January 16, 2024 | Energy | North America | Active
In the wake of a series of oil and gas deals in 4Q’24, Chesapeake Energy sustained the industry’s M&A momentum by signing a definitive agreement on 11-Jan-24 to acquire its rival, Southwestern Energy, through an all-stock merger. The terms stipulate that Chesapeake will offer 0.0867 of its shares for each SWN share, which values SWN at $7.4bn, or $6.69 per share, based on the previous day’s closing. The consideration implies a slight 2.9% discount versus SWN’s previous day’s close of $6.89 on 10-Jan-24, and a 4.5% premium to the target’s share price on 4-Jan-24, the day prior to Reuters reporting on a potential deal. Speculation of a combination first emerged through a Reuters report in mid-October 2023, prior to which SWN shares were trading slightly lower, at $6.77 on 16-Oct-23. Chesapeake shareholders will own approximately 60% of the combined company, while SWN shareholders will hold the remaining 40%. The composition of the 11-member board will consist of seven members from Chesapeake initially and four from SWN. Leading the firm will be Chesapeake’s current CEO, Nick Dell’Osso, and the new headquarters will be in Oklahoma City, where Chesapeake currently operates. The deal has been approved by ...
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