A Seismic Shift in Natural Gas: Chesapeake and Southwestern Merge to "Redefine" the Industry
Dust settles on a tectonic shift in the natural gas realm. Chesapeake and Southwestern, industry giants, have merged, birthing a "natural gas behemoth" reshaping the landscape. This union boasts an unrivaled 1.2 million acres, spanning Appalachian and Haynesville shales, and promises access to hungry European markets. With doubled market size and secured Oklahoma jobs, the deal's tremors are felt far and wide – a "redefining" moment for the gas industry as we know it. Buckle up, the gas map is being redrawn.
Chesapeake Energy merger with Southwestern to 'redefine' the industry
That's according to Nick Dell'Osso, Chesapeake president and CEO, who announced the anticipated merger Thursday.
Some details of the merger of Chesapeake Energy and Southwestern Energy
Dell'Osso said the merger will create an "unparalleled natural gas portfolio" of 1.2 million acres in the Appalachian shale formations in Pennsylvania, West Virginia and Ohio, and the Haynesville shale in northwest Louisiana, northeast Texas and southwest Arkansas.
Chesapeake Energy merger with Southwestern Energy will create a 'natural gas behemoth'
The merger will create a "natural gas behemoth" capable of tapping numerous arrangements the two have with exporters to get more natural gas overseas to energy-starved markets in Europe and elsewhere, Dollarhide said.
"With its modest premium and increased exposure to the Haynesville by adding Southwestern’s high-quality acreage, plus financial accretion, the acquisition looks like a winning deal for Chesapeake," he said.
This acquisition will double the market size of the company, and it secures future employment here.
State Sen. Kristen Thompson, R–Edmond: “This merger is an exciting opportunity for the state and the company.