Waking up to some great news, and to all the id--ts who said there is no way they would move to Okc. 😂 😂 😂 😂
7 replies (most recent on top)
Based on the latest Proxy report, BW is set to make roughly $33 million from this deal (before any bonus) and CC is set to make around $12 million.
Good haul for 7 years of derelict mismanagement.
From SWN's press release (see below), it looks like Houston will have a trading focus. The release also mentions $400 million in synergies, part of which will of course include G&A. SWN's TTM G&A is only $183 million, so expect massive layoffs in Houston.
"In order to maximize value of the combined company's scale of production, Investment Grade quality capital structure and 100% certified Responsibly Sourced Gas, the company will build a global marketing and trading presence in Houston to supply lower-cost, lower carbon energy to meet increasing domestic and international LNG demand."
Material presence, if I had to venture, means that SWN has a long term contract for renting 10000 Energy Drive which commits them to being in that location for a while.
There is no good reason to maintain two campuses other than this - you lose too many synergies from consolidating down to one campus where your asset teams, operations teams and corporate teams can be colocated and can work together.
Once Chesapeake takes over and can renegotiate the rental contract to a price that is acceptable to both parties, the Houston campus will go away. No reason to carry the extra costs of two campuses, and the board will demand it.
At least the former regime of SM, JS and AS that thought they needed to reinvent the wheel and ruined the company with the Brown Dense boondoggle and the original CHK asset purchase aren’t the ones that will be profiting off of this
Most likely “material” presence will just mean engineers and some field representatives. Maybe some tax people. Office staff should be at the headquarters in Okc though
There will be a “material presence” in Houston. What do you think that means?
I hate to see certain executives profiting immensely from this acquisition, but I am glad to no longer have to listen to the CEO ever again after this deal closes. The death knell of SWN was when JM brought BW to the company. I’m sure ND’O knows all about the “quality” of SWN executives from his cousin ‘s DD’O experience with BW.
Also great to see that BW negotiated a deal that sold the company for 3% less than yesterday’s closing market value. GJ BW on your last action with the company - sell for 3% than the market said you were worth. Just another example of leading with Head, Heart and Guys while staying laser focused. This one is going to a lawsuit.
People I feel bad for:
- All the SWN people losing their jobs ($400 million in savings from G&A will mostly come from layoffs for duplicate positions)
- - The rest of the oil and gas CEOs. You are losing your court jester and will need to find a new CEO for the brunt of your jokes / mockery.