Chesapeake emerged from bankruptcy in 2021, has market capitalisation of $12 billion
Chesapeake Energy, a leading natural gas producer in the US, is exploring the potential acquisition of compatriot gas player Southwestern Energy, with the latter valued at more than $8 billion.
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Chesapeake’s talks with Southwestern are preliminary, Reuters reported on Wednesday, referring to anonymous sources who did not wish to be named.
If the two companies combine, they would overtake EQT Corporation as the largest natural gas-focused exploration and production company in the US by market value, at a time when shale companies are seeking scale and efficiencies, the report claimed.
Chesapeake and Southwestern have yet to respond to queries sent by Upstream on the potential acquisition.
The Reuters report noted that there’s no certainty that the two sides will reach a deal, and Chesapeake could also explore other potential acquisitions and might end up pursuing a different target.
Chesapeake emerged from bankruptcy in 2021 and has a market capitalisation of $12 billion, as per its stock price on 18 October.
ExxonMobil this month agreed to buy shale rival Pioneer Natural Resources in a $59.5 billion deal, placing the US oil giant in a dominant position in the Permian basin of western Texas and New Mexico.
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