Chesapeake Energy Corporation and Southwestern Energy Company announced that they have agreed to merge in an all-stock transaction valued at $7.4 billion. Under the terms of the agreement, Southwestern shareholders will receive 0.0867 shares of Chesapeake common stock for each share of Southwestern common stock outstanding at closing.
The combined company, which will assume a new name at closing, will be positioned to deliver affordable, lower-carbon energy to meet growing domestic and international demand.
“The world is short energy and demand for our products is growing, both in the U.S. and overseas. We will be positioned to deliver more natural gas at a lower cost, accelerating America’s energy reach and fueling a more affordable, reliable and lower carbon future,” said Nick Dell’Osso, Chesapeake’s President and CEO.