-off priced below expected range
  10. Wesco cautious, reaffirms guidance
  11. FedEx to buy product-return firm Genco in e-commerce push
Subscribe today! Click here for our subscription offers.