Chesapeake and Southwestern Energy Announce $7.4 Billion Merger

The deal, expected to close in Q2 2024, will create one of the largest natural gas producers in the U.S., with a market value of about $24 billion.

Chesapeake Energy and Southwestern Energy have announced a merger in a $7.4 billion all-stock deal, forming one of the largest natural gas producers in the U.S.
The deal is expected to close in the second quarter of 2024, creating a company with a market value of about $24 billion.
Chesapeake shareholders will own about 60% of the combined company, while Southwestern shareholders will own approximately 40%.
The merger follows a series of consolidations in the U.S. oil and gas industry, including ExxonMobil’s acquisition of Pioneer Natural Resources and Chevron’s purchase of Hess in late 2023.
The combined company will have a large natural gas portfolio and 15 years of inventory, and is projected to have approximately 20% improvement in dividends per share over five years due to significant synergies and greater pro forma free cash flow generation.