Chesapeake Energy Is The Second Largest Producer Of Natural Gas

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Executive summary
Chesapeake Energy is the second largest producer of natural gas in United States. The company invented horizontal drilling and proved to be an expert of unconventional drilling. Having the drive and commitment to achieve great accomplishments Chesapeake managed to set operation efficiency standard in the industry with their core values of integrity, trust and transparency.
Although having financial issues with acquiring more debt and less liquid capital, the company managed to survive fluctuations of natural gas price and managed to innovate and apply other methods of unconventional drilling. Chesapeake still has room for improvement. Cost management and financial risk management can reduce debt greatly and provide
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Aubrey McClendon and Tom L. Ward founded Chesapeake Energy in 1989. McClendon and Ward graduated from college a decade before the oil industry skyrocketed. Seeing the potential beforehand in natural gas exploration and production, McClendon and Ward started with 10 employees and $50,000 initial investment to drill reservoirs. The duo concentrated in horizontal drilling and expanding its reserves. Its success grew rapidly due to findings of natural gas in south Oklahoma, southeastern Texas and alongside Gulf Coast. Company completed its IPO and started to offer shares in 1993 leading to Chesapeake Energy having the highest growth rate in the industry between 1994 and 1996. However, success didn’t last too long due to the collapse of natural gas prices, company changed it strategy and focused only on natural gas production leaving sites in Texas, Louisiana and coming back to Oklahoma to initiate its strategy. As the process of research and development became costly, Chesapeake started to shape the industry because of their commitment to horizontal drilling and exploring more reservoirs. In 2006, the company entered S&P 500. Chesapeake Energy produces than 4 trilling cubic feet of natural gas as reported in 2014.

Goals, Vision/Mission, Constraints

Chesapeake goals focus on driving shareholder value with executing business strategies, disciplinary finances with profitable and efficient growth from
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