Chesapeake Energy announced plans to acquire Southwestern Energy in an all-stock deal valued at $7.4 billion. The transaction will see Chesapeake offer $6.69 per share of Southwestern Energy stock, a 3% discount on the stock's previous closing price. The merger aims to make Chesapeake the largest natural gas producer in the US by output and market capitalization, surpassing EQT Corporation. The deal extends consolidation in the US energy sector, following multi-billion dollar acquisitions by ExxonMobil and Chevron recently.
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00:00 It's Benzinga and here's what's on the block.
00:02 Chesapeake Energy announced plans to acquire Southwestern Energy in an all-stock deal valued
00:07 at $7.4 billion. The transaction will see Chesapeake offer $6.69 per share of Southwestern
00:15 Energy stock, a 3% discount on the stock's previous closing price. The merger aims to
00:20 make Chesapeake the largest natural gas producer in the U.S. by output and market capitalization,
00:25 surpassing EQT Corporation. The deal extends consolidation in the U.S. energy sector,
00:32 following multi-billion dollar acquisitions by ExxonMobil and Chevron recently. Chesapeake is
00:37 seeking to boost its natural gas focus after emerging from bankruptcy in 2021, and this
00:42 acquisition adds Southwestern's holdings in key shale basins. The transaction is expected to close
00:48 in the second quarter of 2024, with Chesapeake shareholders owning around 60% of the combined
00:52 For all things money visit Benzinga.com
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