The Enid News and Eagle, Enid, OK

Opinion

Related Photos

  • Chesapeake McClendon_Hass.jpg Chesapeake Energy Corp. CEO Aubrey McClendon (AP Photo, File)

    Chesapeake McClendon_Hass.jpg

Discussion

February 1, 2013

Aubrey McClendon’s ouster from Chesapeake cautionary tale for the energy industry

Enid News & Eagle

ENID, Okla. — To anyone closely following the Oklahoma energy industry, the announcement of Chesapeake Energy Corp. founder and CEO Aubrey McClendon’s pending departure from the company comes as no surprise.

The embattled executive will step down April 1 even though Chesapeake says a review of his business dealings has not revealed improper conduct, The Associated Press reports. It’s no April Fools’ Day joke.

McClendon, 53, founded the company 24 years ago and pushed it to acquire drilling rights to huge amounts of land. The strategy landed the company promising assets — and enormous debt as natural gas prices plunged.

A plan that allowed McClendon to invest personally in the company’s wells came under renewed scrutiny last year, and he was forced to step aside as board chairman.

McClendon, a visionary known for his wildcatter’s mentality, is a larger-than-life figure in Oklahoma City, where the company has greatly expanded.

You’ve seen him sitting courtside with Oklahoma City Thunder Chairman Clayton Bennett. In fact, McClendon reportedly owns 19.2 percent of the NBA franchise. Reuters reported a source claiming Chesapeake’s relationship with the Thunder wouldn’t change.

McClendon made headlines turning OKC into a “Big League City,” luring the first Whole Foods Market to the metro and improving quality of life.

Many in Oklahoma City and throughout the state were questioning the future of McClendon at Chesapeake. As the company moved forward with changes in compensation and corporate governance, nonprofits wondered how charitable spending would be affected.

McClendon’s ouster serves as a cautionary tale for Oklahoma’s energy industry. We should scrutinize highly leveraged growth strategies in the future.

Company executives shouldn’t let the good times lull them into questionable judgment.

Text Only
Opinion
Featured Ads
AP Video
Officials: Truck Hit Bridge Before Collapse Sheriff: No Sign Killing of 2 Kids Was Planned Obama Defends Drone Strikes, With Limits Raw: Jurors Deadlock on Jodi Arias Penalty Boy Scouts Decision "First Step" Say Activists Raw: Utah Teen Arrested in Death of His Brothers Closer Look at Okla. School Where Children Died Two Suspects in Murder Known to London Police Boy Scouts Mom Supports Gay Inclusiveness "Be Ready": NOAA Warns of Busy Hurricane Season SeaWorld: Penguins Are Coolest Thing in Florida Obama Renews Call to Close Gitmo Obama Offers Drone Strike Defense Raw: Heckler Interrupts Obama on Guantanamo A Slice of Apple History Up for Grabs
NDN Video
AK-47-wielding thug may be the most bumbling crook ever Oklahoma Survivors, Heroes Survey Damage Trout's cycle a boost for Angels Raw: New Video of Deadly Oklahoma Tornado Kim Kardashian Flaunts Pregnant Bikini Body in Greece NBA star pledges $1M to help tornado recovery Shakira's Shocking Talent Morgan Freeman falls asleep on air GRAPHIC: Blood-Soaked Machete Killer Caught on Tape Elin Nordegren Furious With Lindsey Vonn For Parading Kids in Public Camera Captures Climber As He Loses Grip And Falls Helen Mirren Meets with Dying Boy in Queen Elizabeth's Place Crowd Chants '¡Si, Se Puede!' After Passage of Immigration Bill DWTS Crowns a Winner Police Ram House to End Hostage Standoff Demi Moore a Rocks Bikini at Harry Morton's Family House Anthony Weiner: I'm running for New York City mayor Kate Middleton's Dress Flies Up VIRAL: Baby makes epic soccer goal The Hangover Baby All Grown Up
Seasonal Content
House Ads