In spite of some criticism about its acquisition pace, Chesapeake Energy Corp. (NYSE: CHK) chief executive Aubrey McClendon says the company has no plans to change its course. Oklahoma City-based, gas-focused Chesapeake aims for balanced drillbit and acquisitions growth and regional consolidation to generate operating scale, maintain low operating costs and high returns. "Our strategy is clear, concise and consistent. What we do has worked, is working and should keep working for the foreseeable future." This dedication to strategy has helped the company become the third largest independent producer of U.S. gas. It now has about 121 operated rigs and, as of the third quarter, 8.4 trillion cubic feet equivalent per day of production (92% gas, 63% proved developed). Most E&P companies have asset bases that are too diversified and too spread out, McClendon told attendees at a recent meeting sponsored by the Houston Society of Financial Analysts. Chesapeake is staying focused on the onshore areas of the southwest U.S. and the Appalachian Basin. "You can't dabble in several areas. Just pick one and dominate it." Companies that don't often suffer from "operational mediocrity, an incoherent operational strategy and resulting investor unease about the future," he added. For more on this, see the December issue of Oil and Gas Investor. For a subscription, call 713-260-6441.

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