Chesapeake Energy rises after $7.4 bln deal with Southwestern Energy

Southwestern Energy Co

11/01/2024 15:06

(Updates)
    ** Shares of natural gas producer Chesapeake Energy  CHK.O 
climb 3.2% to $79.62 in early trading
    ** CHK will buy Southwestern Energy  SWN.N  in a $7.4 bln
all-stock deal, offering $6.69 per SWN share held, at a discount
of 3% to SWN'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 company on a fully diluted basis
    ** Deal expected to close in second quarter of 2024
    ** CHK CEO Nick Dell'Osso will head the combined company
    ** "The transaction will create the largest pure play
natural gas producer in the United States... with the combined
market cap likely opening the door for S&P 500 inclusion" -
Tudor Pickering Holt analyst Matt Portillo
    ** Shares of SWN drop 2.4% to $6.73 
    ** CHK fell ~18% in 2023

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