Chesapeake Energy Buys Land In Oklahoma as Asset Sales ContinueVW Staff
Despite the frenzied pace at which Chesapeake Energy Corporation (NYSE:CHK) has been selling its assets, the ever-embattled company’s land buying in Oklahoma City continues to endure. This continued land buying in Oklahoma City highlights the company’s overt intentions to expand its city based campus.
Through its notable affiliates, like Property Development LLC, Chesapeake Energy Corporation (NYSE:CHK) is expanding its footprint, and in the process, raising diverging opinions. Apparently, some of the purchases involve crumbled and seemingly valueless properties. Despite this, Chesapeake Energy Corporation (NYSE:CHK) is forking out millions in the name of land purchases. This has raised many opinions and questions over Chesapeake’s true intentions with the land.
All the same, the company and its business partners have chosen to stay mum over the matter, underscoring the company’s intention to avoid controversial situations.
Since September 2011, Property Development, in particular, has spent an estimated $8 million to purchase around 35 acres in the north western part of the city. Back in August of this year, it yet again parted with $1.19 million for two homes near the Chesapeake campus. Interestingly, the nature of the land acquired in August proclaimed the controversial nature of the purchases. Reports revealed that one of the homes was a 1938 two story farmhouse. Yet again, neither Chesapeake Energy Corporation (NYSE:CHK) nor the home owners gave into requests for comments.
Following this home buying, speculative entrepreneurs have started buying homes around the campus, in the hopes that Chesapeake will buy their homes at increased rates. One, Lewis Matula, told a local paper that it would only be a matter of time before Chesapeake approached him with an offer. “I feel it’s inevitable that they will buy my home, but I don’t want to go anywhere,” noted an anxious Matula.
All this rampant buying goes on as the company’s protracted asset sale continues to gain momentum. In a long term plan to plug the cash drain and restore liquidity, the company has been engaged in a prolonged asset sale, netting millions of dollars.
Meanwhile the company, which seemingly appears to be inseparable with controversy, has hired a new attorney in light of thickening controversy. James Webb is the company’s new legal counsel, and is expected to assume office at a time when all the company’s skeletons are hanging out of the closet.
It is an undeniable fact that Webb faces an uphill task, as he battles with ongoing scandals over CEO Aubrey McClendon’s personal loan row, and disputed lease deals in Michigan. He is also expected to provide some fashion of oversight to the ongoing land buying in Oklahoma.