Chesapeake Energy says deal for Southwestern Energy to close early in 4Q (updated)

Southwestern Energy Co

18/09/2024 23:20

(Adds outlook for natural gas prices from paragraph 3)
       HOUSTON, Sept 18 (Reuters) - Chesapeake Energy's $7
billion acquisition of rival natural gas producer Southwestern
Energy is expected to close early in the fourth quarter, CEO
Nick Dell'Osso said on Wednesday. 
    The deal was delayed earlier this year after the U.S.
Federal Trade Commission requested additional information from
the two. Chesapeake announced the all-stock purchase in January
and originally had expected the acquisition to close by June 30.
    Dell'Osso said on the sidelines of the Gastech energy
conference that the U.S. natural gas market remains
oversupplied. 
        “We are going to be pretty cautious with how we think
about changing our supply picture until we see that (oversupply)
is no longer the case,” he said. 
  
        Chesapeake is producing about 3 billion cubic feet per
day of gas and when the Southwestern deal closes its output will
rise to about 7 bcfd, he said. 
  
         
  

 (Reporting by Georgina McCartney)
 ((Georgina.Mccartney@thomsonreuters.com; +1 469-691-7668;))