Nick Dell’Osso
Editor’s note: This profile is part of Hart Energy’s Hall of Fame series honoring industry pioneers and the Agents of Change in Energy (ACEs) who are leading the energy sector into the future.
Expand Energy CEO Nick Dell’Osso joined Chesapeake Energy four years after earning an MBA in finance from The University of Texas’ McCombs School of Business and two jobs as an investment banker at Jefferies and Banc of America Securities Holding Corp.
Then came Chesapeake with an offer in 2008 to lead finance at its midstream business.
“Given, up to that point I had been a consultant and banker, I call this
my first ‘real job’ and have loved every minute of it,” he told Oil and Gas Investor.
Dell’Osso took his first “real job” and ran with it. After two years running Chesapeake’s midstream finance division, he was promoted to executive vice president and CFO in 2010. He earned the top job in 2021, replacing Doug Lawler as CEO.
During the years in between, Chesapeake, the world and the energy industry changed dramatically.
The company, a game-changing natural gas producer founded by Aubrey McClendon and Tom Ward, pivoted toward diversifying in the way of adding oily assets to its portfolio in 2018. Chesapeake bought WildHorse Resource Development, a newly public producer in the South Texas Eagle Ford Shale, for almost $4 billion.
The COVID pandemic that began in 2019 shook the global economy—and energy with it—to its core. The following year, Chesapeake was one of dozens of E&Ps that filed
for bankruptcy.
Then Lawler moved on, Chesapeake emerged from bankruptcy with a renewed focus on gas and Dell’Osso stepped up in 2021. He set out to clear Chesapeake’s debt, retool its corporate strategy and fine-tune its natural gas operations. Within 24 months, Chesapeake had achieved all of that and more. The firm generated more than $1 billion worth of free cash flow by the midpoint of 2022.
But Dell’Osso and his team weren’t finished with Chesapeake’s makeover.
Amid a wild run of consolidation that has consumed the upstream sector for more than a year, Chesapeake announced its $7.4 billion merger with Southwestern Energy. The deal closed in October, completing the transformation of Chesapeake from its post-bankruptcy doldrums into a powerhouse rebranded as Expand Energy, the largest gas producer in
the U.S.
“Merging Chesapeake and Southwestern to form Expand Energy has been the biggest challenge of my career and my greatest highlight,” Dell’Osso said.
Having to close the deal under the Biden administration’s aggressive Federal Trade Commission (FTC) scrutiny slowed the merger’s roll.
“Driving the deal was difficult, but bringing together two company cultures is the larger task. We used the delayed time with the FTC approval process to work together on our integration and the result is a talented team focused on synergies and thoughtful disruption of standard practices,” Dell’Osso said. “We’re taking a ‘best of both’ approach to help ensure we integrate the premier programs, practices and policies from each organization. We are absolutely focused on and expect to achieve a 1+1=3 result.”
Steady in a cycle
Dell’Osso’s focused, cool-under-pressure manner is evident throughout the major events of his career. When he was appointed CEO, he accepted the role with confidence in the company’s team.
“Chesapeake has always had strong talent, and that’s the foundation we built upon as we’ve formed Expand Energy,” he said. “With the right people, we can overcome anything, including remaining steady in a cyclical industry.”
His leadership style is designed to inspire the right people.
“I believe you get the best outcomes when everyone has a seat at the table. I don’t focus on hierarchy or titles; I want the right people in the room, and I want to listen to and learn from all levels of our organization,” Dell’Osso said.
It’s also important that the team understands the company’s purpose and feel a sense of ownership over its future.
“We’re delivering critical energy to markets in need and helping address one of the great threats to human prosperity. We need to put people in positions to be successful, trusting their expertise to help us collectively reach our goals,” he said.
Having spent the vast majority of his career as a producer, Dell’Osso has faith in the industry’s ability to make an important impact in the world. And that’s a key selling point the oil and gas business can use to attract a top-notch workforce and excite young talent.
“There’s no better place to be than the energy industry if you want to make a difference. Our industry needs the best and brightest working together to solve global energy poverty,” he said. “Beyond encouraging them with our purpose, I would recommend they dive into their roles, work in different areas to gain experience and take ownership of their responsibilities. Also, I’ve found that the most innovative thinkers are well-rounded people with full lives. A thriving career and an enriching personal life should not be mutually exclusive.”
That’s something he learned from his father. Dell’Osso said his family has always been the biggest influence on his life, but his father particularly made an impression by demonstrating the value of hard work and a serious approach to responsibilities. At the same time, he added, work-life balance is important.
Dell’Osso’s commitment to the cause of alleviating energy poverty is palpable. He believes in the ability of natural gas to make transformative change. The industry never ceases to surprise him, with its constant rate of change and ability to innovate and evolve. From where he began in 2008 at Chesapeake to now as Expand’s CEO, he has seen remarkable improvements in safety, efficiency and potential to move humanity forward.
“Billions of people across the globe lack access to affordable, reliable, lower carbon energy, which is critical to human quality of life and prosperity. Addressing this crisis is arguably one of the world’s most defining challenges,” he said.
“As the largest natural gas producer in the U.S. and a top producer globally, Expand Energy has a responsibility to lead. We have some incredible advantages to help us deliver—specifically our scale, balance sheet and talent. However, these opportunities will not be enough to meet our objective. We must disrupt our own business model, using our strong foundation as a catalyst to more efficiently reach markets in need.”
—Deon Daugherty, editor-in-chief