Mouse Over to Stop Rotation & Read Ad

Tuesday, December 17, 2013

McClendon's Partnership Sets Out $2 Billion Offering - Is It a Good Investment?

From News OK:
Investors who want to back Aubrey McClendon's new oil and gas ventures will get a chance with a $2 billion offering of units unveiled Friday.
In a filing with the Securities and Exchange Commission, American Energy Capital Partners LP said it planned to offer up to 100 million units priced at $20 per unit. Proceeds of the sale would go to develop or buy onshore oil and natural gas properties in the United States.
The preliminary prospectus spells out a layered management approach. McClendon's newly formed AECP Management LLC would manage the partnership under an agreement with American Energy Capital Partners.
Read the whole article here.

An article from Forbes questions the wisdom of investing in the venture.  Here's a portion:
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. 
And you’re betting that he’s going to look out for your interests instead of his own. Ha. As the prospectus makes clear, McClendon (unlike when he was CEO of Chesapeake) will be under no obligation to give his best efforts or best assets to American Energy Capital Partners LP. 
You can read the rest of the reasoning in that article by clicking here. 

Connect with us on Facebook and Twitter!

No comments :

Post a Comment

Follow by Email