Southwestern Energy falls after $7.4 bln deal with Chesapeake Energy

CHK Oil

11/01/2024 11:44

** Shares of natural gas producer Southwestern Energy
 SWN.N  fall 4.5% to $6.58 premarket
    ** Chesapeake Energy  CHK.O  will buy SWN in a $7.4 bln
all-stock deal, offering $6.69 per SWN share held, representing
a discount of 3% to the stock's last close, according to Reuters
calculation
    ** SWN shareholders to receive 0.0867 shares of CHK common
stock for each share of SWN common stock outstanding
    ** CHK shareholders will own ~60% and SWN shareholders will
own ~40% of the combined co on a fully diluted basis
    ** Deal expected to close in second quarter of 2024
    ** Shares of CHK marginally up at $77.78 amid low volumes
    ** SWN gained ~12% in 2023

 (Reporting by Vallari Srivastava)
 ((Srivastava.Vallari@thomsonreuters.com;))