Aubrey McClendon is Asking for More of Your Hard Earned Money. Is He Worth the Risk this Time Around?

The end of Aubrey McClendon's tenure at Chesapeake Energy (NYSE: CHK  ) wasn't exactly what you would call ideal, but the famous wildcatter is hoping to put that behind him as he looks to raise capital for his new limited partnership, American Energy Capital Partners. Recently, the company filed an S-1 form with the Securities and Exchange Commission, which, for those of us who do not speak "SEC", means the company will make an initial public offering. Between the $2 billion the company hopes to raise in this offering, and the $1.7 billion the company has already raised through debt and venture capital, Mr. McClendon will have a much bigger war chest to start than the $50,000 he started Chesapeake with. 

So what exactly does American Energy Capital Partners do? Is it something you should look into as an investor? Tune into the video below, where fool.com contributor Tyler Crowe breaks down this new company, and whether it should be on your radar or not.

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  • Report this Comment On December 22, 2013, at 4:33 PM, Thinkerbus wrote:

    Here we go again!. McLendon should be much smarter now, but still requires you to hold onto your britches---gets up-front permission for self dealing this go round. Hope he decides to share in the goodies, rather than lick the cream off the top for himself and his chronies.

    I will clearly pass on this with all its subconcious hype!.

  • Report this Comment On December 22, 2013, at 6:47 PM, ferdiefor wrote:

    There are too many talented CEOs at companies like EOG, Anadarko, etc. to waste getting involved with McLendon.

    Also, be very wary of McClendon's new partner who are the same folks that have brought you an overly acquisitive, over levered reit.

    McClendon deserves zero support. He hand picks his Board of directors and lets just say they swallow his DNA in return for rich directors' fees. How CHK's board could ever compensate him for losses on his CHK positions which he got in way over his head is beyond me. His board should have been thrown in jail... they didn't even begin to understand the meaning of the words corporate governance as it relates to shareholders; not the CEO.

    However, a future opportunity may exist with respect for any midstream assets he develops to support his E&P operations. I have to say I have made a small fortune in ACMP which was previously CHK's midstream ops that had to be sold off to raise money to pay down debt. He has an excellent grasp on developing very good midstream supporting assets and wouldn't mind if I could get some more if he does his usual thing and get in over his head. Although he may have learned a lesson and could choose to go in the direction of a Devon/Crosstex deal to have a mutually owned MLP become captive to the development of his necessary midstream assets.

  • Report this Comment On December 22, 2013, at 9:01 PM, GETRICHSLOW2 wrote:

    This guy is nothing but a crook. He will always make sure his personal gain comes before the investors. He has made that very clear by his past actions.

    I wouldn't trust him with a dime of my money.

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