Chesapeake Energy’s merger with Southwestern Energy is expected to close in the first week of October, with the combined company renamed Expand Energy Corp. (Source: Shutterstock)
Chesapeake Energy’s $7.4 billion merger with Southwestern Energy is expected to close in the in the first week of October with the combined company renamed Expand Energy Corp., the companies announced Sept. 26.
The two natural gas players said they had cleared the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Expand Energy will become the largest gas producer in the U.S. with its massive, dual footprints in both the Appalachia and Haynesville shale plays.
The all-stock acquisition of Southwestern by Chesapeake was first announced in January, but additional scrutiny and information requests by the Federal Trade Commission caused some delays. The new Expand name was only announced Sept. 26.
Expand will commence public trading on the NASDAQ stock exchange under the ticker symbol “EXE” at the open of trading the day after closing.
“The world is short energy,” said Chesapeake CEO Nick Dell’Osso, who will lead the combined company, in a statement. “With a premium scaled position across leading natural gas basins in the United States, a peer-leading returns program and a resilient financial foundation, Expand Energy is uniquely positioned to compete on an international scale to expand America’s energy reach and deliver opportunity for the world’s energy customers.”
While natural gas prices remain relatively low, Dell’Osso and many industry analysts are bullish on prices returning to healthy levels going forward with the rise of LNG demand as new exporting facilities come online, as well as from the rise of domestic demand in the Americas from the growth of data centers, infrastructure electrification and more.
Expand will maintain Chesapeake’s Oklahoma City headquarters, and keep a presence in the Houston area.
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