McClendon, Ward drop off Forbes billionaire list

[metro]

OKCBiz > Two Oklahoma City men drop off Forbes billionaire list

Two Oklahoma City men drop off Forbes billionaire list
OKC Biz
3.12.2009

Forbes Magazine listed four Oklahomans to its World Billionaire list which was posted to its site today.

Of the six state men who were listed as billionaires in the Sept. 2008 400 Richest Americans list, only four remained on the World’s Billionaires list.

Oklahoma City’s Harold Hamm, who owns Enid-based Continental Resources, led the list with an estimated $3.5 billion and a 164th ranking while Hobby Lobby’s David Green made the list at No. 647 with a $1.1 billion estimated worth.

Tulsa’s George Kaiser topped the state men in the list at No. 43 with $9 billion worth while Lynn Schusterman made the list with $1.2 billion worth at No. 601. Both men are in the oil-and-gas industry.

In 2006, Aubrey McClendon and Tom Ward were co-listed at number 215 with a $1.6 billion net worth in the Richest Americans’ list. Last September, Chesapeake’s Aubrey McClendon ranked 134th with $3 billion net worth. Tom L. Ward made the list at No. 155 with a $2.7 billion net worth. Both men are among the owners of the National Basketball Association’s Oklahoma City Thunder franchise.

However, neither one made the billionaire list. Overall, there were 793 world billionaires, down from 1,125 listed the previous year.

In October, McClendon was forced to sell his company stock. Because of margin loan calls, McClendon involuntarily sold substantially all of his common-stock shares. A margin loan call would take place because the purchaser would have used securities as credit to buy shares. Once the stock declines to a certain price, the buyer would have to sell back the shares. In early July, Chesapeake Energy’s stock priced out at $69. Aug. 27, the price was $50. The stock traded at $20 per share in October.

In January, SandRidge Energy announced its Ward sold 8.9 million common-stock shares in a privately negotiated transaction. After the transaction, Ward owned 29.05 million shares which equates to about 17.5 percent.

“This was necessary for debt service and tax planning needs. Although I am disappointed to sell shares at this price, I am pleased to have completed a negotiated private transaction with such a highly regarded investor rather than an open-market sale,” Ward said in a statement. “I continue to have the highest regard for our company and the assets we hold.”

Kaiser purchased the shares, according to company officials, for $50 million. As part of the agreement, Kaiser could sell back the shares to Ward for the same price. In a related transaction, the Kaiser-Francis Charitable Income Trust C amended existing rights and restated the rights to be five-year warrants to purchase 6.67 million shares from Ward subject to certain adjustments.

[grantgeneral78]

It just reflects how bad the economy is, they are down also. Just not as bad as the rest of us.

[Midtowner]

In Oklahoma, most of us are not 'down.' I hate how perception sometimes drives the market rather than actual facts.

Let's look at facts.

Our unemployment rate is one of the best [lowest] in the nation, sitting at around 4%, around half the national average.

Companies are hiring right now, not firing. There have been few, if any, major layoffs recently.

The only big store closings have had more to do with national trends affecting national chains rather than local shops closing due to local conditions.

Our housing market has not dropped off in any significant way. While real estate prices are a bit stagnant, they're holding steady.

Could things get bad in the near future? Sure. It's just not here yet. Sad to see a couple of billionaires reduced to rank-and-file millionaires, but that's just a reflection of their poor, i.e., 'eggs all in one basket' investment strategies and a poor reflector of the local economy as a whole.

[OKCTalker]

+1

in oklahoma, most of us are not 'down.' i hate how perception sometimes drives the market rather than actual facts.

Let's look at facts.

Our unemployment rate is one of the best [lowest] in the nation, sitting at around 4%, around half the national average.

Companies are hiring right now, not firing. There have been few, if any, major layoffs recently.

The only big store closings have had more to do with national trends than local ones.

Our housing market has not dropped off in any significant way. While real estate prices are a bit stagnant, they're holding steady.

Could things get bad in the near future? Sure. It's just not here yet. Sad to see a couple of billionaires reduced to rank-and-file millionaires, but that's just a reflection of their poor, i.e., 'eggs all in one basket' investment strategies and a poor reflector of the local economy as a whole.

[OU Adonis]

Not completely true. I got laid off and I am now making 1/2 of what I was before. CHK got rid of a lot of contract labor. It doesn't make the news because they aren't technically employees. But they feel the pinch the same.

[Midtowner]

CHK is kind of an outlier though. They were pretty reckless with their money, particularly in what they were paying for leases. What happened was a pretty foreseeable consequence of their actions. So much so that that sort of conduct is now mentioned in a few derivative suits.

The point is, that with or without the economy at large, with gas prices being what they are right now, CHK would still be in the crapper.

[grantgeneral78]

Our residential busines is completly shut down from all the builders using the illegals at a cheaper price to build there houses, I might I add to not as good of quality. I know of numerous people out of work because of this problem. Until the second half of house bill 1804 finally gets out of the supreme court there is not a light at the end of the tunnel for these crews.

[okcpulse]

But were they REALLY Billionaires to begin with? Maybe my standards are stringent, but being "valued" as a billionaire doesn't necessarily mean that you are. I prefer to see physical, tangible cash sitting in the bank under my name before I am EVER considered a true billionaire.

I bet half the people on the Forbes list aren't even true billionaires.

[soonerguru]

Great posts by Midtowner and okcpulse.

[andy157]

I wonder what the final results of A.Mc. wine auctions were, anybody hear?

[metro]

But were they REALLY Billionaires to begin with? Maybe my standards are stringent, but being "valued" as a billionaire doesn't necessarily mean that you are. I prefer to see physical, tangible cash sitting in the bank under my name before I am EVER considered a true billionaire.

I bet half the people on the Forbes list aren't even true billionaires.

Thus why about 450 people dropped off the Forbes billionaire list. I'm guessing the remaining billionaires have at least a billion in cash or are in industries making a profit right now.

[Steve]

GrantGeneral, you should contact me and let's talk more about a potential story about house building, illegal help and related issues.

[grantgeneral78]

GrantGeneral, you should contact me and let's talk more about a potential story about house building, illegal help and related issues.

I would be happy to, I will send you a PM.