American Energy Partners LP has hired John K Reinhart, a former Chesapeake Energy Corp. executive, to take over as chief operating officer for two of its affiliates in the Utica and Marcellus shales.
Reinhart has a twenty year career in the industry, of which the last eight were at Chesapeake – where he most recently held the position of senior vice president of operations and technical services, leading 1,400 employees. His new role will see him taking control of operations in Ohio and West Virginia, in the same regions that he was involved with when he was with Chesapeake. During his time there, Chesapeake grew to be the largest producer of oil and natural gas. American Energy believes that he is the best person to develop their operations in the area as a result.
The two LLCs that he will control: American Energy-Utica and American Energy-Marcellus are already in primed for growth as he steps into his new role. The former is in an industry-leading position in eastern Ohio’s Utica region while the Marcellus LLC has just acquired about 48,000 acres across five counties in West Virginia. This has given it a solid foothold in developing its natural gas production.
American Energy has ambitious plans for the two operations, with over 3,000 new wells planned over the next decade backed by up to $25 billion in new investment. The company, based in Oklahoma City, was founded last year by Aubrey McClendon – himself a former Chesapeake CEO – and has raised more than $13 billion in the last sixteen months. They currently hold 630,000 net acres and have built their production up to the equivalent of 82,000 barrels of oil a day to date.