Here’s what I think about Chesapeake…
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oil and gas
Kinder Morgan Inc (KMI): You sell, I’ll buy
Richard Kinder, the CEO of KMI, is a brilliant operator and a brilliant capital allocator. He is a self-made billionaire with a net worth of roughly $9B.
This is a company with good economics, great management, and a reasonable valuation. The company is buying back its shares and its warrants. Kinder has come out and said that the company is undervalued. Continue reading
Chesapeake’s one-sided midstream deals
Originally, I thought that Chesapeake may have been using its midstream deals to inflate its profits. I was mistaken. Chesapeake’s midstream vehicle (now named Access Midstream Partners) was structured in a very one-sided deal that heavily favored Chesapeake.
I don’t think that many people give credit to Aubrey McClendon for this deal.
