Top U.S. natural gas producer Chesapeake Energy cuts jobs

Southwestern Energy Co

21/05/2024 01:01

By Shariq Khan and Liz Hampton
       May 20 (Reuters) - Chesapeake Energy  CHK.O , a top U.S.
natural gas producer, began laying off employees this week after
completing the divestiture of its oil assets last year, the
company said on Monday. 
    This week's layoffs follow its divestment of its Eagle Ford
assets, not the company's pending merger with Southwestern
Energy  SWN.N , Chesapeake said. 
    The company did not specify the size or scope of the
layoffs. 
    Chesapeake in 2022 said it would exit the Eagle Ford shale
field in south Texas, making it a pure-play natural gas
producer.
    In early 2023 it sold some of those assets to INEOS Energy
for $1.4 billion, and later that year completed the divestiture
by selling the remaining assets to SilverBow Resources for $700
million. 
    The Oklahoma City, Oklahoma-based company is in the process
of completing a $7.4 billion merger with Southwestern Energy.
That deal is set to close in the second half of this year, later
than originally anticipated after U.S. Federal Trade Commission
sought additional information. 
    Natural gas producers have been hit this year by low prices,
which fell some 20% in the first quarter due to high inventories
and softer-than-expected demand. Chesapeake missed Wall Street
estimates for profit, and many companies - including Chesapeake
- have curtailed production as a response. 
    As part of that deal, the company will replace current
General Counsel Benjamin Russ with Southwestern General Counsel
Chris Lacy, according to a regulatory filing on May 7. 

 (Reporting by Liz Hampton in Denver; Editing by Stephen Coates)
 ((Liz.Hampton@thomsonreuters.com; +1 832 571 8115; Reuters
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