Chesapeake Energy Corp. agreed on Aug. 11 to acquire Vine Energy Inc., which is set to make Oklahoma City-based Chesapeake the largest producer in the Haynesville Shale.

The acquisition is a “zero premium” transaction valued at approximately $2.2 billion, based on a 30-day average exchange ratio as of close on Aug. 10, equating to $15 per share. The deal is also expected to help consolidate Chesapeake’s position in Louisiana’s Haynesville Shale, as the company bets on the gas basin’s proximity to the growing LNG export hub along the U.S. Gulf Coast, according to Andrew Dittmar, senior M&A analyst at Enverus.

"Given its high focus on gas with nearly 90% of capital spending slated for the Haynesville and Appalachia, it makes sense that the company would look to one of those two basins for an acquisition," Dittmar said in an emailed statement. "With a mix of public and private acquisition opportunities, strong well results, and higher confidence around future pricing for production given its geographic location close to Gulf Coast gas markets and adequate infrastructure, it is easy to see why Chesapeake ultimately chose the Haynesville for expansion."

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