Ex-Chesapeake CEO Near Deal For Enduring Resources - Sources
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[May 10, 2014]
By Mike Stone
(Reuters) - Former Chesapeake Energy
Corp <CHK.N> CEO Aubrey McClendon is leading an investor group set
to buy Enduring Resources LLC in a deal that could value the oil and
natural gas producer at more than $2 billion, people familiar with
the matter said on Friday.
McClendon, who was a major figure in the U.S. energy industry before
being ousted from Chesapeake last year in the aftermath of a
governance scandal and liquidity crisis, remains a prominent shale
dealmaker who has amassed wells and leaseholds in the Utica.
Denver, Colorado-headquartered Enduring Resources is partly owned by
buyout firm EnCap Investments LP and has oil and gas producing
operations in Utah and West Texas. The company has been working
alongside Jefferies on its sale, the people said.
The sources cautioned that the deal had not yet been finalized and
asked not to be named because the talks are confidential.
Spokespeople for Enduring Resources and EnCap declined to comment,
while a McClendon spokesman did not immediately respond to a request
One of the people said private equity firm Energy & Minerals Group
(EMG) is one of the investors alongside McClendon. EMG's majority
owner John Raymond is the lead equity investor in another McClendon
venture. A spokesperson for EMG did not immediately respond to a
request for comment.
Enduring Resources has drilling operations in West Texas and is
amassing acreage in the expanding Delaware section of the Permian
Basin, according to the company's website.
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McClendon co-founded Chesapeake in 1989 and the company went on to
become the No. 2 U.S. natural gas producer. He left his CEO post in
April 2013 following clashes over spending with the company's board
and a series of Reuters investigations that led to civil and
criminal probes at the company. [ID:nL2N0LB21X]
(Reporting by Mike Stone; Editing by David Gregorio)
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