Energy / Hydraulic Fracturing

Ex-Chesapeake CEO seeks investors for oil, gas drilling

Aubrey McClendon will serve as a manager for American Energy Capital Partners LP.

Aubrey McClendon will serve as a manager for American Energy Capital Partners LP.

COLUMBUS — “A new company with ties to energy investor Aubrey McClendon is selling shares to raise money for oil and gas drilling, just a few weeks after a McClendon-related venture received its first drilling permits in Ohio.

American Energy Capital Partners LP plans to raise as much as $2 billion by selling units for $20 each, according to a filing with the U.S. Securities and Exchange Commission on Friday.

…Despite similar names, American Energy Capital Partners, based in New York, is separate from American Energy Partners, the Oklahoma City, Okla., company of which McClendon is chairman and CEO.

The filing has a long list of risks for prospective investors, including: ‘We have no prior operating history and no established financing sources, and this is the first oil and gas program sponsored by our general partner and its affiliates.'”

— Dan Gearino, Columbus Dispatch

link to article

You’d be crazy to invest in Aubrey McClendon’s new IPO

NEW YORK, NY — “American Energy Capital Partners LP is not about to be the launching pad for a kind of Chesapeake Energy 2.0. Yes, McClendon will serve as manager of the partnership, picking and choosing the oil and gas properties that it will invest in.

But there are so many uncertainties and potential conflicts of interest between McClendon and the partnership that any investor would have to be crazy or naive put his money into this thing.

First of all, this is a blind pool investment. The partnership currently has no assets, and won’t until it raises enough money. There’s plenty of high-risk oil and gas plays out there where you at least know what part of the country you’re rolling the dice on. In this partnership the only thing you’re betting on is McClendon.”

— Christopher Helman, Forbes

link to article