Chesapeake Energy and Southwestern Energy announced on 26 September that they will soon combine to create the largest natural gas producer in the US, under the name Expand Energy. The companies highlighted that they have cleared antitrust regulations and expect to finalize the merger in the first week of October.
«The world is short energy,» said Nick Dell’Osso, CEO of Chesapeake, in a statement, adding, “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.»
Chesapeake moved to acquire Southwestern in January through an all-stock deal valued at $7.4 billion. The merged company is set to produce around 7% of total US natural gas output, or 7.3 Bcf/D, based on 2023 figures.
The newly formed company will become the largest operator in Louisiana’s Haynesville Shale, with a post-merger holding of 650,000 net acres. It will also hold a significant position in the Appalachian Basin, with 1.18 million net acres across Ohio, West Virginia, and Pennsylvania.
In a separate report, Reuters revealed that two privately held shale producers are merging in a deal valued at more than $2 billion. Denver-based Validus Energy reportedly won a confidential auction to acquire Tulsa-based Citizen Energy. The news agency cited unnamed sources close to the transaction and said neither oil company had confirmed the deal.
Citizen Energy, founded in 2017, is backed by private equity firm Warburg Pincus and is focused on the Anadarko Basin.
Validus Energy has re-entered the shale consolidation market following the sale of its previous venture by the same name to Devon Energy in 2022 for $1.8 billion.