One Less Billionaire...

[blangtang]

Where do we go from here?

[kevinpate]

up, same as before, with periodic bits of leveling out and downhills. A lot like taking a bike ride in eastern Oklahoma actually.

[Luke]

up, same as before, with periodic bits of leveling out and downhills. A lot like taking a bike ride in eastern Oklahoma actually.

I love me some eastern Oklahoma...

[metro]

I assume your talking about Aubrey McClendon here. Who says he is still not one? Stock prices fluctuate too often anyways. Plus we don't know how much cash he has on hand and other investments (i.e. real estate).

[bombermwc]

And why do we think he isn't? He had to sell stock, so that's a crapload of cash he has in his pocket now....it's just not invested.

[OKCTalker]

Aubrey isn't out: He is smart, knowledgeable of an industry that the world is dependent upon and has tremendous reserves, and controls a global powerhouse of a company that can find, produce and bring them to market. I also add two advantages: They have too much debt and have a reputation for paying too much. If AKM & CHK can pay down some debt and get costs under control, then they'll both be back in no time.

[Pete]

In the Forbes 400 list released in September, McClendon's net worth was estimated at $3 billion.

By his own admission, he was forced to sell virtually all of his Chesapeake shares, 33 million. At the stock's peak, that represents about $2.5 billion. I assume that the proceeds from the sale of all those shares where required to pay off the money borrowed to buy them, otherwise he wouldn't have been forced to sell. I wouldn't be surprised if he netted almost nothing from the sale.

So, it's very possible he no longer is a billionaire. I know he owns a lot of property around town but more than likely he's borrowed heavily there too... Hard to believe he would pay cash for real estate when he was financing the stock purchases.

I remain very concerned about the tens of thousands of acres he owns as well as all the property purchased by Chesapeake. I'm not sure either will be able to continue to hold, let alone develop, these assets.

And I really fear all those scars at 63rd & Western -- caused by the scraping of multiple buildings and businesses -- may remain for a while.

[old okie]

I remain very concerned about the tens of thousands of acres he owns as well as all the property purchased by Chesapeake. I'm not sure either will be able to continue to hold, let alone develop, these assets.

And I really fear all those scars at 63rd & Western -- caused by the scraping of multiple buildings and businesses -- may remain for a while.

I think this is an excellent point...and I agree completely. What happens when no more can be "completed"? Will we be left with abandoned buildings?

[OKCTalker]

Perhaps this should be another thread - Chesapeake Construction - but I'll let it fly here. I noticed this morning that almost no construction activity was underway on campus. No streets were blocked with contractors or equipment, and all but one of the campus cranes were idle (the exception being at the east end of their parking garage at 63rd & Francis). Even in a worst-case scenario, I'd think that they'd finish their own buildings before shutting down construction, even if it was just the exteriors.

[Pete]

I'm sure they'll finish the projects underway, but they had much more planned and had ton down a bunch of structures and chased off a lot of businesses.

Even if they finish the couple of of structures underway, big patches in that area are abandoned and may stay that way for quite a while.

This was a fear I specifically raised some time ago, that they were taking out a lot and only adding back private structures. Classen Curve would be the exception, if that continues forward.

[metro]

OKCTalker, there is a Chesapeake construction thread.

[soonerguru]

Pete,

Great comments. The city let Aubrey run wild up there and now he has pierced the heart of a once-thriving retail district. It reminds me of a post-modern, mini "urban renewal" job.

[OKCTalker]

OKCTalker, there is a Chesapeake construction thread.

Metro - Thanks. Today is my first time on OKC Talk. Nice place you have here!

[Kerry]

In the Forbes 400 list released in September, McClendon's net worth was estimated at $3 billion.

By his own admission, he was forced to sell virtually all of his Chesapeake shares, 33 million. At the stock's peak, that represents about $2.5 billion. I assume that the proceeds from the sale of all those shares where required to pay off the money borrowed to buy them, otherwise he wouldn't have been forced to sell. I wouldn't be surprised if he netted almost nothing from the sale.

So, it's very possible he no longer is a billionaire. I know he owns a lot of property around town but more than likely he's borrowed heavily there too... Hard to believe he would pay cash for real estate when he was financing the stock purchases.

I remain very concerned about the tens of thousands of acres he owns as well as all the property purchased by Chesapeake. I'm not sure either will be able to continue to hold, let alone develop, these assets.

And I really fear all those scars at 63rd & Western -- caused by the scraping of multiple buildings and businesses -- may remain for a while.

If he owned $2.5 billion in stock and owed money on the loan to buy the stock it would be factored in to his NET WORTH of $3 Billion. His gross worth was not $3 billion, his net worth was. I am sure he is still in the +$1 Billion crowd.

[metro]

Metro - Thanks. Today is my first time on OKC Talk. Nice place you have here!

How's that, it says you've been a member for a year with 142 posts.

[jbrown84]

Metro, you might want to take your sarcasm meter into the shop...

[OKCTalker]

Metro - Is he new too?

[Pete]

If he owned $2.5 billion in stock and owed money on the loan to buy the stock it would be factored in to his NET WORTH of $3 Billion. His gross worth was not $3 billion, his net worth was. I am sure he is still in the +$1 Billion crowd.

Could be but why didn't he hustle up to borrow against his (presumably) $1+ billion net worth to cover his margins and thus not lose a couple of billion? Especially since his sales were embarrassing to him and the company?

The stock has been dropping for a while and he had plenty of time to raise funds to cover his margins so he wouldn't be forced to sell. If he has a billion in net assets independent of the stock he just sold, why wouldn't he borrow against that?

I know he's heavily into hedge funds (recent article about this) and I'm sure those have really taken a beating as well.

His recent actions are the greatest indicator of his financial position.

[OUGrad05]

Could be but why didn't he hustle up to borrow against his (presumably) $1+ billion net worth to cover his margins and thus not lose a couple of billion? Especially since his sales were embarrassing to him and the company?

The stock has been dropping for a while and he had plenty of time to raise funds to cover his margins so he wouldn't be forced to sell. If he has a billion in net assets independent of the stock he just sold, why wouldn't he borrow against that?

I know he's heavily into hedge funds (recent article about this) and I'm sure those have really taken a beating as well.

His recent actions are the greatest indicator of his financial position.

thats correct from what I understand most of his networth was tied up in stock which tanked...I believe the forbes rankings were compiled in June were they not? Where was the stock? Where is it now? He bought on margin...he's probably worth about 500M now.

[Midtowner]

Metro - Thanks. Today is my first time on OKC Talk. Nice place you have here!

Trans:

Thanks for telling me where I should have posted this. You are not a moderator, please don't tell me where to post things. I know what I'm doing and I meant to post here.

-- sarc. translation provided gratis.

[betts]

Perhaps this should be another thread - Chesapeake Construction - but I'll let it fly here. I noticed this morning that almost no construction activity was underway on campus. No streets were blocked with contractors or equipment, and all but one of the campus cranes were idle (the exception being at the east end of their parking garage at 63rd & Francis). Even in a worst-case scenario, I'd think that they'd finish their own buildings before shutting down construction, even if it was just the exteriors.

Crappy weather. Contractors look at the sky and quit if the sun isn't shining and it looks like rain. They've been working on both the campus and Classen Curve since the stock sell off was announced.

[blangtang]

yes this was just speculation on my part...

saw the 2-3 bill net worth figure from forbes

saw the 33 mill shares sold times upper 60 share price=close to 2 billion sum...lost! , then saw the margin call, etc. I figured roughly 33 million shares times ~70 is low 2 point something billion, so thats why i made the thread.

the credit crunch has crunched most credit mclendon had.

what a shame

[wsucougz]

deleted

[kellyc]

I wonder if this would be a good time for OG&E to try to build that new power plant?