Harry Johnson

Harry Johnson
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  • New Chesapeake Energy (CHK) CEO Doug Lawler will make more than $22M in 2013 - a cash salary of $1.25M plus a signing bonus, stock awards and other perks - according to an SEC filing. Predecessor Aubrey McClendon's 2012 compensation package totaled $16.9M, with a $975K cash salary.  [View news story]
    The most productive actions I ever took in an oil company I founded was to (1) fire my "executive search firm" CFO and replace him with a CPA who had been with me ten years before I succumbed to conventional wisdom and went outside the company for an executive, and (2) terminate five department managers and promote their assistants to their positions without giving them an immediate raise. In the following six months, we solved all of the problems we had struggled with for the preceding two years at considerably less cost.

    Following conventional wisdom will always generate the most cheers, but it seldom solves the problems. It is perfectly asinine to pretend that there was no one in the CHK fold who could assume the mantle of CEO. I am sure there are just as many good managers working for CHK as there were in the old Standard Oil Trust. When that was broken up into 35 companies and 35 of John D's managers were turned loose in the industry, Rockfeller's fortune skyrocketed. Every young turk at CHK that is worth his salt has been insulted if not demoralized.
    May 23, 2013. 08:49 PM | 2 Likes Like |Link to Comment
  • Why Chesapeake's New CEO Makes It A Better Long  [View article]
    " Their (engineers) outlook in general, because of the training they undergo, make them difficult to accept certain things at face value. That's a generality most people don't know, but it's a known fact in the sales field."

    Translation: Unlike a lot of would be investors, engineers don't accept everything that comes out of a salesman's mouth (even if he is the CEO) without a modicum of supporting facts.
    May 21, 2013. 09:48 PM | 2 Likes Like |Link to Comment
  • Chesapeake Granite Wash Trust - The Good, Bad, And Ugly News In Q1 Results  [View article]
    Always going to be the result for trusts that do their IPOs at peak production levels.
    May 19, 2013. 03:59 PM | Likes Like |Link to Comment
  • Chesapeake Granite Wash Trust - The Good, Bad, And Ugly News In Q1 Results  [View article]
    Always going to happen when these trusts do their IPOs at the peak of flush production.
    May 19, 2013. 03:57 PM | 1 Like Like |Link to Comment
  • Chesapeake Without McClendon: Leaving Money On The Table In Asset Sales  [View article]
    The three things most needed now at Chesapeake are "Cost Control, Cost Control, and Cost Control." GHK's philosophy of paying whatever price was necessary to obtain a significant position in each new shale play will probably be recorded by history as brilliant (supported as it was by cheap and readily available debt and an unprecedented run in high oil and gas prices.) Unfortunately, this philosophy bleeds over into a cavalier attitude toward operational cost control, from the salary of a newly hired receptionist to the largess of the CEO and everything in between. Truly brilliant CEO's recognize (or guess right) about when to move from acquisition to exploitation.
    May 15, 2013. 09:46 AM | Likes Like |Link to Comment
  • BNY Mellon (BK) is appealing last week's ruling allowing Chesapeake Energy (CHK) to proceed with redeeming $1.3B in bonds six years early and save CHK ~$100M in interest payments through lower rates. In court hearings before the trial, neither party could explain to the judge how an appeal might work, since the early redemption has already been put in motion and is scheduled to be executed today.  [View news story]
    "...on any loan agreement you can pay it back early." Really ? What if the contract says otherwise ? I guess if a country doesn't pay attention to its contract with its citizens (The Constitution), perhaps we shouldn't be surprised if the language of contracts is ignored in the private sector.
    May 13, 2013. 11:26 AM | Likes Like |Link to Comment
  • Chesapeake Energy: Ironing Out The Wrinkles Could Bring A Bright Future  [View article]
    Paper is paper, Physical is physical...

    And never the twain shall meet as long as ex-Goldman types dominate Treasury, CFTC, etc., etc., and Congress is dominated by morons.
    May 8, 2013. 03:55 PM | Likes Like |Link to Comment
  • Top shareholder Southeastern Asset Management wields its influence at Chesapeake (CHK), placing Thomas Ryan, CEO of Service Corp. International (SCI), on the energy company's board. Director Louis Simpson is resigning after serving since 2011. Ryan will stand for election at the June 14 board meeting.  [View news story]
    Might want to put the drilling company on the block also.
    May 5, 2013. 10:05 AM | Likes Like |Link to Comment
  • Top shareholder Southeastern Asset Management wields its influence at Chesapeake (CHK), placing Thomas Ryan, CEO of Service Corp. International (SCI), on the energy company's board. Director Louis Simpson is resigning after serving since 2011. Ryan will stand for election at the June 14 board meeting.  [View news story]
    North America's leading provider of deathcare products and services.
    How appropriate.

    Why is it so difficult for financial types to understand that oil and gas exploration and production isn't like any other business and requires management that has had first hand experience with as many of the nitty gritty details as possible. When the U. S. government started the Department of Energy, the bureaucrats wanted people who had never been involved with oil and gas so they would be objective, and look what happened.
    May 4, 2013. 01:13 PM | 1 Like Like |Link to Comment
  • Chesapeake Sells Marcellus Acreage To Southwestern At $574 Per Acre: Quick Read  [View article]
    One of the reasons I let my Forbes subscription expire.

    Too bad we can't sell extracts of the ego of guys like McClendon and Trump to those folks with low self esteem who we keep lowering our standards to accommodate.
    Apr 30, 2013. 02:13 PM | 3 Likes Like |Link to Comment
  • Chesapeake Sells Marcellus Acreage To Southwestern At $574 Per Acre: Quick Read  [View article]
    That is the time to do it, when Wall Street has hyped the IPO as the next company to change lead into gold.
    Apr 30, 2013. 02:05 PM | Likes Like |Link to Comment
  • Chesapeake Sells Marcellus Acreage To Southwestern At $574 Per Acre: Quick Read  [View article]
    "per acre math" simply does not work in resource plays outside of a specific development and financing plan and can be very misleading."

    This was especially true when CHK was buying up the world and most everybody thought that going after the acreage at any cost was the smart move.
    Apr 29, 2013. 09:46 PM | 4 Likes Like |Link to Comment
  • Sandridge Could Be Further Negatively Impacted By Poor Trust Well Performance  [View article]
    SITC -
    All intelligent reasoning, with perhaps one exception: there always comes a time when drilling contractors catch up with demand and start to do it for less than producers can with in-house rigs. Thus, if management "having their own drilling rigs...sees another way to bring huge chunks of cash to the balance sheet" they are looking through last years glasses.
    Apr 29, 2013. 04:20 PM | Likes Like |Link to Comment
  • Sandridge Could Be Further Negatively Impacted By Poor Trust Well Performance  [View article]
    To be expected from an entity that calls cash distributions "yield" when most of it is a return of capital.
    Apr 26, 2013. 03:55 PM | 1 Like Like |Link to Comment
  • Chesapeake Without McClendon: Leaving Money On The Table In Asset Sales  [View article]
    Remember sports fans, raw acreage is a long way from money in the bank. Kingfisher County, Oklahoma is where it all started in the Mississippi Lime about 50 years ago. $500/acre may prove to be generous.
    Apr 24, 2013. 12:37 PM | 1 Like Like |Link to Comment
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