Transcripts For CNBC Closing Bell 20160302

Kate . I would agree, brian. Whatever you think about his love of leverage on a personal front and on the corporate, or his alleged legal transgressions, and clearly some of the stuff has not been proven, he was a visionnary. He started chesapeake with tom ware basically from scratch. They had an amount of money in the tens of thousands. It was not a lot of money. He was known for having an eye for drill sites, right . For drying or leasing land that was going to prove valuable, and he built the company into an impressive place. I visited with him there in 2010, and sat down for like an hour. He was employing thousands of people, bringing business to Oklahoma City. He had several restaurants. I know, michelle youve been to one or more of them, right . Right. He had bought a big plot of land decided there was an old gasoline situation, an eyesore on route 66. As part of redeveloping route 66, he was going to put in the nicest gas station with the greatest selection of American Soda pop, and he bought an example of every single soda pop made in the United States, and lined the wall with them like a rainbow. That was the kind of thing he did. He was a wild man. When youre covering these stories, you know, he was under a lot of heat from shareholders. Icahn didnt like what he was doing, and there were a lot of things wrong with chesapeake. Excuse me. So i would say, ive been to ask you about these things, and his pr guys would say, no, hes not going to answer, but you would ask him and say, yeah, heres the deal, this guy is mad at me, and youre thinking does he know hes being recorded . I would say, listen, this is on the record. And he said, i dont care, i wanted to sell the truth. He was a selfeffacing wild man, given to charities, a lot of cool things. He invited me down to the university of oklahoma to do my show there, had a natural gas motorcycle, first one only, gave me a picture of it she was this swashbuckling guy, by the way, he was a finance guy. People would say hes not an oil driller, but a finance guy. He had an interesting mix of interests. We talked about him as an entrepreneur, he obviously founded this oil and gas company. In some ways he was an environmentalist. Even orel gore would say he himself drop a compressed natural gas vehicle around the headquarte headquarters. The best slots were reserved for cng vehicles. He was aproud alum news of duke university. Overs the years, he was personally supportive of lacrosse players, he was very active in what he does. Remember the money for sierra club . Yeah. So the guy who was running it, said coal kills, you know, he mentioned some number, but natural gas doesnt, and then it was revealed that aubrey gave the money and that was the end of that. He was always doing stuff. You want to tell him aubrey, man, you play more close to the edge than anybody i have ever seen. Exactly. I talked to my lawyer, i said, how bad, sherman . Worse, bid rig, they are going to crucify him. And jail was possible. And the financial crisis in october of 2008 he got a personal margin call. We were reminded of this when this went on with Michael Pearson. When this went on with Michael Pearson recently at valiant, right . Not only was he indicted, but indicted with an Unnamed Company that was yet to be revealed. Thats the other part of that story. One wonders what aspect that played into this entire situation, but theres another part of the story. Theres an unnamed reportedly Large Company that you linked to mr. Mcclendons alleged activities between 2007 and 2012,s plus Just Authority the private equity fund energy and Minerals Group told its investors it was season operations and any Business Activities with mr. Mcclendon, basically comes right after that indictment. They say they have invested 3 billion in ventures with mr. Mcclendon since he left chesapeake. He says the allegations wont affect their portfolios, but very serious implications. I dont know if youve had the youre a lawyer. Is that person cooperating. I reached out to chess peek. Chesapeake energy deeply saddened by the news weve heard today, and our thoughts and prayers were to the family. Thats what you would expect them to say. Scott cohn, as jim just said, is the indictment was a very serious charge, involved under the sherman antitrust act. Your thoughts on this matter . Says founded chesapeake with mr. Mcclendon, and the other issue here, and jack coffee is the fact that chesapeake was clearly cooperating. They said they were cooperating, but they also had said that they had qualified for the department of justices amnesty program, and that means in order to qualify for that, according to professor coffey, they have to be the ones who turn him in first, who basically expos the issue first, so chesapeake, the company he founded, completely now turned on him. Obviously they had a falling out several years ago, but its just a remarkable turn of events that cull minute yates with this tragic accident this morning. Scott, its worst noting for sure they parted ways in 2013, but also there was private litigation within the last year or so between mcclendon personally and the company, chesapeake accusing him of stealing trade secret in order to develop his new business. That was ultimate will you settled, but that was you willy. On a moore abstract note, el know theres a feeling they had to clean up a huge mess there were minimal agreements with their partners that were almost unaffordable, so theres been a lot of wood to chop at chesapeake in terms of how he operated the company. And they probably had to do this clear le cannot have felt good about chess peek, but for the company, theres a great of the responsibility they have if they feel theres this type of conduct, and it seems that they did that. The business still has very much a family kind of atmosphere, when you talk to bangers in houston, drillers no, no, doug lawler wasnt a fan. They had a big falling out. Agreed, but he went into big in nat gas. No one believed it was in utica, except for the rockefeller company. Jim bo, im going all in. But jim . He was a wagerer. He was a bettor, and he bet wrong. To kates point, did he then make a lot of enemies where he was a target when he was indi indicted . He had a million friends and a million enemies. He lived large. He lived large. Hey, jim he had guys who hated him. Scott, hold on a second. Apparently we have new video thats just been fed in. Taking away the car. Thats a 2013 chevy tahoe that mr. Mcclendon was driving. Listen, this is where youre going to say in the stuff. A shoutout to Oklahoma City. I mean, Aubrey Mcclendon i think, for whatever you thought of him as a business person, he did a lot. Michelle, you mentioned this earlier. Oklahoma city has struggling, devin, chesapeake, sandridge, a lot of these companies in oklahoma have been hit harder than any in texas, and i think that Oklahoma City, and he owned 20 of the Oklahoma City thunder, he still does, but i think that Oklahoma City lost a favored son. Even if you didnt like him, the guy did a lot for that city. Sue, do you have more news . He would say, it costs 3 for a bottle of milk. Think about the three bucks at that point for oil . How many things it has to go through and why oil was there for a wronged fuel, that its much cheaper , i want you to understand our business, and he went to the utica shale, look at the jobs were creating . Look at this, you cant get in a hotel rook. Hes got the largest wine collection, doing side deals going on, i mean, if you said you liked aubrey there were ten guys who hated you. They would just hate you. You know who youre defending . You realize, look, theres two sides to every story, and theres kind of a gentle soulful guy. And one of the most well he may not be a household name, but one of the most connected. But the board of duke is a heavy hitter list. Tim cook, adam silver, steve palucca, theres a dormitory of mcclendon hall. I believe there are gargoyles in the shapes of their faces at duke. Guys, we now have a statement from American Energy limited partners. They say it is with deep sads in that aelp confirms that earlier today its founder aubrey k. Mcclendon died in a car accident on midwest boulevard in Oklahoma City. His tremendous leadership, vision and passion for the industry had an impact on the community, the country and the world. We are tremendously proud of his legacy, and will continue to work hard to live up to the unmatched standards he set for excellence and integrity. Please join us in expressing our condolences to his family. That we got just a few moments ago from aelp. Sue, thank you very much. We conclude with this shockic turn in the story, the life and death now of Aubrey Mcclendon. Just yesterday indiana dieted on antitruth charges and today dead in a singlecar carl on a highway in Oklahoma City. Were going to wrap it up for power lunch and turn over our continuing coverage to bill and sue at the stock exchange. Bill and sue, join us bill and kelly, im sorry. Thank you very much. Youre watching closing bell, were down here at post 9. We will get to our normal coverage of the day on wall street with the dow up eight points right now, but we want to continue this exploration of the shocking death of Aubrey Mcclendon. Jim cramer is still with us. Youre having more time to reflect on this. You know, the personal thing is just incredible to think about, but the impact this will have on the industry that he was a big proponent of. In the end i think a lot of people felt he was one of these guys where he took done too much debt. I think theres always going to be a play where he believed that natural gas was the clean bridge fuel. He did was very aggressive in different shales, was a visionary, but i dont want to put too much this is an industry on the ropes because of too much success. The lowest cost. No one believed him. It is the lowest cost in the country. He had tremendous, tremendous ideas about what our country was going to do to be Energy Independent. He loved that. He was always telling me were this close to having natural gas vehicles, the f150 or natural gatt. He had the natural gas motorcycle. He had a tremendous vehicles, and he was too right. He said ten years ago he told me we have more natural gas in this country than in the middle east. Im like, yeah, youre really very funny, aubrey. He was dead right. Maybe were number two, or number one, but im shook, when i emailed him last night, imcmon, hell come on, because hes never afraid of telling the truth. Hell say listen, i dont think theyre right or heres what i did, but its hard to speak of him in the past tense. Its like as my executive producer said, has he come back . I said, no, i dont know what the deal is, this is not like audible aubrey. Each industry seems to have their face. For many in many ways, they oil guys are very secretive. We heard becky quick got an exclusive interview with rex tiller of exxon today. Thats incredibly rare. They hide unthe ray dare. To your point, mcclendon was the opposite. He was in the froont row of the thunders games. Willing to be a very tall he was pretty much the face willing to be a very tall male. I also think its interesting, look, we dont k w know, whether he took his own life or the tragic accident, but at least last night with his statement, he sounded very defiant. He struck a tone of anger and resentment, and 110 years, nobody in my industry has been charged under the sherman act, he hired a lawyer from williams and connelly, which can put up an aggressive defense. It seems out of character to me to think that he would decide to take some sort of tragic step. Im not speculating either way other than to say he seems to be going down swinging in terms of the litigation. This is somebody, kate and jim, on the cover of forbes 2010 as americass most reckless billionaire. His media reports and board dissatisfaction had been swirling around the end of his tenure, somebody who it was reported had the Company Working on bankrolling trips his family or friends were taking, you know, to you islands. That kind of thing. For there to be controversy around Aubrey Mcclendon is nothing new. Its defined the man for years. Did he do things that the press said were ethical did he break the law . I thought he was going to fight it. Bid rigging is a bad crime, and they havent gone after someone for that for 100. I thought, man, its sherman, this is going to be a bad one, let him on and tell the story. There was also some charismatic. You know, i always sent him an ema email, would you get on the show and explain whether you did this or not . You kind of wanted him not to screw up, but he had a propensity to screw up. I feel bad for his family and everybody. Theres the soda pop. Theres all the soda pop. Did you see them on the walls . He was so proud of this. I remember this story. He sways very proud of his comeback at American Energy partners, telling that story, i remember john raymond, the partner, private equity backer, came on squawk on the street, with faber, right, jim . Talked about how much financing they raise the. He was a very proud guy, and very much engaged in this second act. The wrong fuel, i think he correctly understood there was a lot of natural gas. I really enjoyed how he was such a proponent. He had this vision that the whole country was going to be driving natural gas cars at some point, never moved as fast as he wanted to, but that gas and he was anticoal. That was the most selfinterested, but also coal is bad. There were always two sides. I remember when it was mortifying that he lost all the shares in that margin call. I said if you come on, you have got to tell people do not margin. I want you to look in the camera and say do not go on margin. So he comes in and say ive got something to say before we start. Do not use margin. You know, thats him. He comes on and admits it. We go to the university of oklahoma. When he riding high, theres nobody like him. Jim, i want to teach you about wine. He was a wine expert. It was like, i dont really like red wine. Hes like he always had something to teach you. He was always a guy who had an edge and an angle, but there was a delight to him that you he was rogueish. He was roguish about his views. I now they were times when i want to myself just dont put him on, but he was too big to not put on. I will say this, though. There were signs he was on a reel. I did some stories how he was looking for new financing, having some trouble. I believe hess was putting together a and ended up with a public offering, but he lost an underwriter in the process. There was in litigation with chesapeake. He really hadnt done any media in a long time. I think he felt started. So there were clears of struggles. There were rumors of tension between him and hi private equity partners, so it was definitely a tough choopt, as for many in the business, but particularly for him, and the fact he had had a reversal of reputation, if not fortune. I was surprised how it was his success and the success of the industry that brought down the price of natural gas so much. He of all people should have known that when you start producing that much i remember he told me theres an area in the country, youve got to guess, and it was ohio. And no one knew. He knew. He knew it was ohio. All right. We are going to leave it there. I know well have much more coverage. Bill and kelly are picking it up. Its a did you have day, and for his family, a man. A rockefeller of his time. Good job. We have about 40 minutes left in the trading session. Its nots been a very volatile day on wall street. The dow up just 11 points. We have a lot to get to before the close of trade, but kelly and i will be back with more on this shocking death of Aubrey Mcclendon as we continue after this. Woman is that a newspaper . Man yes. Woman its quaint. Man did you read about this latest cyber attack . Woman yeah, i read it on my watch. Man funny. Woman they took out the whole network. Man they had to hand out pens and paper. Woman yeah. Man could it happen to us . Woman no. Were okay. Man we are . Woman yeah, we brought in some new guys. Man what do they know that we dont . Woman that you cant run a country with pens and paper. Its not just security. Its defense. Bae systems. I work here at my namfive star auto care. In rocklin california. A lot of thought was put into the change to solar and we couldnt have done it without pg e. Pg e is very committed to clean energy. Working with five star auto care we looked at how we could make their business more Energy Efficient and save them money in the long run. With solar we have saved about 85 on our energy cost. With this extreme drought were using the savings from our solar system to save every last drop of water. If you are looking for ways to save energy, your first step is to call pg e. Together, were building a better california. Kelly, you kind of set the stage there. It was a singlevehicle accident. It happened a bit after 9 00 a. M. This morning. There is a lot of specs lace about what happens, no witnesses. Response vehicles were there in a matter of moments, according to the Police Information officer who spoke arier at a news conference. One wonders whether or not that was the computer on board the car. Some cars have those s. O. S. Features and they notify Police Departments and emergency vehicles whenever there is an issue. We dont know hot they became informed. It was on a quiet road, basically under an overpass, you can see there the vehicle was completely burned out. They dont have any information from the vehicles computers yet, another Police Sergeant packo baldoramma did say there earp no signs of skidmarks. He veered off the double line, apparently at a high rate of spice, thats what we know right now. We have a statement from t. Boone pickens and he says, quote, ive known Aubrey Mcclendon no fearly 25 years. He was character mattic and a true american entrepreneur. No individual is without flaws, bus his impact on American Energy will be longlasting. That just came out moments away from t Boone Pickens. We also reached out to the energy and Mineral Group from a comment about the fact they wrote a letters to their investors, or told their investors to cease any and all Business Activities. Thats a quote with Aubrey Mcclendon the former ceo of kreismt apiece because of this federal indictment on bid rigging, which if proven would been a violation of the sherman antitrust act. It has serious implications, if proven for the Energy Industry. Emg has invested 3 billion with him since he left chesapeake. They say that have serious implications for the Energy Industry . Keep in mind the years that this indictment covered was 2007 to 2012. There is an Unnamed Company that is also involved in this indictment, and they were indicted on the allegation that they were going to rig the price of oil and gas leases in oklahoma. As weve pointed out, that is an allegation that mcclendon vehemently denied. He said the charge filed against him was wrong and unprecedented. He said, quote, all my life ive worked to create jobs and provide bundened hes proud of his track record, he said and hell fight to prove his innocence to clear hi name . Kelly and bill . All right, sue, thank you very much. Lets talk more about this . On the phone with us is neil dingman an Energy Analyst at Suntrust Robinson humphrey. Were all trying to get over the shock, but you think about it, just the series of event that have taken place in the last 24 to 36 hours have just been breathtaking, as we contemplate the end of Aubrey Mcclendons life here. Your reaction . Shock is the first thing that comes to mind and some things that jim and your guys westbound saying. I would say, youve got to give him the credit aubrey and his team really led the u. S. Energy land rush in the eight 80s, when he founded chesapeake and took it public in the early 90s. You almost have to give Aubrey Mcclendon credit for both of those. What would be the implications of that for the industry . You know, i think they would have to go back for obviously a lot of these bids through the state departments, and try to look if theres anything connected . I think the chance of that to me would appear to be relatively low, but again, i think they just have you know, you wonder if theres a next pioneer to define the next ute that. Jim cramer talks about the utica. There ooze pioneer, whether its in the u. S. Or canada or somewhere . We certainly now have lost one of the pioneers that had the foresight to do that. This was the day in which youre following chesapeake shares, watching the debt, seeing how the company was reacting to hess headlines way before we got word of this, neil, you know, as check apick how do you see them moving forward . You know, at least it sounds like theres little connection there, i think aubrey had distanced himself, obviously from being removed from ceo, so i think doug lawler and the team there, certainly they have gone a bit of a different past, and seem to be cleaning up some things that were left. How eye sneak was chesapeake. We talk about how much debt was the economy, the leverage, the different ways in which they were getting in trouble. To go go out and eye acreage, certainly you didnt have any production whereby to finance that, so he had to come up with creative ways. He certainly did that. If youre just joining us, were talking about the death shocking death that occurred this morning of Aubrey Mcclendon, the former ceo, cofounder of Chesapeake Energy, who died in the singlecar crash this morning around 9 00 a. M. Local time outside of Oklahoma City. Neil, i just wonder, its way too early, were sitting here thinking about this man and all his accomplishments, but yet now we had this at the end of his life, the shocking indictment, this serious indictment. What do you think his legacy will end up being here . You know, i think the comments you read from boone were probably more what people will remember. Again, obviously, bill, it is a shock to hear Something Like this, but again i think anybody in our Energy Industry, you know, whether you liked aubrey or not, you have to give him credit for what he established, what hes ability to show in the business. I think a lot of industry folks like myself certainly have a ton of gratitude towards him. I think about steve jobs and the impact he had there and the way he was described as a visionary and genius, but also a flawed human being. Im hearing that today as well, neal. Exactly. I think thats probably a good analogy. There are rules out there already set in place, one that jim didnt mention, where aubrey made a start, the forced pooling, for example, where you can buy small track and force everybody, and really get a start by doing things like that that were creative that hadnt been done prior to him. Neal, thanks. Neal dingman from Suntrust Robinson humphrey. Back to sue herera. We reached out to the doj, and they just gave us this statement, quote the department of justice is saddened to hear about the death of Aubrey Mcclendon. We offer our condolences to his family and loved once, end quote. This about 24 hours after they served that indictment on mr. Mcclendon, charging violations of the she wering, which if proich, the maximum, he vehemently denied 1r50i89ing that act. Ken langone certainly shared his frustrations as well, sue. We will have more clearly on the shocking death when kelly and i come back after this. Were looking at his legacy across the shale industry. Joining us is an analyst at sterne agee, year reaction here . And what are your dealings with the man . I had been out to their headquarters in Oklahoma City and med with him there and in conferences. He was certainly a larger than life personal, a very persuasive person. A deal maker. He was able to drive that, that growth vision that the company had, which allowed it to grow, though the complexity he attached u89ly proved it was a doomed strategy. I think that let to his departure from the firm. What impact if there had been no utica, if there had been no, you know, Aubrey Mcclendon pounding the table for this, where would we be in the Energy Industry, do you think . Well, he certainly was, as aggressive and as bold a wildcatter as there was in the industry, but we shouldnt say he was the only one kind of doing the work. But, you know, in essence what he did is the problem i have spot prices for natural gas at 17year lows today, and he and the other explore Action Companies proved ultimately too good. Theres so much gas that has been discovered and unlocked that its created a price problem, and that everyones talking about oil these days, but natural gas is causing a lot of distress among a lot of large companies. If anything oil seem to be following the same pattern. I just wonder again going back to the point about what happened with the injures departments indictment, what would be the impact on the industry if the charges proved true . I think its hard to extrapolate a broad conclusion. You have to really go situation by situation, you know, chesapeake did settle with the state of michigan last april, regards allegations on bid rigging there . I think its hard to find a broad interpretation, and i would note that generally speak, the land grab phase of the u. S. Shale growth era is largely behind us, you know . Its possible, but largely unlikely well unlock one of these shale places going forward. What happens to natural gas, do you think . Ultimately, you know, this is not eventful for the price of natural gas. We need a very, very hot summer and a very, very cold winter to get gas inventories back to equilibrium. The outlook is very challenged. What do you think i think his charisma in the industry, the he was ability to push and get deals done, and what sort of helped the company in growth mode was he would make these massive acquisitions of leases, then would be able to find a partner, mostly a Large International partner, to help kind of defray the costs of future drilling. That technique was good as long as gas prices were high. Do you think that was what was at play, that there was a need for bid rigging at a time when maybe the industry had been too successful and they were starting to sense the end of the boom at that time . Put that in context for us, if you would. I certainly cant speak with any kind of inside knowledge, but i think this may have been just been an instance where you have a cup 8 operators that are already intimately involved in operations a. Ened in other areas, perhaps he recognized that they were competing with each other. Its really hard to speak with certainly about what might have been driving these allegations that came out yesterday. It wouldnt be the first industry where there have been charges of trying to avoid whether in some cases for talent and perhaps for acreage. As our previous guest said it was the eagleford and utica that he almost discovered. When people are writing the story, theyre going to focus a lot on that. And on his impact across Oklahoma City. Look, he brought the basketball team, he brought the seattle supersonics to oklahoma, and his restaurants were all over Oklahoma City. You know, he really was the guy. I just wonder from your experience as well, what kind of void that leaves . He certainly had a vision for Oklahoma City. If you were ever on that campus, the initiatives he took to allow Oklahoma City to compete with dallas and houston for young talent is very impressive. But on the flip side, its important to think about what that did to the companys ability to generate strong returns on capital and to achieve the financial metrics that a lot of investors wanted to see, so it was a doubleedged sword, in that he benefited the community, but perhaps a leaner organization with electric complexity may have done better for chesapeake investors. Who fills that void, though, now in the industry . Clearly his role had changed the last four years especially after he left chesapeake p. A lot of large well capitalized company that are still andively engaged while the majors have been hesitant, theres Companies Like noble energy that are kind of exploration junkies at heart, that continue to test concepts, even large pioneer natural resources, theyre known as the alpha dogs in the permian basin, but they remain active explorers. I think the dna that these management teams have will always sort of drive them to try to sniff out the next resource play they can develop. By the way, tim, we mentioned he left chesapeake a couple years ago. What was your most recent experience . Did he seemed to be in the middle of the industry or not . I saw him on 57th street in new york, as many people often did in midtown, walking very rapidly in a suit with a bri briefcase overflowing with papers. He was likely doing some sort of fundraising or marketing meeting with potentially investors. He was frequently spotted in new york. He always moved in fifth gear, always a very driven personality. There was an energy that he had. You cant see how that really motivated. When you hear about how hard people worked for him at chesapeake, you know, the dedication and loyalty that he sort of, you know he that people had towards him. On. Ill ask you the same question that i asked neal. What do you think that his legacy will be . Hes one of the legendary wildcatters that unschlock the shale revolution. Unfortunately i think what he did was positioned a company to benefit. I think his ability to sniff out and aggressively pursue the shale plays is his legacy. Okay. Tim, thank you for joining us. Tim redsman from sterne agee. Our hearts go out to the family of mcclendon. We just got word of the last couple hours of his death. His wife katy. They three grown they should. More on that as we continue after this. Im in vests and as a vested investor in vests, i invest with e trade, where investors can investigate and invest in vests. Or not in vests. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Welcome back. If youre just joining us weve been dealing roughly for the last hour our show of the shocking news of the death of Aubrey Mcclendon in a singlecar crash outside Oklahoma City. Brian sullivan is back with us. Were still trying to absorb the shock of all of that and the impact on the industry, of course the day after he was indicted. I think when power lunch ended, we were chatting off camera, and the best analogy, hes kind of like the Boone Pickens of gas. Every industry has the face of the industry. Exactly. I think because aubrey, first all, hes a very tall guide. He had the white hair. He stood out he walked very quickly. He was a natural proponent for natural gas as well. Last year i was on a flight and happened to be sitting around the folks with mcclendons new company. They were so bullish on him and the company as well. Sort of like, weve got aubrey were going to be final. Im obviously paraphrasing, but this guy sort of got booted out of the company that he build, in a scandal, came right back swinging, trying to i think from an unmichelle carusocabrera and i chatted about this a bit in the previous hour, this was also a face of Oklahoma City. Not just with the thunder, but a guy says were Oklahoma City, were not taking a backseat to anybody. We can do this, opening up restaurants, bringing the thunder there, and Oklahoma City has had a tough time. Larger than life guy in the industry, and really the face of the national gas revolution. Do you know his intentions with the new firm . We talked so much about his original vision now, about the pricing across the industry, of course, and the number of players, very different case. I wonder what the next chapter will be. I know they had some money, capital, backing, some big ideas. The strategy was i dont think he was evangelicalist, is too far or strong of a word to see, and sort the irony is because of the evangelical nature of that push, it actually hurt the industry, because people realized that they too got in, he was really a titan. Victims of their own success. Sully, thanks, well see you later. We have six minutes left. Well get to some market coverage here, what has been a very quiet day. The dow up just 14 points. Well come back with the closing countdown . Just a moment. Ct. Ct. Kind of like grandkids equals free tech support. Oh, look at you, so great to see you none of this works. Come on in. [so i use quickbooks and run mye entire business from the cloud. I keep an eye on sales and expenses from anywhere. Even down here in the dark i can still see were having a great month. And celebrate accordingly. I run on quickbooks. Thats how i own it. I am benedict arnold, the infamous traitor. And i know a thing or two about trading. So i trade with e trade, where true traders trade on a trademarked trade platform that has all the. Get off the computer traitor i wont. cannon sound mobility is very important to me. Thats why i use e trade mobile. Its on all my mobile devices, so it suits my mobile lifestyle. And it keeps my investments fully mobile. Even when im on the move. Ahhh. We have three minutes left here. You didnt miss a lot in terms of volatility. Weve been trading in a very narrow range. So that is a story there. Crude oil very interesting, even with a huge built in stock piles. Yet very interesting development. Meanwhile, volatility continues lower, the vix hovering now well below their 20 level. Were all thinking about Aubrey Mcclendon and the elements of that today, and the impact in the industry there, but overall in this market, what do you think is going on . A huge rally yesterday, and now a quiet day. Now its a bit about the fed. So heres your opportunities about i think evan entry point. Is your mike working . It is, yes. So we can hear you know. To your point, focusing on Economic Data that comes out, weve been a positive adp report. Jobs number was pretty strong. The yield curve is starting to oil, though, continuing to be important to this market. We saw the oil rite because of this meeting. There is an expectations. A great pointivities that helped to support oil and oil helped difference its. Equity is up because of oil. Heres your chance, folks. Really there . Very good. See you later. So were going out here a pretty quiet diaw day digesting yesterdays huge gains. See you tomorrow, kell. On the close, stotts are a little higher, the dow up 32 points, adding about seven for its part. The transports were higher, the nasdaq was up 13 points, and well have more on the market in just a moment, but first, lets get back to the newsdesk. Lets have sue herera join us, with the very latest details of the shocking death Aubrey Mcclendon. Thank you very much, kelly. Mr. Mcclendon died earlier this morning in a single car crash on a country lane in Oklahoma City, and here is the spokesman packo baloramma. He pretty much went through a well. Right before colliding into the embankment. There was plenty of opportunity for him to correct or get back on the roadway, and that didnt occur. He went straight into the embankment and ultimately died from his injuries, we believe. The car, of course, was engulfed in flames. Mr. Mcclendon was 56 years old. The indictment was handed he was due to appear in court this morning or midmorning. Keep in mind he denied it vehemently. According to the Justice Department there were Companies Involved and the companies decided who would win the leases. The winning bidder allotting an about the to the other company. That was the allegation of bid rigging and lease rigging for oil and gas properties. He said that he did not do that, he is going to defend his reputation, he had retained an attorney for that purpose. However, earlier this morning, the private equity fund energy and Minerals Group told their investors they were season all operations with Chesapeake Energy corporation and mr. Mcclendon based on the allegations of the antitrust law and the violation thereof. They say they would not do any further business with mr. Mcclendon and they had invested 3 billion in ventures with mr. Mcclendon since he left chesapeake. The indictment alleges that he orchestrated what they call a quote unquote campaign to keep bid prices down from the years 2007 to 2012. Mr. Mcclendon says he did not do that. He was claiming if indeed they carried through with this indictment, he would be the first gas and oil industry executive in more than 110 years to be charged under the sherman antitrust act. Violations of the sherman antitrust act would carry a maximum penalties of ten years in prison, so kelly, they have confirmed that the body they recovered this morning was 56 years old former chesapeake ceo augustry mcclendon. Lets get more on this, jim, you knew the man, spent time with him, knew the story, and still obviously just trying to make sense about what happened. About a dozen years ago, he came to me, went out to dinner and said were going to be Energy Independent in this country, and i laughed, and he said, no, you dont understand how much oil and natural gas and what we can do with technology, i need you to understand this, because i think you would be openminded enough to believe it. We had a bunch of dinners together, and i said lets take a look, he came on the show multiple times, was dead right about everything. He did not necessarily game it correctly. He almost lost the company with a huge margin call. Came on a second time when he was under heath from shareholders, was always willing to speak the truth. Was he a gambler . Absolutely. Did i like him . I liked him very much. I thought he was a really good guy. I know you tried to reach out last night and didnt hear back. I said, come on the show, man, you always do. Tell it like it is, like you always do, because im sure theres another side of the story. You know, aubrey was different. I said, what are you doing with all this selfdealing stuff and the wine collection . Cmon, man, just man up, stop it with this stuff. He would say, theres other sides of the stories. Im not saying anything that wasnt public, but in the end when i asked him to come on and tell people who are watching mad money to not use marge, he came on and said im the poster boy to not do that. When he went to the utica shale, he wanted to show me every kid who a a job, he was building something and no one even knew about utica. He snuck in and got a lot of leases. I remember him telling me about hainesville. He was always one step of the game, admitting he was more of a financier than an oil man. You hated him or liked imhad. I was in the latter camp. I own that. Im proud of that, and i hope his family is doing okay. The guy had a vision. He had a lot of mistakes that he made, he made a lot of wrong choices, but he had a vision and he was up front with us every time he was on. You mentioned how proud he was of the jobs he created. There were reports he would put in the newspaper the pictures he had hired just drawing taken to highlight what we are doing local, you should be excited about this areaened a the prospects, and his attention to detail and other matters. Looking at the peanuts in his restaurants and all different stories. I just wonder to your point a moment ago good, what was his next chapter intended to be with the new firm . He was worried about this one. He was on the wrong side of this trade. He kind of knew it. It was hard to raise money. I said, show me worth, will you . Show he would say, this guy got 1500 per and they were like dirt poor farmers that he had found oil on, and natural gas mostly. He thought utica had more oil than natural gas. He got that wrong, but boy did it ever have cheap natural gas. He was always trying to sigh look at the jobs were creating, natural gas, cleaner fuel than coal. In return he would admit he did things wrong, and he would say stuff like his lawyer is dying, but he really didnt have handlers. He just told it like it was, and sometimes he was dead wrong, and sometimes he was dead right, but with this show, he was always honest. Thats what i liked about him. Changed the country. I am missing him. Thank you for joining us, jim. I know youll have more on mad money. Well have more on this story in just a few minutes. Other news of the day, were looking at the privacy versus security fight. Taking center stage at the security conference out in san francisco, or eamon javers is there. Hes joined by the defense secretary ash carter in a tv exclusive here. Eamon . Thanks very much. I am here in san francisco. Were at the rsa cybersecurity conference. Im joined by the secretary of defense. Thank you for being here. Thanks for having me. What is that board and what are you hoping to learn from the executives here on the west coast . Its a brandnew mechanism to advise my on how the department of defense can Better Connect to americas great innovative community. The reason to do that is our military, the finest fighting force in the world thats ever known today, one of my jobs is to make sure that its that way, 10, 20, 30 years down the road. Weve always had two great things. Weve had our wonderful people. They all volunteer for us, and the second is the connection to american technology. We need to keep that connection going. Eric is going to help me think about and implements ways of do that. Im grateful to him. Hes one of the Great American innovative minds, and hes willing to do it, willing to spend his time helping us to do what we are trying to do, which is protect the country and make a better world for our children. Youre here in the apple fbi fight is going on. The tension between Silicon Valley and washington, d. C. Is probably as great as maybe its ever been. I wonder what youre hearing in your private meetings. First of all, im not discussing that particular case, its a Law Enforcement matter, not a defense matter, but to the general question of the relationship between the Public Sector 24 i represent and the innovative center, i think what im hearing here certainly is the wickness to reach out in the other direction. And the req any that the only way that were going to have Data Security of the kind that we all need and that the department of defense very much needs is in cooperation together. So im trying to build bridges between washington and Silicon Valley. Is there a lack of truth . It seems like theres a deep sense of suspicion, possibly. Its mixed. Some are not familiar with the and thats simply being here and connecting them to us and our mission, but what i find is that people who are out here at this conference, and part of the tech sector, theyre doing what theyre doing for a reason. That is that they want to do something that matters, that has consequences, that makes a difference. When you familiarize themselves with the mission of national security. My experience is that overwhelmingly, they recognize thats an important thing to do. They like to make a contribution. They recognize that technology is a critical part. We just need to show them a way that we can cooperate. One of the ways, you and pentagon officials talking about offensive side of war against isis in syria and iraq. I know you cant talk a lot about the details of what it looks like, but can you give us a picture of what does that mean . Okay. Remember this is in a theater of war against isil, which were combatting and going to defeat. Its always been part of you attack command and control, maybe a bomb, maybe you send radio frequency jamming radars and so forth. In the cyber age, their ability to command their forces, ability to repress these pope laze on the territory think occupant . You can undermight be that via cyber. We are doing that in the theater of war. Where do you draw that line between the theater of war and the overall internet. In youre conducting operations there, would that spill over to facebook posts or were very careful how with do this. We do that in bombing campaigns, but isil hag to be defeat defeated. To find out where the cybervulnerability are. This is something that a lot of companies do. Its a way of essentially getting the white Hat Community to help you protect yourself against the black Hat Community by telling you where youre vulnerable. A lot of companies do that. S in defense defense a best practice that i might boffo to our advantage . One thing theyll get is is theyll get a reward for having hacked the pentagon. I think thats why most people are doing it. They want to help us, and they think it would be a very conspicuous achievement. Generation or more ago, one of your predecessors said whats good to america is good for general motors. That was in a very different era. Today we have multinational. Can you say that same thing today about our most powerful and Important Company today, apple . Is whats good for america also good for apple today . In general, the Companies Represented here at this meeting benefit from things that the United States and United States only has provide d the other is the wonderful innovative environment. But also the environment of freedom and security. If you look around the world and say where else that can be provided . Yes, theyre all multinational companies. We have competent security institutions, our depend of defense is wonderful at protecting our people and protecting a lot of friends and allies around the world. Most of the people recognize it takes a climate of stability in which to operate a global business. Thats the environment to provide. By the way, i guess in the old days ford used to sell cars overseas, and thats good. Its good for the United States. Our job is to protect the environment in which after of that can occur. Thank you for joining us. Thanks for having me. Back over to you, kelly. Mr. Secretary, thank you. And well have more details on Aubrey Mcclendons death. Were back in two. An weve been reporting, a sing ofcar accident p. Aubrey mcclendon has died. One days after he was and lease rigs, allegations that he vehemently denied, and he vowed to basically fight those charges he was 56 years old. The Police Department in Oklahoma City, pauko baldoramma saying he basically went into a wall. Theyll be analyzing the Computer Data from that particular vehicle. There were no witnesses, though there were First Responders on the scene very quickly, so one of the questions is, did someone call in that accident . Or did the cars computer notify First Responders about that . Weve been talking about reaction coming in, and heres a statement from t. Boone pickens who said ive known Aubrey Mcclendon no nearly 25 years. He was a major player in leading the Stunning Energy renaissance, he was charismatic, a true entrepreneur. No individual is without flaws, but his impact on American Energy will be longlasting. The department of justice and incidentally mr. Mcclnden was due to appear in court later this afternoon on the indinlts. The department of justice we offer our condolences to his family and loved ones. He leaves behind a wife and two grown daughters. In addition to that aelp says they confirmed that earlier today their founder died in an accident. His industry leadership, vision and passion for the industry had an impact on the community, the country and the world. We are tremendously proud of his legacy and will continue to work hard for the unmatched standards he set. Kell deeply mourn his lost, please join us in expressing condolences to his family. He was a wildcatter certainly, one of the first to go owl and buy wholesale parcels of land through the United States and had to do that through very creative financing. That really reshaped the industry and the shale industry in particular. Chesapeake is deeply saddened and our thoughts and prayer are with the family during this difficult time. Here with he at post 9, mike san tolli, look with stephanie. I havent had a chance to hear your thoughts yet. Obviously an unfortunately unfortunate turn, but this is kind of how these booms and busts get mirrored. His personal, thats always the person thats always lead ago commodity boom. The way you lead is you go all in. You best the most boldly of anybody doing it, because commodities are commodities. You dont have a better mousetrap, you just play bigger, harder and longer. When you have the bust phase, everyone examines the excesses and you go back and see where lines were crossed or not, and then you have the Justice Department cases really a sad turn, when you had this one person who was the face of this entire phase of economic development, really. You may agree with his strategy or not, but he certainly was this visionary. He was talking about shale fracking before we even know what those words were. He really understood the industry and he went all in. He was a capitalist. That was his personal. The in editor of the newspaper there. Adam, what else have you guys learned at this hour . Well, were trying to were following the story, looking at the reaction in the community. Aubrey mcclendon was very involved in the community, about you created and led two companies in Oklahoma City, chesapeake and American Energy partners, also a very large contributor to united way, has his companys names on the arena in downtown Oklahoma City, on the riverwalk, and has been very much involved in Community Projects and companies throughout Oklahoma City. So theres a lot of reaction today from Civic Leaders and Community Lead eers very sad to hear of the news today. Some analysts were displeased, and oklahoma still was transformative. Theres a lot of questions being asked about what the other company that is unnamed in the indictment so star, does it seem as if the business itself is really back on its heels or not . Well, the Energy Industry is very much down right now. Commodity prices have fakeded all the Energy Companies chesapeake has a new leadership team. Have moved on and have ground and focused quite a bit on moving to a different phase in that companys growth. Mcclendon really led the land grab and growing the company under the current leadership, chesapeake is much more focused on the finances and drilling where they were mcclending moved on to American Energy partners, which has developed companies and resources throughout the United States and argentina, mexico and australia, so they have continued to grow, but yeah the low Energy Prices over the past year and a half have definitely had an effect on those two companies and the rest of the Energy Sector and the rest of the community. Adam, any stories you can share from your interviews over the years with aubrey . Yeah, he was always very accessible. The last few years a bit more private, but very much had been previous to that had been a resource for me and for others in the community aggressive on certainly his contributions in the community, but also in just his willingness, at least in the last few years, willingness, he was involved on different boards, panels, spoke to you mentioned his involvement in Shale Development, and he was very outspoken in educating other companies, and, specific leaders on how that process worked . Before we let you go, adam, who do you think steps into the void for Oklahoma City now . Well, there are other Energy Companies. As we mentioned earlier, the downturn in Energy Prices has had a big effect on that. Well have to see where those prices go. Adam, thank you for joining us. Well have much more on the story for you after a short break. Td ameritrade, they work hard. Wow, that was random. Random . No. Its all about understanding patterns. Like the mail guy at 3 12pm every day or jerry getting dumped every third tuesday. Jerry every third tuesday. We have Pattern Recognition Technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. Td ameritrade. Our top story, were joined by paco balderamma. We pressured you calling in. Everybody is wonders if theres new information . Theres new information. We were able to retrieve the black box from the vehicle that was obviously incinerated, so that should shed more light into what actually happened, how fast he was going. We have determined that he was not wearing his seat belt just prior to the collision. But still, a lot of unanswered questions. What time did the wreck occurred . 9 12 a. M. Here central Oklahoma City time. We had several people call in saying a vehicle had been involved in a bad wreck. Mr. Mcclendon was traveling northbound in a 2013 chevy tahoe when he went left of center on midwest boulevard, went offroad, and collided into a support wall off west side of the underpass. The vehicle immediately burst into flames, and obviously people called 911, we responded, but unfortunately he was pronounced deceased at the scene. Paco, can you walk you the timeline, what things to expect . Sure, stephanie, basically early next week the accident record should be completed. The black box is the thing thats most helpful. Surprisingly i just took a look. Im very surprised we were able to retrieve anything from it, because it was partially melted from the heat of the vehicle. That will give us more information from the exact speed, whether he hit his brakes, things like that. We want to be as respectful as we can to his family, and he does have a lot of people he knows, and they love him here in the Oklahoma City area. Mrs. Mike santoli, obviously you havent been ability to reconstruct everything that occurred here, but do you know if he was leaving home . Was he heading back to home . Is there any way to retrace exactly what brought him to that point . Sure, mike. My understanding is that he has a farm very close to that area. So we dont know if he was leaving, going someplace else or exactly where he was going. He was traveling northbound. He was supposed to turn himself in at 11 00 a. M. Here, and obviously that didnt occur, because he wrecked at 9 15. Thats the timeline. We were able to determine really within an hour who the victim was, and then obviously made it a priority to notify his family of the unfortunate events. Was he heading out of town or into town . Well, no, he was going towards the edmund area. Oklahoma city is centrally located. Edmund is north. He lives just north of Oklahoma City, so i dont know where he was going, honestly. What can you tell us about that route, if anything . Any reason have you had any previous experience of people speeding, losing control of a vehicle, anything like that . Speed limit is 50 miles an hour, a twolane road, and south of a major turnpike going into tulsa. Yeah, we have accidents. Its very possible he had a medical episode just prior, and thats why he went left of center. We just dont know. Unfortunately we may never know. What we do know is that we recovered the black box. We also know that speed was a factor. We believe he was traveling well above the 50 miles per hour, and probably would have survived the crash if he would have been going a little slower or the speed limit. Appreciate you joining us. Bringing us up to speed on the latest. Well have more for you, and well continue to follow the story of Aubrey Mcclendons shocking death earlier this morning in Oklahoma City. Et and. The championship game ball . That was sebastian diaz. Good guy. And all i had to do was ask for their money and pretend i was investing it. Their life savings is now my lifestyle. Female announcer dont let someone else live the life youre saving for. Find out if youre dealing with a registered investment professional at investor. Gov. Its a great first step toward protecting your money. Before you invest, investor. Gov. Our top story today, a shocking death, were now joined on the phone by john gurtis. John, do you know him . I do. I met him in 94, 95, about 20 years ago. He was 25 years old, he spend his entire life in the business. He took a business and grew it effectively into the second largest gas producer in the country. In many respects typifying american industry. At what point do you remember him telling you, hey this could change the country . It wasnt long after their founding, really in the 2000s, and keep in mind he and his organization essentially sdoufrd the hainesville shale. So he was early with this, and not only early in the but also in terms of discovering additional Gas Resources. This is a person who was vastly curious, a very intellectual person, very driven, scienc sciencecentric, and in the van guard of the evolution of Gas Resources in this country, with obviously essentially global implications. What happens to his last company he was involved with, American Energy partners . You know, to answer the yes question, i dont know. I have not been that close to entities. Obviously the industry is in tremendous financial stress, and those businesses were heavily debt capitalize. All these organizations have many capable people, but this is an incredibly unique individual, very visionary. Hes very much a deep thinker about where the try and these companies were going. This is not a replaceable individual. John, mike san tolli here. Of course we dont know if this is the case, but if we can suppose for a moment that theres some truth to the Justice Department case here, that there were some corners cut, how crucial do you think that is for chesapeakes Financial Success if that were the way that business was done there . Thats impossible. I understand the question, but its impossible to know. Theres so many subtleties, i think we all morally understand what is generally right and wrong, at least you hope so. This is a very dealing intensive industry. Aubrey crew up as a land man. A land man is a deal make. Actual push the nfl, but i would not suggest the whether it was pushed on the margin or not, it still would have been you cantly the sect larger gas producer in the industry. And after he was able to identify the opportunity and go after it, of course then everybody else followed suit. John, what do you think the next chapter was . What do you think he intended with his new firm . He was looking at argentina. He was looking at things in south africa. There were a number of places globally that have prospectivity for gas shale resource. So they were starting to look internationally at potential nodes of opportunity. Thats an element of it, and obviously continue to evolve in the u. S. The prosecution of Shale Development and its newers entities, but i think what was a recent vision was starting to look at international domiciles as well. John, thank you for calling in. Up next well have more details on the former Chesapeake Energys exec. Closing bell is back in two. We were born 100 years ago into a new american century. Born with a hunger to fly and a passion to build something better. And what an amazing time its been, decade after decade of innovation, inspiration and wonder. So, we say thank you america for a century of trust, for the privilege of flying higher and higher, together. We believe in the power of active management. 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I am not. But i can customize Training Programs based on biomarker data. Watson, thats pretty impressive. You might say i am the Serena Williams of cloudbased cognitive systems. Nah, i wouldnt go that far. Welcome back. Our top story of the day, Aubrey Mcclendon, you just heard analysts speaking of him calling him someone who really cant be replaced. He changed the world, and in so doing, radically changed the landscape of Oklahoma City. Eric joins us with more details. Obviously the last guest talked about how he was a deal maker and sometimes he would push things a little far, that was very similar to his approach with the coowners of the Oklahoma City thunder. They were the seattle super sonics at first and there was controversy about moving them. Publicly they want they werent going to do it, and mcclendon eventually got fined, because he started commenting saying we didnt buy the team just to keep them in seattle. Youll remember a lot of corporate celebrities like howard shultz, he was the owner, a starbucks owner, sold it to the group, because he thought they were going to keep them in seattle. They were able to move the team and thats gotten the city a lot of attention actually because of the value and good play of the thunder. Eric, they also have to continue i think paying to put chesapeakes name on that stadium. Chesapeake no, youre right. Its a tricky deal there. Because tom ward was the cofounder of chesapeake, and he also bought the team with mcclendon, but ward is not partnership of the Ownership Group anymore, so there was a lot of dealings, and it went back and forth, but chesapeake is the naming sponsor of Oklahoma Citys building. We dont know what happens to that and we dont know what happens to his ownership sake. The thunder said they would send out a statement later today. But as you said, he owns about 20 of the team . Clay bennett is the primary owner. Mcclendon was the second tier. There were about eight total owners all involved in this partnership. Just a capstone in some ways to the way the Oklahoma City change grew, and flourished before his very success brought those prices crashing back down. Thank you a lot, eric. Well have more when we come right back. This just got interesting. So why pause to take a pill . And why stop to find a bathroom . Cialis for daily use, is the only daily tablet approved to treat erectile dysfunction so you can be Ready Anytime the moment is right. Plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. 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Choose the lowest and hit purchase. Now. If youll excuse me, im late for an important function. Compare. Com. Saving humanity from high insurance rates. Welcome back. Carl icahn releasing a statement on Aubrey Mcclendon. Icahn with involvement in chesapeake. Seema mody has more. Seema . Thats right. Carl icahn, the biggest shareholder in Chesapeake Energy and weve been following the reaction to Aubrey Mcclendons death from individuals in the energy space and activist investor carl icahn tweeting out Aubrey Mcclendon was one of the brightest men ive ever dealt with. Ive personally always found him to be a gentleman in our interactions. Carl icahn calls to say im saddened to have heard the news and as i said, kelly, Icahn Associates holds an 11 stake in chesapeake and, of course, they have an active investor in that stock. Back to you, kelly. All right. Seema, thank you. You know, were just asking again about a couple of things. Chesapeake the company itself obviously but, again, his involvement with that ended a couple of years ago. Chesapeake has put out a statement as well today but pretty much, you know, that kind of says all you need to hear from the company on that front. Without a doubt. Whats interesting about icahn. Hes one of the guys, its all business, right . This is not about i think youre a bad person, im going to attack your can. I think youre a bad allocator if you have issues with how you manage it. And i think its interesting that everyone can acknowledge this guys instrumental role in basically creating an industry even though he seems to have kind of overstepped, got himself into some financial trouble and other kinds of trouble as well along the way. Remember when the icahn news hit, we were all so surprised because chesapeake stock was in a free fall at the time so we thought, okay, maybe icahn is seeing something we dont. Clearly he was putting his money with mcclendon with the team and assets that he built. Maybe it was or wasnt with mcclendon but it was the assets he felt that were very valuable that mcclendon was really very responsible for having and putting into the company. All right. Were going to wrap up the day on wall street. Have a little bit more energy news for you too, when we come right back. Earned you miles to get to the places you really want to go. With the united mileageplus explorer card, youll get a free checked bag, two united club passes, priority boarding, and 30,000 bonus miles. Everything you need for an unforgettable vacation. The united mileageplus explorer card. Imagine where it will take you. The access informationlows us to from anywhere. The microsoft cloud allows us to scale up. Microsoft cloud changes our world dramatically. It wasnt too long ago it would take two weeks to sequence and analyze a genome. Now, we can do a hundred per day. 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Sliding oil prices biting into profits. Becky quick sat down with Rex Tillerson of exxon mobil and asked about the future of his dividends. When we make decisions about the financial structure of our company, the divestants programs, were really thinking about 20, 30 years out and were thinking about the longterm shareholders and we know the dividend is extremely important to them. The dividend is safe. We have, again, as part of what we feel is the obligation to our shareholders. And youre going to hear that, guys, from the exxons and chevrons of the world. What kind of impact, as much as other companies have said that, bhp had said basically im going to slash the dividend over my dead body and then did, so how much why is it so important, mike. What would be the impact on the stocks if he couldnt honor it. As it comes to exxon, tremendously heavily owned stock among individual investors. This is not really a stock that hedge funds and many actively managed mutual funds own so clearly they own it for the dividend. By the way, the market has been telling you exxon was the last of the majors that you had to worry about. Its yield is 3. 5 and chevron 5 and for Conoco Phillips to cut its dividend, close to 8 , so the market kind of figures out who can sustain a dividend at these levels and who cant. Exxon with its Credit Rating sold 12 million in debt in a blink just last week. Obviously it has the capacity to pull levers and do it. I think this price in oil in what weve seen the last year, year and a half, dividend cuts, buyback suspensions, capital rayss, exotic capital raises coming a mile a minute. 12 billion or so the last week so i think the companies are getting a pass. If you notice for a day, the companies that come to the equity market, stocks are down 4 has, 5 , 6 and then they rally because the Balance Sheets are there for stronger, right . So if exxon and chevron, the two real behemoths, if they have to cut, that tells you how bad things really are, but i think this will get a pass after the initial shock. Catch beckys entire interview with Rex Tillserson tomorrow morning at 6 00 a. M. Not one you want to miss, talking to Rex Tillerson. Meantime, mike, everybody is still trying to track the Oil Price Stock market correlation today. Yeah, it actually, you know, was wavering around the flat line on both of those things and its loosened up a little bit. A few bucs off the low a little less tenuous but actually overall today was kind of a sneaky strong day. You close near the highs. You would have expected the market to just kind of sleep off yesterdays party a little bit more, but below the surface, more stocks up than down. I do think people still feel like they are positioned very defensively. By the way, heavily shorted stocks were screaming higher, hunting the bears today. I think the Economic Data this week has been pretty okay. I mean, the ism and auto sales, construction spending, adp, i mean, auto sales to me was the biggest shock honestly because everybody has been talking about it peaking and its stayed pretty strong so people feeling a little bit better, not rushing out and getting really aggressive and seeing the rotation in industrial sectors and energy because industrials are getting better, no worse. Just tactically speaking, makes sense for the market to get up to the threshold level, 2000 on the s p or the upper end of the range before the big jobs report. Brings us right to that big report. You know. Theres a lot at stake, mike. Lets just say theres a disappointment what happens. An undershoot on a number of jobs. I actually think that might be okay if were still above 100,000 or so. Massive undershoot i think you have to start asking questions if that one key component of the recovery, the labor market is in trouble. The treasury market, by the way. Doing okay. Well, they are kind of preparing for a strong number and for the fed to be back in play, right . Watch the wage number. Thats going to be very important. Stephanie link, michael santolli, appreciate it. That does for us on closing bell. Fast money begins right now. Fast money does start right. Live from the Nasdaq Market site overlooking new york citys times square im melissa lee. Traders are peter najarian, steve grasso, brian kelly and guy adami. Doesnt a big bubble just burst on the market but it shouldnt scare you just yet because one strategist says that very thing could spell big gains for stocks. Well explain. Plus, from first to worst, the best performing stock in the s p is now officially in bear market territory. What that is and whether traders are betting on a turnaround. But, first, we start with a breaking news on former Chesapeake Energy ceo Aubrey Mcclendon and lets get straight to sue herera with the very latest on this developing story, sue . An accident happened earlier this morning about a