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Unfinished business: Analyst predicts four scenarios for Chesapeake Energy after Aubrey McClendon leaves

Julie Anewalt, a research analyst with Grubb & Ellis/Levy Beffort, looked at four possible scenarios facing Chesapeake Energy after the departure of founder and Chief Executive Officer Aubrey McClendon on April 1.
by Steve Lackmeyer and Brianna Bailey Published: March 11, 2013

The report predicts higher unemployment and reduced wages would be felt by the entire retail market under this scenario, with the brunt of the retraction likely to be suffered by merchants in Nichols Hills and near the corporate campus. High-end stores across the city also would see reduced sales.

Scenario: Aubrey McClendon creates a new oil and gas company and Chesapeake Energy remains based in Oklahoma City.

“Industry analysts believe it is unlikely that McClendon will leave the energy sector,” Anewalt wrote.

The Oklahoman reported that Aubrey McClendon is unable to enter the energy industry until June 2017, after all of Chesapeake's severance payments have been made and the six month noncompete period has been fulfilled. However, we anticipate this timetable to be pushed sooner.”

Under this scenario, the report suggests the city could end up with five large energy companies: Devon, Chesapeake, Continental Resources, SandRidge and McClendon's new company. The impact on retail and commercial development with a new McClendon company and Chesapeake surviving is “unknown.”

CONTRIBUTING: Richard Mize, Real Estate Editor

by Steve Lackmeyer
Business Reporter
Steve Lackmeyer is a reporter and columnist who started his career at The Oklahoman in 1990. Since then, he has won numerous awards for his coverage, which included the 1995 bombing of the Alfred P. Murrah Federal Building, the city's Metropolitan...
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by Brianna Bailey
Business Writer
Brianna Bailey has lived in Idaho, Germany and Southern California, but Oklahoma is her adopted home. She has a bachelor's degree in Journalism from the University of Oklahoma and has worked at several newspapers in Oklahoma and Southern...
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