Chesapeake Energy eyes $12-bln US gas acquisition

USA

OKLAHOMA CITY, October 20, 2023 – Chesapeake Energy Corporation has entered preliminary talks with Southwestern Energy to discuss the possibility of a USD 12-billion acquisition that could create the USA’s largest natural gas E&P company, Reuters reported on Tuesday.

Southwestern Energy’s assets are mostly in Appalachia’s shale formations and the Haynesville Basin in Louisiana. Chesapeake Energy Corporation also has plays within these regions.

Should the deal go through, the merged company would overtake EQT Corporation as the USA’s largest gas-focused upstream entity.

In 2021, the company emerged from bankruptcy and is now valued at USD 13 billion including debt.

The deal would be part of recent acquisitions in the USA’s upstream segment, including ExxonMobil who recently agreed to acquire Pioneer Natural Resources for USD 60 billion.

In August 2023, Chesapeake Energy Corporation agreed to sell its remaining Eagle Ford assets to SilverBow Resources for USD 700 million.

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