Chesapeake turns to Jefferies’ Eads in $28 billion deals

Workers join sections of pipe on a Trinidad Drilling rig leased by Chesapeake Energy north of Douglas, Wyo. Photo: Alan Rogers / Copyright 2012 CASPER STAR-TRIBUNE

Posted on May 21, 2012 at 7:01 am
by Bloomberg

When Chesapeake Energy Corp. Chief Executive Officer Aubrey McClendon went on an oil and natural gas buying spree, Ralph Eads was the banker who found the money to fund it.

The vice chairman at Jefferies Group Inc. and former fraternity brother of McClendon helped his firm win work advising Oklahoma City-based Chesapeake on more than $28 billion of transactions since 2007. He assisted Chesapeake in asset sales to raise cash the company then plowed back into locking up new prospects across the U.S., what Chesapeake often calls a “land grab.”

McClendon is depending now on his Jefferies confidant at an even more crucial moment. Falling gas prices, combined with the buying binge, is forcing Chesapeake to unload assets to keep the company afloat. Along with Goldman Sachs Group Inc., Jefferies bankers are seeking buyers for oil-rich prospects and lending Chesapeake $4 billion in the meantime.

“Without Wall Street, Chesapeake wouldn’t be able to do what it has done,” said Phil Weiss, an analyst at Argus Research in New York who rates the shares “sell.”

Read more: Fuel Fix » Chesapeake turns to Jefferies’ Eads in $28 billion deals.

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Posted on May 21, 2012, in Quick Links and tagged , , , , , , , . Bookmark the permalink. Comments Off on Chesapeake turns to Jefferies’ Eads in $28 billion deals.

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