Chesapeake Energy Corporation (NYSE:CHK)’s McClendon at the peak of success, Marathon Oil Corporation (NYSE:MRO)
Aubrey McClendon, has been at the helm of Chesapeake Energy Corporation (NYSE:CHK) for over two decades. During his tenure as the chief executive, he has received extremely generous pay packages and also been very open-handed in investing CHK’s cash to build a veritable natural-gas muscle-puller.
He is now pitching his new energy company to Wall Street and all of a sudden asking for large amounts of cash, and exceptionally large chunk of profits and a massive degree of control over the new business.
In April, the 53-year-old McClendon set-up shop in an Oklahoma City building, conducted informal meetings with numerous prospective backers and also sent a lengthy letter to around twelve private-equity firms. The letter stated that McClendon wanted to raise around $2B-$3B as “initial equity capital” for American Energy Partners LP, his new venture. It is slated to be an exploration-and-production company.
An experienced hand
McClendon literally built Chesapeake from the ground-up. What started out as a small, 10-employee company was nurtured into the United States’ 2nd largest natural-gas producer. Since its 1993 debut until the time McClendon exited from the company in April, Chesapeake Energy Corporation (NYSE:CHK)’s shares rose by 1,407% which literally dwarfed the around 250% gain for the S& P’s 500-stock index at that point of time.
Tilling the oil fields
Another muscle-puller of the U.S oil and natural gas company, Lee Tillman, Exxon Mobil Corporation (NYSE:XOM)’s vice-president of engineering, will be taking over as CEO of Marathon Oil Corporation (NYSE:MRO), once Clarence Cazalot retires from the post at the end of 2013. Tillman has a vast amount of experience in some of the most complex energy fields in the world, including Scotland, Norway and Indonesia. Knowledge and experience is power and it will help MRO in its expansion efforts in America’s shale fields, Canada’s oil sands, as well as in Angola and Iraq.
The 51-year-old Tillman has worked at Exxon since 1989 after having earned a Ph.D. at the Auburn University. Though a chemical engineer by education and training, he is an avid car enthusiast and said that at one point of time he had also dreamt racing Formula 1 cars. Well, his need for speed will surely help Marathon Oil Corporation (NYSE:MRO) move into top gear.