$1 million an hour

[Bob Of Burleson]

McClendon seeks to raise $2 billion
through new Fort Worth partnership

By Joe Carroll and Bradley Olson
Bloomberg News

Aubrey McClendon, the shale wildcatter who’s raised $1 million an hour since leaving Chesapeake Energy last year, is seeking another $2 billion for oil drilling through a newly-formed Fort Worth-based partnership.

Energy 11 LP plans to offer 95 million common units for $20 each and 5.26 million units for $19, according to a prospectus filed Thursday. The units will not trade on any public exchange. A subsidiary of McClendon’s American Energy Partners, based in Oklahoma City, will manage all aspects of Energy 11’s business, the filing said.

With help from private equity funds and bond investors willing to buy debt that’s seven levels below investment grade, McClendon is building an empire following the same playbook he used to turn Chesapeake into a drilling powerhouse. A $1.6 billion debt offering this week made American Energy the most highly leveraged exploration company, with a debt load about 10 times earnings before interest, taxes, depreciation and amortization, a person familiar with the matter said today.

McClendon’s new venture calls on the talents of some of his former colleagues at Chesapeake. Clifford Merritt, a former land manager for the company, and Anthony “Chip” Keating, who worked in real estate development for Chesapeake and is the son of a former Oklahoma governor, are two of the four top leaders of Energy 11’s general partner.

Energy 11 is based at 120 W. 3rd St. in Fort Worth, according to the prospectus, and lists David McKenney as chief financial officer.

Read more here: http://www.star-telegram.com/2014/07/17 ... rylink=cpy