Completely speculative but I would guess we end up with a 900-1000 employee local presence over the next few years that grows in the long term if natural gas prices can hold around $3.00 or go up. If LNG exports ever take off, CHK will be become more aggressive in upstream development and that growth increases.
Very glad to hear CHK is staying put, seems like best case scenario situation given all the possible outcomes last few years. It would be nice if this were actually adding enough jobs to make some sort of impact but it doesn't sound like that is the case. We are no longer dependent on O&G economically but it sure would be nice if we could get another little boom from the industry!
Why are they changing the name? Is there a bad association with it?
Just learned from an employee that they have been notified that all the OKC employees of the combined organization will be consolidated into Building 15.
Was told there is about 800 offices in there.
Will leave just a ton of excess buildings and land.
I posted this on this business thread because it related to the merger, but any discussion of the real estate should go here:
Chesapeake Empire Marches On
As shale matured, with covid really accelerating the process, they simply don’t need the head counts anymore. Industry wide.
The entire logic for this M&A was how closely intertwined their assets are. Even doubling the acreage, if both companies have 5 PEs, post acquisition it can be done with 7. Maybe even 6.
Maybe so. But I'll stick by my guesstimate of OKC gaining 200-250. $400M in "synergies" won't all be from G&A cuts, obviously. It'll come from a combination of G&A, capital/operational efficiencies, supply chain, etc. With a little BS mixed in there too. In my opinion, laying off half of SWN's current workforce is unlikely. That would be massive. That said, I agree there will some level of layoffs both places, unquestionably. Having been a Director at CHK for a number of years, and going through 5 layoff cycles in 6 years and having to make those decisions...ugh. I hope someday this all stops and it can become--to the extent O&G upstream can be--more stable for everyone. It's been an unprecedented 10 year run of constant cuts.
I feel like this is big news but I admit I know very little about the industry
https://www.prnewswire.com/news-rele...302060317.html
This deal had to have been finalized prior to LNG export terminal permit freeze by the administration 2 or 3 weeks ago. I wonder if that will effect this deal or any others that were in the works.
More of an event 5-10 years down the road. There's still plenty that have been permitted that will start construction. Plus if an admin change occurs in November it's quickly reversed.
80 employees laid off today.
https://www.koco.com/article/chesape...oyees/60858232
This was a planned reduction as part of their merger and the sale of their final oil producing properties. They are now the largest nat gas producer.
Any word on the plans for the main campus buildings that will be emptied when they get all moved into the one building?
Any other local companies needing newer/upgraded space that could swoop in and fill the space? I know of one that could use it but not sure they would ever spend the money.
I just saw a building permit application to start reconfiguration Building 15 so the entire organization can be consolidated there.
But that is going to take a year or so to get everyone moved in from the various other buildings. From there, I suppose they'll get serious about what's next for the rest of the campus.
I have a friend that has survived every single layoff here since 2010 and I find that absolutely incredible.
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