Rumors about Chesapeake Layoffs

[jbrown84]

I heard a rumor about some very scary layoffs for CHK--as in up high. That's all I can say and it could easily be just a rumor.

[Chicken In The Rough]

Because the price of oil dropped like a stone during the last two weeks, ALL companies involved in exploration are letting contractors go. They are not actually "laying off" these people. They are simply terminating their contracts. These were never permanent employees and they always intended to release them as prospects wind down.

Someone said something about CHK releasing 3,000 landmen in Barnett Shale. I find this figure difficult to believe. This seems to be about 2,500 more than they ought to have in this play. I think that figure must be incorrect.

Speaking for the business in the Bakken in North Dakota: oil exploration companies are closing down prospects and releasing staff all over the west half of the state. The price of oil needs to rise above $90 a barrel for the exploration to resume full throttle here.

[metro]

Because the price of oil dropped like a stone during the last two weeks, ALL companies involved in exploration are letting contractors go. They are not actually "laying off" these people. They are simply terminating their contracts. These were never permanent employees and they always intended to release them as prospects wind down.

Someone said something about CHK releasing 3,000 landmen in Barnett Shale. I find this figure difficult to believe. This seems to be about 2,500 more than they ought to have in this play. I think that figure must be incorrect.

Speaking for the business in the Bakken in North Dakota: oil exploration companies are closing down prospects and releasing staff all over the west half of the state. The price of oil needs to rise above $90 a barrel for the exploration to resume full throttle here.

Exactly! People keep getting contractors mixed up with actual corporate employees. Two totally different things. Sucks people are losing their jobs, but not exactly the same. Hopefully the markets will pick back up quickly.

[soonerguru]

Not trying to impugn the unimpeachably high standards of journalism at the Oklahoman, but where are they on this story? There's nothing today except a reference to yesterday's closing share price. This is the talk of the town -- and probably throughout the country -- and what is our paper doing? Are they waiting for the issuance of a company press release before they do any reporting?

[Midtowner]

Exactly! People keep getting contractors mixed up with actual corporate employees. Two totally different things. Sucks people are losing their jobs, but not exactly the same. Hopefully the markets will pick back up quickly.

I posted the 3,000 layoff rumor. I believe I specifically said "independent contractor" when I posted. Thanks

I think the "laid off" terminology was probably appropriate because CHK probably intends to rehire these folks when things turn for the better.

[jbrown84]

Not trying to impugn the unimpeachably high standards of journalism at the Oklahoman, but where are they on this story? There's nothing today except a reference to yesterday's closing share price. This is the talk of the town -- and probably throughout the country -- and what is our paper doing? Are they waiting for the issuance of a company press release before they do any reporting?

They've covered it pretty extensively. What's NEW today?

[Midtowner]

They've covered it pretty extensively. What's NEW today?

His critique is that the Oklahoman isn't out there finding facts to tell a story and that they're relying 100% on press releases from CHK.

[lasomeday]

CHK is known for bullying around reports and Wall Street analysts for reporting the facts. I have heard of them threatening a few analysts for giving them bad financial reviews and reporting CHK as a SELL SELL SELL! So, don't be surprised that nobody is doing anything until they release the press release. The reporters probably don't want to be harrassed by CHK.

[OUGrad05]

A bit of a sidenote...its funny to see people griping about the Oklahoman...I agree its a pretty crappy paper, but its better than the Tulsa World that I have to live with


I'm just glad I subscribre to the WSJ.

[jbrown84]

His critique is that the Oklahoman isn't out there finding facts to tell a story and that they're relying 100% on press releases from CHK.

Or maybe they are and there's nothing new to report.

[Midtowner]

Or maybe they are and there's nothing new to report.

I don't think that's the case. With a company the size of CHK, there's always something new to report.

How about these angles:

Are we moving forward with Classen Curve?

Is the campus expansion going forward?

Human Interest: Ask ordinary employees at CHK how this has affected them.

I don't think it'd be difficult to do the above. I think the company and employees might be a little more tight-lipped about actual company operations, but why should all media inquiries be made to the public relations department?

[OUsp]

First time posting--but feel strongly about this issue. I, for one, am rooting for Chesapeake. This is an American company located in OKC--we need them to be successful for the local economy as well as our national interests. The management at Chesapeake is not stupid. I am sure they are having to refocus and adapt/modify previous business and operational strategies to fit the current economic outlook. The employees that I know from there are capable people. They are not talking too much about what they are doing because they are busy doing it.

[FFLady]

OK - where are we at with this??? I heard on the news last night that if Chesapeake "had" to sell, no one would buy because their debt is too high??? Is this what I heard?

[Pete]

Company takeover is unlikely
Chesapeake Official fights speculation
By The Associated Press
Published: October 18, 2008

With abundant assets and a depressed stock price, Chesapeake Energy Corp. would seem an attractive target for takeover, but company officials say a buyout is both unwelcome and unlikely.

"We’re a publicly traded company, so anything is possible,” Chesapeake Senior Vice President Thomas S. Price Jr. said Friday, though he called such a move unlikely. Price said the Oklahoma City-based company will continue to pursue partnerships with other corporations on projects.

Chesapeake has been hammered by low natural gas prices and the historic overall decline in equity markets. Its stock is trading at less than a third of its 52-week high.

State economy risk
A buyout would damage the state’s economy, which has lost many of its largest oil companies to Houston in recent years.

Chesapeake’s campus dominates some of the highest priced real estate in the city.

The success of Oklahoma’s oil and gas industry has allowed the state to largely avoid the economic downturn affecting the nation.

Justin Perucki, senior equity analyst with the Chicago-based Morningstar investment research company, said a buyout, although unlikely, is not out of the question.

"A hostile takeover obviously could be the case,” Perucki said. "Based on where stock prices are, I wouldn’t be surprised if someone tries it.”