Chesapeake, Southwestern Delay Merger Closing After FTC Seeks More Information
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Chesapeake Energy and Southwestern Energy said on Friday the closing date of their proposed $7.4 billion merger has been pushed back to the second half of the year after receiving a U.S. regulator’s second request for information.
Chesapeake had agreed to buy smaller rival Southwestern Energy earlier this year and expected the deal to close by the second quarter of 2024.
U.S. lawmakers have sought increased scrutiny by the Federal Trade Commission (FTC) over multi-billion dollar deals. Nearly 50 Democrats in the U.S. Congress in March urged the regulator to probe oil and gas company deals and expand current investigations to protect consumers and industry competition.
Exxon Mobil and Pioneer Natural Resources received similar requests from the FTC related to their $60 billion merger, along with Chevron for its $53 billion buyout of Hess, and Occidental Petroleum on its $12 billion bid for CrownRock.
Chesapeake and Southwestern said they would cooperate with the FTC in its review.
The combined company will have production of about 7.9 billion cubic feet equivalent per day (bcfepd), and surpass EQT Corp. to become the largest independent natural gas exploration and production company in the United States by market value and output.
Source: Reuters
Headquartered in Oklahoma City, Chesapeake Energy is powered by dedicated and innovative employees who are focused on discovering and responsibly developing leading positions in top U.S. oil and gas plays. With a goal to achieve net zero GHG emissions (scope 1 and 2) by 2035, Chesapeake is committed to safely answering the call for affordable, reliable, lower carbon energy.
Southwestern Energy is a leading U.S. producer and marketer of natural gas and natural gas liquids focused on responsibly developing large-scale energy assets in the nation’s most prolific shale gas basins. SWN’s returns-driven strategy strives to create sustainable value for its stakeholders by leveraging its scale, financial strength, and operational execution.
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