American Energy Partners, LP
| Company type | Limited partnership |
|---|---|
| Industry | Oil and natural gas |
| Founded | April 2013 |
| Founder | Aubrey K. McClendon |
| Defunct | August 2016 |
| Fate | Wound down operations by summer 2016 |
| Headquarters | Oklahoma City, Oklahoma , United States |
Area served | United States |
Key people | Aubrey K. McClendon (Founder, Chairman, CEO) |
| Products | Natural gas and oil exploration and production; minerals, royalties, non-operated interests management |
Number of employees | 450+ (2015) |
American Energy Partners, LP (AELP) was a U.S.-based company specializing in natural gas and oil, established in April 2013 by Aubrey K. McClendon. The firm oversaw subsidiaries engaged in the exploration and production of shale gas and oil within the United States, along with managing assets related to minerals, royalties, and non-operated interests. Its headquarters were located in Oklahoma City, Oklahoma, and it employed more than 450 individuals as of August 2015. On May 18, 2016, two months following McClendon's passing, AELP declared that it would wind down its operations by the conclusion of summer 2016.
History
Aubrey K. McClendon, an entrepreneur from Oklahoma City, launched American Energy Partners in April 2013 after departing from Chesapeake Energy Corporation, a company he co-founded and led as CEO for nearly 24 years.
Beginning with a team of just 12 employees based in Oklahoma City, AELP secured $1.7 billion during its inaugural year to develop and drill around 110,000 net acres within Ohio’s Utica Shale formation. Early funding included $1.25 billion from The Energy & Minerals Group, headed by John T. Raymond, alongside investment from First Reserve Corporation.
During its initial two years, AELP concentrated on asset acquisition, assembling management teams, and obtaining capital to enter natural gas and oil plays in Ohio, West Virginia, Oklahoma, and Texas. The company established distinct affiliates for each region. By the fall of 2014, it had accumulated $14 billion in capital commitments for acquisitions, including $3.5 billion contributed by The Energy & Minerals Group. In February 2014, AELP expanded its Utica Shale acreage by acquiring an additional 130,000 acres—comprised of 74,000 acres purchased from Hess Corporation and 56,000 acres from ExxonMobil Corporation. That same month, it also acquired 120,000 acres in Oklahoma’s Woodford Shale from Calyx Energy II. In June 2014, the company added 63,000 acres in Texas’ Permian Basin through a purchase from Enduring Resources II. August 2014 featured a $1.75 billion acquisition of 75,000 acres spanning Ohio’s Utica Shale and West Virginia’s Marcellus Shale from Terrence Pegula’s East Resources. By May 2015, AELP’s affiliates controlled approximately 600,000 net acres across four states.
In addition to exploration and production activities, AELP ventured into midstream infrastructure by launching American Energy – Midstream, LLC in June 2014. That year it collaborated with Energy Transfer Partners LP to transport Utica shale gas via the proposed Rover Pipeline to markets including the Midwest and Gulf Coast regions. In August 2014, American Energy – Midstream entered into an agreement with Regency Energy Partners to construct a $500 million pipeline linking the Utica play to major transmission systems.
In June 2015, AELP renamed its Appalachian subsidiary Ascent Resources, LLC to prepare it for independent operation. Soon after, American Energy – Midstream evolved into Traverse Midstream Partners LLC.
Broadening its scope internationally in August 2015, AELP secured agreements with Australian firms Armour Energy Ltd., obtaining rights to develop 21.5 million acres, and Empire Energy Group Ltd., which added rights covering another 14.6 million acres. The following month, AELP formed a partnership with EIM Capital aimed at developing unconventional energy assets in Mexico.
Operations and locations
Headquartered in Oklahoma City, Oklahoma, American Energy Partners (AELP) functions through a network of affiliate companies that specialize in distinct regions and sectors within the oil and natural gas industry. These affiliates frequently evolve into independent businesses and may initiate initial public offerings when market conditions are favorable. AELP's activities encompass exploration and production across major shale plays such as the Utica Shale in Ohio, Marcellus Shale in West Virginia, Woodford Shale in Oklahoma, and Wolfcamp Shale in Texas. The company formerly operated midstream pipeline assets via an affiliate until July 1, 2015, when American Energy – Midstream was spun off as Traverse Midstream Partners. Furthermore, AELP provides asset management services as part of its portfolio.
Affiliates
By August 2015, AELP's affiliate companies included American Energy – Permian Basin, LLC (AEPB); American Energy – Woodford, LLC (AEW); American Energy – NonOp, LLC (AENO), which holds nonoperated oil and gas properties; and American Energy – Minerals, LLC (AEMN), dedicated to acquiring mineral rights and overriding royalty interests.
In addition to these, AELP has created affiliates designed to secure capital for purchasing oil and natural gas assets as well as for overseeing international holdings.
Five of these affiliates have transitioned into independent entities: Ascent Resources (previously American Energy – Appalachia), which combines Utica and Marcellus operations covering 235,000 net acres with an estimated daily output of 280 million cubic feet equivalent and proven reserves totaling 1.8 trillion cubic feet equivalent; Traverse Midstream Partners (formerly American Energy – Midstream); Permian Resources, LLC, established from the Permian Basin affiliate effective April 1, 2016; and White Star Petroleum, LLC, which was formerly American Energy – Woodford.
Corporate affairs
Aubrey K. McClendon serves as the founder, chairman, and CEO of the company. As of August 2015, AELP employed more than 450 individuals, predominantly located in Oklahoma City. In December 2014, it achieved the top position among large companies on The Oklahoman's "Top Workplaces 2014" ranking.
Chesapeake Energy Corporation lawsuit
On February 17, 2015, Chesapeake Energy Corporation () initiated legal action against American Energy Partners, accusing McClendon—its former CEO—of misappropriating proprietary information from Chesapeake for use at American Energy. McClendon asserted that his severance agreements authorized him to utilize certain data. The American Energy – Utica affiliate, operating independently from McClendon's control, reached a settlement with Chesapeake in April 2015 for up to $25 million. Nevertheless, claims against American Energy and other affiliated entities continued. In May 2015, an Oklahoma County judge determined that the dispute must be resolved through arbitration rather than court proceedings.