Chesapeake Business Practices

[PhiAlpha]

Can we expect a name change to "Anadarko" if not a move to Houston?

Is that a serious question?

[UnclePete]

Just curious. What other former Oklahoma companies have moved to Houston?

Is that a serious question?

[PhiAlpha]

A lot 30 years ago. Very few since. It wouldn't make any sense to relocate them to Houston anyway. The only way that would happen is by someone purchasing them and even if that happened, there it's more likely that they stay here than move. There was an article the other day on NewsOK about how mergers are becoming much less appealing to large companies due to all the recent shareholder revolts.

[Garin]

The campus could always be used for public housing if something ever happened to them.

[Antler dad]

The campus could always be used for public housing if something ever happened to them.

Sure! That would be an equal trade! Thousands of jobs for public housing. I haven't read many of your posts but this one and your "tort reform would help" with health care costs suggest a talking points/ non-reality view point

[Garin]

Sure! That would be an equal trade! Thousands of jobs for public housing. I haven't read many of your posts but this one and your "tort reform would help" with health care costs suggest a talking points/ non-reality view point

Why would tort reform not help? Do you at least agree with cures solving the problem?

[betts]

Actually tort reform could have helped with health care costs, but its probably too late. An entire generation of doctors has "grown up" with lawsuit phobia, and an entire generation of people has grown up thinking if something bad happens, you might be able to get a big pot of money out of it. So now we over order every test, admit people to the hospital who aren't that sick, and generally practice CYA medicine.

As far as Chesapeake becoming low income housing, I suspect that was tongue in cheek. If the good folk of Nichols Hills could stop Whole Foods from being built in Nichols Hills Plaza ( an incredibly short-sighted move on their part), I can only imagine the kind of uproar that would generate.

[king183]

Just heard from a friend at Chesapeake in a department that would be at the forefront of these developments that the latest rumor circulating up there is 1500 layoffs are imminent.

That seems like a mighty high number to me. Even if it is an exaggerated number, rumors like that must be hell on morale.

[Bunty]

Just heard from a friend at Chesapeake in a department that would be at the forefront of these developments that the latest rumor circulating up there is 1500 layoffs are imminent.

That seems like a mighty high number to me. Even if it is an exaggerated number, rumors like that must be hell on morale.

Hard to believe that with the price of oil going over $100 a barrel.

[adaniel]

Just heard from a friend at Chesapeake in a department that would be at the forefront of these developments that the latest rumor circulating up there is 1500 layoffs are imminent.

That seems like a mighty high number to me. Even if it is an exaggerated number, rumors like that must be hell on morale.

Heard the same thing although that is likely companywide.

[pw405]

Accordng to the rumors at thelayoff.com, layoffs will start this week and are scheduled to be complete by 9/20. Once again.. No official confirmation on this, but somebody is claiming HR stayed all weekend preparing the paperwork to get the process started.

[Pete]

Layoffs usually happen on Fridays.

Don't be surprised if this process starts tomorrow.

[bradh]

I had heard from land department guys they weren't supposed to start until October.

I know a bunch of marketing/PR types have already been let go, like 50 or so, but that was like 2 weeks ago.

[onthestrip]

I had heard from land department guys they weren't supposed to start until October.

I know a bunch of marketing/PR types have already been let go, like 50 or so, but that was like 2 weeks ago.

This is what I was told by a CHK employee.

[adaniel]

No reason to drag this out. CHK should just rip the bandaid off, give these folks their severance packages, and let them get on with their lives.

[Pete]

They may want to take the severance write-offs in the last quarter, which starts Oct. 1.

They've strung together some nice results under the new CEO and they may want to get one more good quarter under their belts.

Layoffs are very expensive in the short-term.

[Bellaboo]

When Hertz did their layoffs in 2008, They had them monthly from May 9th until Sep 30th.

[Libbymin]

Hard to believe that with the price of oil going over $100 a barrel.

With the asset sales they've done and their strategy to get out of certain plays, it's only logical that layoffs are occurring soon. The question is how many. Honestly, I'm not sure why they've waited so long already to do this.

[PWitty]

I'll add that from what I have heard CHK is still actively hiring engineers, so I would assume these layoffs are localized to certain departments and not a company wide downsizing.

[ou48A]

They may want to take the severance write-offs in the last quarter, which starts Oct. 1.

They've strung together some nice results under the new CEO and they may want to get one more good quarter under their belts.

Layoffs are very expensive in the short-term.

From my observations October is not an unusual time of the year for layoffs.

[ou48A]

I'll add that from what I have heard CHK is still actively hiring engineers, so I would assume these layoffs are localized to certain departments and not a company wide downsizing.

Engineers are in such high demand that hiring them should be a priority even if there isn’t if there isn't a lot of work for them right now.

[Garin]

They just aren't buying anymore land so no need for the landmen

[Libbymin]

Generally speaking, I think the geologists, geophysicists, and engineers are pretty safe. The Land department not so much.

[PhiAlpha]

They just aren't buying anymore land so no need for the landmen

Still need landmen and a lot of them if they are drilling a lot of wells. Landmen do nearly all the title, curative, and regulatory prep work for wells. All surface damage and right of way work. The majority of communications with partners when drilling wells or really for anything. Communications with land owners, lease maintenance, any small scale leasing they might do, and a slew of other random things. They just don't need the factory of title landmen or as many in-house landmen now that they are doing a ton of large scale leasing.

[Libbymin]

Still need landmen and a lot of them if they are drilling a lot of wells. Landmen do nearly all the title, curative, and regulatory prep work for wells. All surface damage and right of way work. The majority of communications with partners when drilling wells or really for anything. Communications with land owners, lease maintenance, any small scale leasing they might do, and a slew of other random things. They just don't need the factory of title landmen or as many in-house landmen now that they are doing a ton of large scale leasing.

That's just it though. A friend of mine who used to work there said they went from running 160 rigs a year to about 68 now. That's a lot of Land people that you don't need anymore.