Danny Brown, the C.E.O. of Chord Energy

This is not the first occasion on which my path has intersected with Danny Brown, the CEO of Chord Energy at the Petroleum Club of Houston, always a heart full courtesy of Houston Producers Forum. I am familiar with what to anticipate and am eager to glean insights from his innovative and enhanced initiatives.

Reflecting on the Oasis situation and the advantages for Chord Energy was insightful. Importantly, Oasis's financial status could not have been worse; perhaps receivership would have been the final blow to Oasis.

Those who know me understand my stance on bankruptcy-related issues. In my view, it is merely an accounting entry in accordance with FASB and GAAP. My primary concern in such situations is ensuring that no illegal, unethical or immoral activities contributed to the company's downfall. One person's perceived loss can be another's gain, and this must be evaluated beyond mere financial metrics.

My interests lie in capital allocation strategies, tactics, and the discipline of capital allocation. I wish I had more time with Danny to discuss these matters and to convey them here.

The traditional mantra of American linear growth is elusive these days. My initial lessons on LBOs came from the catastrophic outcome of RJR Nabisco. Observing individuals in Texas, from Tim Dunn to Danny Brown and others, it seems they are navigating a precarious balance, as opportunities often present risks of significant falls.

Few, like me, still remember the aggressive behavior exhibited by KKR during the RJR Nabisco takeover. Many have forgotten the controversial actions of Henry Kravis, which culminated in the disgraceful treatment of Jerry Kohlberg.

As I review current transactions, I question whether there remains a lack of ethics similar to that of Henry Kravis, who undermined the core of KKR, Jerry Kohlberg. I wonder why business continues with such practices.

I reflect on the trajectories of my Texan heroes and ponder which of them might be following in Henry Kravis's footsteps, as loyalty seems to outweigh financial gain in KKR's case.

I discussed with Danny Brown his approach to Enterprise Risk Management and his emphasis on disciplined capital allocation. It was a valuable opportunity to learn about areas of mutual interest.