Expand Energy
{{short description|American energy company}}
{{Infobox company
| name = Expand Energy Corporation
| logo =
| type = Public
| traded_as = {{ubl|{{Nasdaq|EXE}}|S&P 500 component}}
| industry = Petroleum industry
| predecessors = {{ubl|Chesapeake Energy|Southwestern Energy}}
| founded = {{Start date and age|1989}}
| founders = {{ubl|Aubrey McClendon|Tom L. Ward}}
| hq_location = {{nowrap|Oklahoma City, Oklahoma, U.S.}}
| key_people = {{ubl|Michael Wichterich (executive chairman)|Domenic J. Dell'Osso, Jr. (CEO & president)|Mohit Singh (CFO)}}
| products = Natural gas
| production = 3,758 MMcfe of natural gas per day (2024)
| revenue = {{decrease}} {{US$|4.235 billion|link=yes}} (2024)
| operating_income = {{decrease}} {{US$|–803 million}} (2024)
| net_income = {{decrease}} {{US$|–714 million}} (2024)
| assets = {{increase}} {{US$|27.894 billion}} (2024)
| equity = {{increase}} {{US$|17.565 billion}} (2024)
| num_employees = {{circa|1,700}} (2024)
| website = {{url|expandenergy.com}}
| footnotes = {{cite web | url=https://www.sec.gov/ix?doc=/Archives/edgar/data/895126/000089512625000021/exe-20241231.htm | title=Expand Energy Corporation 2024 Form 10-K Annual Report | publisher=U.S. Securities and Exchange Commission | date=February 26, 2025}}
}}
Expand Energy Corporation, headquartered in Oklahoma City, is the largest independent natural gas producer in the U.S. based on net daily production. The company operates in the Appalachian Basin of the Marcellus Formation in Pennsylvania and West Virginia, as well as the Haynesville Shale in Northwestern Louisiana.
In 2024, the company produced 3,758 MMcfe of natural gas per day. In 2024, 41% of production was from the Haynesville Shale, 48% of production was from Northeast Appalachia, and 11% of production was from Southwest Appalachia.
As of December 31, 2024, the company had 20,800 Bcf of proved reserves. It also had interests in 8,000 gross productive wells.
History
File:Chesapeake Energy logo.svg
The company was founded in 1989 as Chesapeake Energy by Aubrey McClendon and Tom L. Ward with an initial investment of $50,000. McClendon named the company after Chesapeake Bay due to his love of the region.{{cite news | url=https://www.petro-online.com/news/fuel-for-thought/13/breaking-news/chesapeake-energy-sells-assets-in-2bn-deal/23262 | title=Chesapeake Energy sells assets in $2bn deal | work=Petro Online | date=December 13, 2012}} Ward left the company in 2006 to establish SandRidge Energy.
In 1993, the company became a public company via an initial public offering, with a valuation of $25 million.{{cite magazine |title=The Big Fracking Bubble: The Scam Behind the Gas Boom |url=https://www.rollingstone.com/politics/politics-news/the-big-fracking-bubble-the-scam-behind-aubrey-mcclendons-gas-boom-231551/ |last=Goodell |first=Jeff |magazine=Rolling Stone |date=March 1, 2012 | url-access=limited |archive-url=https://web.archive.org/web/20180427040225/https://www.rollingstone.com/politics/news/the-big-fracking-bubble-the-scam-behind-the-gas-boom-20120301 |archive-date=April 27, 2018 | url-status=live}}
Focusing on a strategy of drilling horizontal natural gas wells in unconventional reservoirs, the company built a sizable position in the Golden Trend and Sholem Alechem fields of South-central Oklahoma and in the Giddings field of Southeast Texas.{{cite book |last1=Li |first1=Xiaobing |url=https://books.google.com/books?id=Vy7TBAAAQBAJ&pg=PA40 |title=Oil: A Cultural and Geographic Encyclopedia of Black Gold, Volume 1 |last2=Molina |first2=Michael |date=October 14, 2014 |publisher=ABC-CLIO |isbn=9781610692724 |pages=40}}
In the mid-1990s, the company unsuccessfully attempted to extend the Austin Chalk play into western and central Louisiana.{{cite news | url=https://www.ogj.com/articles/print/volume-94/issue-33/in-this-issue/exploration/chesapeake-presses-louisiana-austin-chalk-pace.html | title=Chesapeake presses Louisiana Austin chalk pace | work=Oil & Gas Journal | date=August 12, 1996}}
In 1997, the company wrote down the value of its assets by over $200 million, approximately equal to shareholder's equity at the time, due to low commodity prices and implemented a turnaround plan.{{cite news | url=https://www.moodys.com/research/MOODYS-CONFIRMS-SR-NOTES-OF-CHESAPEAKE-ENERGY-AT-Ba3--PR_15735 | title=MOODY'S CONFIRMS SR. NOTES OF CHESAPEAKE ENERGY AT Ba3 | work=Moody's Corporation | date=December 8, 1997}}
In the early 2000s, after a rise in natural gas prices made it economically feasible, the company focused on unconventional drilling in carbonates, tight sandstone, and shale particularly in the Barnett Shale, Fayetteville Shale, and the Marcellus Formation.
In 2008, the company announced its discovery of the Haynesville Shale in East Texas and northwestern Louisiana.{{cite news | url=https://blogs.platts.com/2013/03/22/haynesville-bday/ | title=On its fifth anniversary, the Haynesville Shale is still alive but natural gas output is sputtering | last=Spencer | first=Starr | work=S&P Global Platts | date=March 22, 2013}}
In 2009, the company partnered with Orange County Choppers to create the first chopper powered by compressed natural gas.{{cite news | url=https://newsok.com/article/3378441/chesapeake-cng-chopper-born-to-be-wildly-efficient | title=Chesapeake CNG Chopper born to be wildly efficient | last=Zizzo | first=David | work=The Oklahoman | date=June 17, 2009}}
In 2011, the company agreed to a 12-year naming rights partnership with the Oklahoma City Thunder for naming and branding rights of the Paycom Center at a cost of $3 million per year, with annual increases of 3%.{{cite press release | url=https://www.nba.com/thunder/news/release_arena_110721.html | title=OKC Arena to be Renamed Chesapeake Energy Arena | publisher=National Basketball Association | date=July 22, 2011}} On April 20, 2021, the agreement was terminated.{{Cite news | url=https://apnews.com/article/basketball-business-sports-nba-cc277cf938289289fc0d66dfe6d97fcd | title=Chesapeake Energy terminates naming rights deal with Thunder | work=Associated Press | date=April 20, 2021}}
In June 2012, in response to shareholder concerns about corporate governance issues under McClendon's watch, the company appointed Archie W. Dunham as chairman, while Aubrey McClendon remained CEO.{{cite news | url=https://www.bizjournals.com/houston/news/2012/06/21/chesapeake-names-archie-dunham.html | title=Chesapeake names Archie Dunham chairman, appoints four to board | first=Olivia | last=Pulsinelli | work=American City Business Journals | date=June 21, 2012 | url-access=subscription}}
In December 2012, the company sold midstream assets for $2.16 billion.{{cite news | url=https://www.reuters.com/article/chesapeake-midstream/update-2-chesapeake-in-2-billion-midstream-deal-idUSL1E8NBIA120121212 | title=Chesapeake in $2 billion midstream deal | work=Reuters | date=December 11, 2012}}
Effective April 1, 2013, Aubrey McClendon was forced to leave the company after revelations that he took a personal stake in wells owned by the company and then used those investments as collateral for up to $1.1 billion in loans from banks that also financed the company, prompting an investigation by the U.S. Securities and Exchange Commission.{{cite press release | url=https://www.businesswire.com/news/home/20130129006821/en/Chesapeake-Energy-Corporation-Announces-CEO-Succession-Plan | title=Chesapeake Energy Corporation Announces CEO Succession Plan | publisher=Business Wire | date=January 29, 2013}}{{cite news | title=Aubrey McClendon, Ex-Head of Chesapeake Energy, Is Charged With Conspiracy | url=https://www.nytimes.com/2016/03/02/business/aubrey-mcclendon-is-charged-with-conspiracy-in-oil-and-natural-gas-bidding.html | first=Clifford | last=Krauss | work=The New York Times | date=March 1, 2016 | url-access=subscription}} He was also accused of several conflicts of interest.{{cite news | title=The Greek tragedy of the billionaire who fracked up Pa. | url=https://www.philly.com/philly/blogs/attytood/The-Greek-tragedy-of-the-billionaire-who-fracked-up-Pa.html | work=Philadelphia Media Network | date=March 3, 2016}}{{cite news | url=https://www.reuters.com/article/us-chesapeake-mcclendon-profile/special-report-the-lavish-and-leveraged-life-of-aubrey-mcclendon-idUSBRE8560IB20120607 | title=The lavish and leveraged life of Aubrey McClendon | first1=John | last1=Shiffman | first2=Anna | last2=Driver | first3=Brian | last3=Grow | work=Reuters | date=June 7, 2012}}{{cite news | last=Lustgarten | first=Abrahm | author-link=Abrahm Lustgarten | url=https://www.propublica.org/article/chesapeake-energys-5-billion-shuffle | title=Chesapeake Energy's $5 Billion Shuffle | work=ProPublica | date=March 13, 2014}}{{cite press release | title=Chesapeake Energy Corporation's Board and CEO Aubrey K. McClendon Agree to Negotiate Early Termination of Founder Well Participation Program | url=https://www.businesswire.com/news/home/20120426005814/en/Chesapeake-Energy-Corporation%E2%80%99s-Board-CEO-Aubrey-K. | publisher=Business Wire | date=April 26, 2012}}{{cite news | url=https://www.nytimes.com/2012/04/27/business/energy-environment/chesapeake-energy-to-end-chiefs-compensation-plan.html | title=Trouble With the Top Man | work=The New York Times | date=April 26, 2012 | url-access=subscription}}{{cite news | url=https://www.reuters.com/article/us-chesapeake-investigation-sec/sec-ends-probe-of-chesapeake-ex-ceo-mcclendon-no-action-planned-idUSBREA4700S20140508 | title=SEC ends probe of Chesapeake, ex-CEO McClendon; no action planned | first=Anannya | last=Pramanick | work=Reuters | date=May 7, 2014}}
In May 2013, Robert Douglas Lawler, an executive of Anadarko Petroleum, was named CEO of the company.{{cite news | title=Chesapeake Energy hires Anadarko executive as CEO | url=https://www.reuters.com/article/us-chesapeake-ceo/chesapeake-energy-hires-anadarko-executive-as-ceo-idUSBRE94J03R20130520 | first=Anna | last=Driver | work=Reuters | date=May 20, 2013}}
In 2013, the company sold 55,000 net acres in the Northern Eagle Ford Shale and 9,600 net acres in the Haynesville Shale to EXCO for aggregate proceeds of $1 billion.{{cite press release | url=https://www.businesswire.com/news/home/20130703005268/en/Chesapeake-Energy-Corporation-Announces-Sale-Northern-Eagle | title=Chesapeake Energy Corporation Announces Sale of Northern Eagle Ford and Haynesville Shale Assets for Aggregate Proceeds of $1 Billion | publisher=Business Wire | date=July 3, 2013}}
In December 2014, the company sold a large portion of its oil and gas assets in the Marcellus Formation and Utica Shale to Southwestern Energy for net proceeds of $4.975 billion. The transaction included approximately 413,000 net acres and 1,500 wells in northern West Virginia and southern Pennsylvania. Net production of the sold assets was 57,000 barrels of oil equivalent per day in December 2014.{{cite press release | title=Chesapeake Energy Corporation Closes Southern Marcellus and Utica Shale Sale; Announces $1 billion Common Stock Repurchase Authorization | url=https://www.businesswire.com/news/home/20141222005922/en/Chesapeake-Energy-Corporation-Closes-Southern-Marcellus-and-Utica-Shale-Sale-Announces-1-Billion-Common-Stock-Repurchase-Authorization | publisher=Business Wire | date=December 22, 2014}}
In 2014, the company also sold additional midstream assets for $520 million.{{cite news | title=Chesapeake to sell midstream assets | url=https://www.bizjournals.com/pittsburgh/news/2014/02/28/chesapeake-to-sell-midstream-assets.html | first=Stephanie | last=Novak | work=American City Business Journals | date=February 28, 2014}}
In September 2015, the company announced layoffs of hundreds of people in Oklahoma City.{{cite news | url=https://www.chicagotribune.com/business/sns-bc-us--chesapeake-energy-layoffs-20150929-story.html | title=Chesapeake Energy lays off 740 workers companywide | first=TIM | last=TALLEY | agency=Associated Press | publisher=Chicago Tribune | date=September 29, 2015}}
In 2017, the company sold assets in the Haynesville shale for $465 million.{{cite press release | url=https://www.prnewswire.com/news-releases/chesapeake-energy-corporation-announces-agreement-to-sell-second-haynesville-shale-acreage-position-for-465-million-300381749.html | title=Chesapeake Energy Corporation Announces Agreement To Sell Second Haynesville Shale Acreage Position For $465 Million | publisher=PR Newswire | date=December 20, 2016}}
In January 2018, the company laid off 400 employees.{{cite news | url=https://newsok.com/article/5581451/chesapeake-energy-lays-off-400-employees | title=Chesapeake Energy lays off 400 employees | first=Adam | last=Wilmoth | work=The Oklahoman | date=January 30, 2018}}
In the first quarter of 2018, the company sold assets in Oklahoma for $500 million.{{cite news | url=https://newsok.com/article/5582438/chesapeake-energy-to-sell-oklahoma-assets-for-500-million | title=Chesapeake Energy to sell Oklahoma assets for $500 million | first=Adam | last=Wilmoth | work=The Oklahoman | date=February 7, 2018}}
In February 2019, the company acquired Texas oil producer WildHorse Resource Development for $4 billion in cash and stock.{{Cite news | url=https://www.chron.com/business/energy/article/Chesapeake-WildHorse-complete-3-98-billion-M-A-13580280.php | title=Chesapeake, WildHorse complete $3.98 billion M&A deal | first=Sergio | last=Chapa | work=Houston Chronicle | date=February 1, 2019}}
In June 2020, the company filed for bankruptcy protection with $7 billion in debt.{{cite news | url=https://www.reuters.com/article/business/shale-pioneer-chesapeake-energy-files-for-bankruptcy-idUSKBN24004Q/ |title=Shale pioneer Chesapeake Energy files for bankruptcy | first1=David | last1=French | first2=Rama | last2=Venkat | work=Reuters |date=June 28, 2020 | archive-url=https://web.archive.org/web/20200629005343/https://uk.reuters.com/article/us-chesapeake-enrgy-bankruptcy/shale-pioneer-chesapeake-energy-files-for-bankruptcy-idUKKBN23Z0SS |archive-date=June 29, 2020 |url-status=live}}{{Cite news | url=https://thehill.com/policy/energy-environment/504944-chesapeake-energy-files-for-bankruptcy | title=Chesapeake Energy files for bankruptcy | first=Rebecca | last=Klar | work=The Hill | date=June 28, 2020}} It emerged from bankruptcy protection in February 2021.{{cite news | url=https://www.prnewswire.com/news-releases/chesapeake-energy-corporation-successfully-emerges-from-financial-restructuring-301225337.html | title=Chesapeake Energy Corporation Successfully Emerges From Financial Restructuring | publisher=PR Newswire | date=February 9, 2021}}{{Cite news | url=https://www.ft.com/content/85d99318-ff2f-4ed7-9b6e-951dacd7b584 | title=Chesapeake Energy emerges from bankruptcy | work=Financial Times | url-access=subscription | archive-url=https://ghostarchive.org/archive/20221211221227/https://www.ft.com/content/85d99318-ff2f-4ed7-9b6e-951dacd7b584 | archive-date=2022-12-11 | url-status=live}}{{Cite news | url=https://www.reuters.com/article/us-chesapeake-energy-bankruptcy/chesapeake-energy-emerges-from-bankruptcy-and-shifts-back-to-natural-gas-idUSKBN2A92Z7 | title=Chesapeake Energy emerges from bankruptcy and shifts back to natural gas | first=Jennifer | last=Hiller | work=Reuters | date=February 9, 2021}}{{cite news | url=https://www.forbes.com/sites/davidblackmon/2021/02/11/shifting-back-to-gas-post-bankruptcy-chesapeake-replays-an-old-strategy/ | title=Chesapeake Energy Emerges From Bankruptcy, With A Return To Its Roots In Natural Gas | first=David | last=Blackmon | work=Forbes | date=February 11, 2021 | url-access=limited}}
In April 2021, Doug Lawler resigned as CEO of the company and Mike Wichterich, Chair of the Board of Directors, was named interim-CEO.{{Cite press release |url=https://www.prnewswire.com/news-releases/chesapeake-energy-corporation-announces-departure-of-chief-executive-officer-and-appointment-of-interim-chief-executive-officer-301277721.html |title=Chesapeake Energy Corporation Announces Departure Of Chief Executive Officer And Appointment Of Interim Chief Executive Officer | publisher=PR Newswire | date=April 27, 2021}}
In November 2021, the company acquired Vine Energy, which operated in the Haynesville Shale.{{Cite press release | url=https://www.prnewswire.com/news-releases/chesapeake-energy-corporation-completes-acquisition-of-vine-energy-inc-301413288.html | title=Chesapeake Energy Corporation Completes Acquisition Of Vine Energy Inc. | publisher=PR Newswire | date=November 1, 2021}}{{Cite news | url=https://journalrecord.com/2021/11/02/chesapeake-completes-vine-acquisition/ | title=Chesapeake completes Vine acquisition | work=The Journal Record | date=November 2, 2021 | url-access=limited}}
In March 2022, the company acquired Chief Oil & Gas for approximately $2.6 billion.{{Cite press release | url=https://www.prnewswire.com/news-releases/chesapeake-energy-corporation-completes-acquisition-of-chief-ed-holdings-lp-and-affiliates-of-tug-hill-inc-301499271.html | title=CHESAPEAKE ENERGY CORPORATION COMPLETES ACQUISITION OF CHIEF E&D HOLDINGS, LP AND AFFILIATES OF TUG HILL, INC. | publisher=PR Newswire | date=March 9, 2022}}{{Cite news | url=https://www.hartenergy.com/exclusives/chesapeake-energy-completes-acquisition-chief-tug-hill-affiliates-199157 | title=Chesapeake Energy Completes Acquisition of Chief, Tug Hill Affiliates | work=Hart Energy | date=March 9, 2022}} The company also sold its assets in the Powder River Basin to Continental Resources for $450 million.{{Cite news | url=https://uk.marketscreener.com/quote/stock/EXPAND-ENERGY-CORPORATION-118794471/news/Continental-Resources-Inc-completed-the-acquisition-of-Powder-River-Basin-Assets-from-Chesapeake-E-40185551/ | title=Continental Resources, Inc. completed the acquisition of Powder River Basin Assets from Chesapeake Energy Corporation. | work=MarketScreener | date=March 24, 2022}}
In 2023, in three transactions, the company sold all of its assets in the Eagle Ford shale to Ineos, WildFire Energy (a subsidiary of Warburg Pincus and Kayne Anderson), and SilverBow Resources for a total of $3.5 billion.{{Cite press release | url=https://www.ineos.com/news/shared-news/ineos-completes-major-$1.4-billion-acquisition-of-us-onshore-oil-and-gas-assets/ | title=INEOS completes major $1.4 billion acquisition of US onshore oil and gas assets | publisher=Ineos | date=May 3, 2023}}{{Cite news | url=https://www.reuters.com/markets/deals/chesapeake-sell-14-bln-south-texas-operations-partial-win-sources-2023-01-18/ | title=Exclusive: Chesapeake Energy to offload part of south Texas operations for $1.4 bln | first1=David | last1=French | first2=Shariq | last2=Khan | editor-first1=Greg | editor-last1=Roumeliotis | editor-first2=Marguerita | editor-last2=Choy | work=Reuters | date=January 19, 2023}}{{Cite news | url=https://www.bizjournals.com/houston/news/2023/11/28/chesapeake-wildfire-energy-eagle-ford-oil-assets.html | title=Year in Review: Chesapeake selling Eagle Ford assets to WildFire Energy was a Deal of the Week | first=Olivia | last=Pulsinelli | work=American City Business Journals | date=November 28, 2023}}{{Cite press release | url=https://www.prnewswire.com/news-releases/chesapeake-energy-corporation-announces-sale-of-final-eagle-ford-package-for-700-million-301899448.html | title=CHESAPEAKE ENERGY CORPORATION ANNOUNCES SALE OF FINAL EAGLE FORD PACKAGE FOR $700 MILLION | publisher=PR Newswire | date=August 14, 2023}}{{Cite news | url=https://www.reuters.com/markets/deals/chesapeake-exit-eagle-ford-basin-with-700-mln-silverbow-deal-2023-08-14/ | title=Chesapeake to complete Eagle Ford basin exit with SilverBow deal | first=Arunima | last=Kumar | editor-first=Sriraj | editor-last=Kalluvila | work=Reuters | date=August 15, 2023}}
In October 2024, the company acquired Southwestern Energy in a $7.4 billion all-stock deal and was rebranded as Expand Energy.{{Cite news | url=https://www.bizjournals.com/houston/news/2024/10/02/chesapeake-southwestern-deal-closes-expand-energy.html | title=Expand Energy begins trading after Chesapeake closes acquisition of Southwestern Energy | first=Olivia | last=Pulsinelli | work=American City Business Journals | date=October 2, 2024}}{{Cite press release | url=https://www.globenewswire.com/news-release/2024/10/01/2956103/0/en/Chesapeake-Energy-and-Southwestern-Energy-Complete-Merger-and-Provide-Third-Quarter-Earnings-Conference-Call-Information-Company-Rebranded-as-Expand-Energy.html | title=Chesapeake Energy and Southwestern Energy Complete Merger and Provide Third Quarter Earnings Conference Call Information, Company Rebranded as Expand Energy | publisher=PR Newswire | date=October 1, 2024}}
Controversies
=Antitrust allegations=
==Alleged collusion with Encana to lower land price==
In mid-2012, the U.S. Department of Justice (DOJ) began an investigation into whether Encana, Canada's largest natural gas company, "illegally colluded with Chesapeake Energy Corp to lower the price of Michigan exploration lands during a public land auction in May 2010." The antitrust probe ended in 2014 with a letter to Chesapeake by the U.S. Department of Justice. Internal investigations by the companies found no evidence of collusion.{{cite news | url=https://www.reuters.com/article/chesapeake-doj/justice-department-ends-antitrust-probe-of-chesapeake-deals-idUSL2N0NM2VC20140430/ | title=Justice Department ends antitrust probe of Chesapeake deals | first=Brian | last=Grow | work=Reuters | date=April 30, 2014}}{{cite news | url=https://www.reuters.com/article/us-chesapeake-land-deals/special-report-chesapeake-and-rival-plotted-to-suppress-land-prices-idUSBRE85O0EI20120625/ | title=Special Report: Chesapeake and rival plotted to suppress land prices | first1=Brian | last1=Grow | first2=Joshua | last2=Schneyer | first3=Janet | last3=Roberts | work=Reuters | date=June 25, 2012}}
==Cancellation of leases==
On June 5, 2014, the state of Michigan filed felony fraud and racketeering charges against the company, alleging that the company canceled hundreds of land leases on false pretenses after it sought to obtain oil and gas rights.{{cite news | last=Harris | first=Andrew | url=https://www.bloomberg.com/news/articles/2014-06-05/chesapeake-energy-faces-new-charges-over-michigan-leases | title=Chesapeake Energy Faces New Charges Over Michigan Leases | work=Bloomberg News | date=June 5, 2014 | url-access=subscription}} Michigan attorney general Bill Schuette claimed that the company "obtained uncompensated land options from these landowners by false pretenses, and prevented competitors from leasing the land." Chesapeake Energy disputed all charges.{{cite news | last1=Grow | first1=Brian | last2=Schneyer | first2=Joshua | url=https://www.reuters.com/article/us-michigan-chesapeake-charges/michigan-ag-charges-chesapeake-with-racketeering-and-fraud-idUSKBN0EG24V20140605/ | title=Michigan AG charges Chesapeake with racketeering and fraud | publisher=Reuters | date=June 5, 2014}} In 2015, the company settled the lawsuits by agreeing to pay $25 million to the landowners.
==Underpayment of royalties to landowners==
The company has faced thousands of lawsuits regarding the alleged under-payment of royalties due to individuals that leased land to the company.{{cite news | url=https://www.star-telegram.com/news/business/article60506611.html | title=Chesapeake seeks to move royalty lawsuits to Houston | first=MAX B. | last=BAKER | work=Fort Worth Star-Telegram | date=February 15, 2016}} In 2013, the company agreed to pay $7.5 million to settle a class action lawsuit by Pennsylvania landowners.{{cite news | url=https://stateimpact.npr.org/pennsylvania/2013/09/03/chesapeake-energy-agrees-to-pay-7-5-million-to-settle-royalty-lawsuit/ | title=Chesapeake Energy Agrees To Pay $7.5 Million To Settle Royalty Lawsuit | first=MARIE | last=CUSICK | work=NPR | date=September 3, 2013}} In 2017, the company agreed to pay another $30 million to Pennsylvania landowners.{{cite news | url=https://www.ldnews.com/story/news/2017/12/26/chesapeake-energy-agrees-pay-30-m-settle-shale-royalty-dispute-but-theres-snag/982896001/ | title=Chesapeake Energy agrees to pay $30M to settle shale royalty dispute, but there's a snag | first=ANDREW | last=MAYKUTH | agency=Pittsburgh Post-Gazette | work=Lebanon Daily News | date=December 26, 2017}}
==Alleged collusion in land auctions==
On March 1, 2016, a DOJ federal grand jury indicted Aubrey McClendon for allegedly rigging the bidding process for land leases between December 2007 and March 2012. McClendon was charged of orchestrating a conspiracy in which two oil and gas companies, not named in the indictment, colluded not to bid against each other for the purchase of land in northwestern Oklahoma. According to the indictment, the companies decided ahead of time who would win bids, with the winner then allocating an interest in the leases to the other company, eliminating open competitive bidding.{{cite news | url=https://www.wsj.com/articles/ex-chesapeake-energy-ceo-aubrey-mcclendon-indicted-on-antitrust-charges-1456877558 | title=Aubrey McClendon, former Chesapeake Energy CEO, indicted | first1=Bradley | last1=Olson | first2=Brent | last2=Kendall | first3=Erin | last3=Ailworth | work=The Wall Street Journal | date=March 1, 2016 | url-access=subscription}} The DOJ said this was the first case resulting from a continuing federal antitrust investigation into price fixing, bid rigging, and other anti-competitive conduct in the petroleum industry.{{Cite news | url=https://www.reuters.com/article/business/former-chesapeake-ceo-mcclendon-charged-with-bid-rigging-of-land-leases-idUSKCN0W35Y7/ | title=Former Chesapeake CEO McClendon charged with bid-rigging of land leases | first1=Brian | last1=Grow | first2=Diane | last2=Bartz | work=Reuters | date=March 2, 2016}}
The next day, on March 2, 2016, McClendon died in a single-occupant single-vehicle crash when he drove his vehicle directly into a concrete bridge embankment in Oklahoma City.{{cite news | url=https://www.latimes.com/business/la-sp-sn-okc-aubrey-mcclendon20160302-story.html | title=Energy titan Aubrey McClendon dies in single-car crash a day after being indicted | agency=Associated Press | work=Los Angeles Times | date=March 2, 2016}}{{cite news | url=https://www.npr.org/sections/thetwo-way/2016/03/02/468930105/one-day-after-indictment-former-chesapeake-energy-ceo-dies-in-car-crash | title=One Day After Indictment, Former Chesapeake Energy CEO Dies In Car Crash | first1=MARILYN | last1=GEEWAX | first2=Camila | last2=Domonoske | work=NPR | date=March 2, 2016}} The charges were dropped by the DOJ as a result of the death.{{cite news | url=https://www.chicagotribune.com/business/ct-aubrey-mcclendon-death-investigation-20160303-story.html | title=Federal authorities seek to dismiss McClendon indictment after fatal crash | work=Chicago Tribune | date=March 3, 2016}}
==Alleged price-fixing==
In January 2024, a class action lawsuit was filed accusing the company, along with seven other US oil and gas producers, of engaging in an anti-competitive business practice in the form of an illegal price fixing scheme to constrain production of shale oil, allegedly leading to drivers in the US paying more for gasoline than they would have in a competitive market.{{Cite news |url=https://www.reuters.com/legal/litigation/drivers-sue-us-shale-oil-producers-over-alleged-price-fixing-scheme-2024-01-16/ |title=Drivers sue US shale oil producers over alleged price-fixing scheme |last=Scarcella |first=Mike | work=Reuters |date=January 16, 2024 |archive-url=https://web.archive.org/web/20240121051029/https://www.reuters.com/legal/litigation/drivers-sue-us-shale-oil-producers-over-alleged-price-fixing-scheme-2024-01-16/ |archive-date=2024-01-21 |url-status=live }}
=Lobbying=
In 2004, then CEO Aubrey McClendon contributed $450,000 to the campaign of Tom Corbett for attorney general of Pennsylvania. These funds were cited as the reason Corbett won the election, with a narrow margin. When Corbett eventually became governor of Pennsylvania, he was very supportive of the company's fracking activity in Pennsylvania, and Pennsylvania was the only state without a severance tax on drillers, despite the fact that the budget for education was being reduced.{{cite news | url=https://thinkprogress.org/pa-gov-corbett-slashes-education-and-health-care-refuses-to-tax-natural-gas-drilling-87a34f34cce3/ | title=PA Gov. Corbett Slashes Education and Health Care, Refuses To Tax Natural Gas Drilling | work=Think Progress | date=July 2, 2011}}
In 2008, then CEO Aubrey McClendon formed American Clean Skies Foundation, a non-profit foundation focused on selling the virtues of natural gas. The foundation was funded by the company and by McClendon. The foundation was criticized for doing nothing but pushing Congress to pass policies that benefited the company and McClendon's business interests.{{cite news | title=Aubrey McClendon's energy 'education' campaign | url=https://subscriber.politicopro.com/article/eenews/63718 | first=Dina | last=Cappiello | work=E&E News | date=April 24, 2008}}
=Environmental damage=
==Discharges of fill material==
In 2013, the Environmental Protection Agency fined a subsidiary of the company $3.2 million, and ordered it to pay an estimated $6.5 million for the restoration of sites that were damaged by the company from unauthorized discharge of material.{{cite press release | url=https://www.justice.gov/opa/pr/energy-company-pay-32-million-penalty-resolve-clean-water-violations-west-virginia | title=Energy Company to Pay $3.2 Million Penalty to Resolve Clean Water Violations in West Virginia | publisher=United States Department of Justice | date=December 19, 2013}}
==2011 well blowout==
On April 19, 2011, due to a failed seal assembly in a wellhead, the company lost control of a natural gas well in Bradford County, Pennsylvania that was being fracture stimulated, causing a large spill of salt water and chemicals, such as 2-butoxyethanol and methanol, into the surrounding countryside.{{cite news | url=https://archive.nytimes.com/www.nytimes.com/gwire/2011/05/04/04greenwire-pa-well-blowout-tests-natural-gas-industry-on-36297.html | title=Pa. Well Blowout Tests Natural Gas Industry on Voluntary Fracking Disclosure | first=Mike | last=Soraghan | work=The New York Times | date=May 4, 2011}}{{cite news | url=https://www.propublica.org/article/response-to-pa-gas-well-accident-took-13-hours-despite-state-plan-for-quick | title=Response to Pa. Gas Well Accident Took 13 Hours Despite State Plan for Quick Action | first=Nicholas | last=Kusnetz | work=ProPublica | date=April 26, 2011}}{{cite web | title=ATGAS Initial Site Characterization Report | url=http://www.chk.com/news/documents/atgas_initial_site_characterization_report_final_08292011.pdf | work=SAIC Energy | date=August 30, 2011}} By April 22, 2011, the leak had been stemmed.{{cite news | url=https://www.reuters.com/article/us-chesapeake-blowout/chesapeake-stems-flow-from-blown-pennsylvania-gas-well-idUSTRE73K5OH20110422/ | title=Chesapeake stems flow from blown Pennsylvania gas well | first=Edward | last=McAllister | work=Reuters | date=April 22, 2011}} Maryland announced its intention to sue the company for violation of the Resource Conservation and Recovery Act and the Clean Water Act since fracking fluids from the well blowout wound up in the Chesapeake Bay.{{cite news | url=https://www.reuters.com/article/us-energy-pennsylvania-lawsuit/maryland-prepares-lawsuit-over-pa-gas-drilling-effect-on-water-idUSTRE7437OR20110504/ | title=Maryland prepares lawsuit over PA gas drilling effect on water | first=Dave | last=Warner | work=Reuters | date=May 4, 2011}}
==2015 landslide==
In November 2015, the company was fined $1.4 million in Pennsylvania for a landslide caused by the company in 2011 that resulted in clogged waterways.{{cite news | title=Chesapeake unit to pay $1.4 million fine in Pennsylvania | url=https://newsok.com/article/5462542/chesapeake-unit-to-pay-14-million-fine-in-pennsylvania? | first=Paul | last=Monies | work=The Oklahoman | date=November 24, 2015}}{{cite web | url=http://pdf.secdatabase.com/1224/0000895126-16-000395.pdf | title=Chesapeake Energy 2015 Form 10-K Annual Report | publisher=secdatabase.com | date=February 25, 2016}}
Awards and recognition
In 2007, the company was named the best managed oil-and-gas company by Forbes.{{Cite news | url=https://financialpost.com/commodities/energy/chesapeakes-demise-marks-end-of-shale-model-that-changed-the-world | title=Chesapeake's demise marks end of shale model that changed the world | first1=David | last1=Wethe | first2=Joe | last2=Carroll | agency=Bloomberg News | work=Financial Post | date=June 12, 2020}}
In 2009, S&P Global Platts named the company as the Energy Producer of the Year and it received the Industry Leadership Award. The company was also a finalist in the Deal of the Year, CEO of the Year, and Community Development Program of the Year categories.{{cite web | title=Congratulations 2009 Winners | url=https://www.spglobal.com/commodityinsights/global-energy-awards/winners/2009 | publisher=S&P Global Platts | year=2010}} In 2012, the company received an Award of Excellence.{{cite web | url=https://www.spglobal.com/commodityinsights/global-energy-awards/winners/2012 | title=Platts 2012 Global Energy Awards--Winners | publisher=S&P Global Platts}}
In 2010, Shaleplay, the company's corporate band, won first place in the Fortune Battle of the Corporate Bands.{{cite press release | url=https://www.sec.gov/Archives/edgar/data/895126/000089512610000186/chk10062010_992.htm | title=CHESAPEAKE ENERGY CORPORATION’S CORPORATE BAND WINS FIRST PLACE IN FORTUNE BATTLE OF THE CORPORATE BANDS | publisher=U.S. Securities and Exchange Commission | date=October 5, 2010}}
In 2014, the company was ranked 51st on the 100 Best Companies to Work by Fortune.{{cite web | url=https://money.cnn.com/magazines/fortune/best-companies/2014/list/ | title=Best Companies to Work For 2014 | publisher=Fortune}}
In 2021, the company achieved Grade "A" MiQ and EO100 Certification for its legacy Haynesville Shale operations.{{Cite press release | url=https://www.prnewswire.com/news-releases/chesapeake-energy-corporation-achieves-grade-a-miq-and-eo100-certification-for-its-legacy-haynesville-shale-operations-301448787.html | title=CHESAPEAKE ENERGY CORPORATION ACHIEVES GRADE "A" MiQ AND EO100™ CERTIFICATION FOR ITS LEGACY HAYNESVILLE SHALE OPERATIONS | publisher=PR Newswire | date=December 21, 2021}}
See also
References
{{Reflist}}
External links
- {{Official website|https://www.expandenergy.com}}
{{Finance links
| name = Expand Energy Corporation
| symbol = EXE
| google = EXE:NASDAQ
| reuters = EXE.O
| sec_cik = 895126
| yahoo = EXE
}}
{{Oklahoma City companies}}
{{authority control}}
Category:1989 establishments in Oklahoma
Category:American companies established in 1989
Category:Companies based in Oklahoma City
Category:Companies formerly listed on the New York Stock Exchange
Category:Companies listed on the Nasdaq
Category:Companies that filed for Chapter 11 bankruptcy in 2020
Category:Energy companies established in 1989
Category:Natural gas companies of the United States
Category:Non-renewable resource companies established in 1989