Chesapeake Business Practices

[warreng88]

Yes, absolutely there is a big difference between industries.

At any large bank, there are literally hundreds -- and sometimes thousands -- of people with VP in their title.


In the end, it's just a title that means very little.

At a bank I worked at in NWOKC, there were 75 people. There was One President and CEO, One Executive VP over Operations, One Chief Lending Officer and SVP, Four SVP (three were loan officers and one was the head of the credit department), 15 VP's (ten loan officers, one customer service, two in operations and two in new accounts) and about 5 AVP's. So, with 75 people, 22 or 29% had a title of VP or higher. The rest were us minions...

[adaniel]

Just my best guess, but in an energy company, VPs are usually in charge of some department over a specific geographic region or major play. So a VP of Land at Chesapeake may be over a big area (ex: Cana Play or Granite Wash in OK), and under them would be junior landmen, land techs, division order analysts, and the like.

[Plutonic Panda]

''Executive Positions Cut At Chesapeake Energy

Posted: Sep 10, 2013 12:12 PM CDT
Updated: Sep 10, 2013 1:56 PM CDT
By News9.com - email


OKLAHOMA CITY - Oklahoma City-based Chesapeake Energy has made another round of personnel cuts, as part of an ongoing effort to right-size the company.
Sources told News 9 that numerous high level employees – vice presidents – were informed today that their positions had been cut. A statement from Chesapeake confirms that it is "transitioning key leadership positions and making adjustments to its organization to properly align resources, reduce expenses, and improve its operating and competitive performance."

The company would not reveal the exact number of positions cut. Chesapeake currently employs 12,000 people in more than a dozen states.

Last month, the company announced the departures of several of the executive V.P.s who had served for years under co-founder and former CEO Aubrey McClendon, who left Chesapeake in April.

In an email to all employees this afternoon, current CEO Doug Lawler said these moves support the company's "new strategies of financial discipline and profitable and efficient growth from captured resources."

Lawler went on to say, "We are confident this structure will help Chesapeake successfully achieve our goal of becoming a top performing E&P company."

Additionally, Lawler told employees that more organizational changes should be anticipated in the coming weeks.

Here is the entire statement from Chesapeake regarding its latest personnel moves:

"Chesapeake is transitioning key leadership positions and making adjustments to its organization to properly align resources, reduce expenses, and improve its operating and competitive performance. The company's focus remains on financial discipline and profitable and efficient growth from captured resources. We look forward to realizing Chesapeake's full potential for our shareholders and employees."

- Executive Positions Cut At Chesapeake Energy - News9.com - Oklahoma City, OK - News, Weather, Video and Sports |

[Pete]

Lawler told employees that more organizational changes should be anticipated in the coming weeks.

Ugh.

Waiting / not knowing is so hard... Wonder why they are dragging this out.

[PhiAlpha]

Just my best guess, but in an energy company, VPs are usually in charge of some department over a specific geographic region or major play. So a VP of Land at Chesapeake may be over a big area (ex: Cana Play or Granite Wash in OK), and under them would be junior landmen, land techs, division order analysts, and the like.

It's set up differently everywhere, it just depends on the company. CHK's Land VP's and SVPs usually had pretty high level responsibilities over regions with a lot of people under them (From what I remember, in Land at CHK, it went - SVP (Henry Hood) - Regional VPs (several) - Division Managers - Land Supervisors - District Landmen, that may not be exactly right but it was something like that). My company had SVPs, VPs, AVPs, and Managers. The SVPs were the only ones whose responsibilities were fundamentally different. VP, AVP, and Manager were basically interchangeable terms, as far as responsibility (departments, employees, etc), with different salaries and financial approval levels for each higher designation.

[bradh]

another round coming today, this time at the level below the VP's cut yesterday.

probably drags out because they're trying to make sure they don't cut everyone and then have operations left out there that no one knows what the hell is going on

[Libbymin]

another round coming today, this time at the level below the VP's cut yesterday.

probably drags out because they're trying to make sure they don't cut everyone and then have operations left out there that no one knows what the hell is going on

That's gotta be agony if you're in the lower level positions waiting to get the axe.

[BG918]

The people I know there are actively looking at other options, both in OKC and other energy cities. They say it is looking pretty grim and the not knowing what/who is next is the hardest part.

[Pete]

At least Continental, Devon, Enable Midstream and other local energy companies are in expansion mode.

[bradh]

Most folks I know at CHK have had feelers out for almost a year

[Richard at Remax]

3 chaplains and a beekeeper got let go today. A beekeeper. SMH.

[Pete]

3 chaplains and a beekeeper got let go today. A beekeeper. SMH.

Seriously??

Of course, they were employing grocery store managers as well.

[Richard at Remax]

Exactly. I think we are seeing that there is a lot more fat to trim there than we think. Hell, they probably have more cooks that your average small business.

[Pete]

Where did you hear this about the beekeeper??

[Richard at Remax]

Wife works there. So while I make sure she still has her job, I ask her what layoffs did happen that day. I guess word spreads fast

[Pete]

I see.

I did find in an article about Aubrey they mentioned a beekeeper as part of their landscaping department.

And THREE chaplains??


At some point, the great excesses of this company and the way it was operated will make a great book.

[Libbymin]

Most folks I know at CHK have had feelers out for almost a year

This is true. I have friends who used to work there who decided not to wait around and went ahead and looked for other jobs. That and the fact that they were getting bored being pigeon-holed into doing a smaller scope of responsibilities (a common problem heard among employees there).

[betts]

I like the idea of a beekeeper though. We need to do everything we can to keep our honeybees alive and well. The Waldorf Astoria and other big hotels in NYC keep bees on the roof. Off topic, but I was thrilled to see a hummingbird on the flowers in front of my house and a toad in my front flower bed. I've had honeybees on the flowers all summer. Downtown wildlife. We're pesticide free and enjoying the results.

[jn1780]

Well we know all the campus security officers jobs are safe for a few months. Someone has to walk all future layoffs off campus.

[PWitty]

This is true. I have friends who used to work there who decided not to wait around and went ahead and looked for other jobs. That and the fact that they were getting bored being pigeon-holed into doing a smaller scope of responsibilities (a common problem heard among employees there).

What departments were your friends in? From the people I know in the engineering department, it's totally opposite. They all told me the reason they came to CHK from other majors or large independents is because at CHK they are able to have their hand in everything and be a part of the entire well's life cycle, and at the larger companies they were getting stuck replicating the same small piece of the larger design over and over.

Also, DL gave a presentation in NY today at the Barclays Conference and outlined where he sees the company going and how they can cut costs. There was one slide in particular that showed their overall capex per year and broke it down into Drilling & Completions, Land, and Other. He repeatedly pointed out how from 2010-2012 only ~50% of their spending was actually on drilling and completions, while the rest was on Land and Other. One year the Land budget was even more than the Drilling and Completions budget, which is crazy for an E&P company.

[warreng88]

I would be curious to know if any of the people working at the restaurants or the sea of personal trainers at the fitness center will get the boot? I went to the fitness center about 3-4 times a week and there was one receptionist and at least five others there on some level all the time, Monday through Friday, 5:00am to 8:00pm, 8-4 on Saturday and 1-5 on Sunday. As nice as it was to have them there, it was a little overkill.

[Libbymin]

What departments were your friends in? From the people I know in the engineering department, it's totally opposite. They all told me the reason they came to CHK from other majors or large independents is because at CHK they are able to have their hand in everything and be a part of the entire well's life cycle, and at the larger companies they were getting stuck replicating the same small piece of the larger design over and over.

Also, DL gave a presentation in NY today at the Barclays Conference and outlined where he sees the company going and how they can cut costs. There was one slide in particular that showed their overall capex per year and broke it down into Drilling & Completions, Land, and Other. He repeatedly pointed out how from 2010-2012 only ~50% of their spending was actually on drilling and completions, while the rest was on Land and Other. One year the Land budget was even more than the Drilling and Completions budget, which is crazy for an E&P company.

I think any of the science-based departments are pretty good places to be (engineering, geology, geoscience, etc). But in the Land Dept and in particular, the Land Admin Dept, you find a lot of people specializing in particular duties of a landman. Whereas, in a smaller O&G company, a landman does a little bit of everything. Over the years there are good people that have left CHK for that very reason.

[PhiAlpha]

I think any of the science-based departments are pretty good places to be (engineering, geology, geoscience, etc). But in the Land Dept and in particular, the Land Admin Dept, you find a lot of people specializing in particular duties of a landman. Whereas, in a smaller O&G company, a landman does a little bit of everything. Over the years there are good people that have left CHK for that very reason.

Yep...agree, same thing I've seen.

[PWitty]

Yep...agree, same thing I've seen.

That's interesting. The only people I know are in engineering or geology so I guess I just assumed it was the same across the board.

[Libbymin]

OK I have to ask. Chesapeake really employed a beekeeper? Seriously?