Southwestern, Chesapeake Energy Close to $17-B Merger

US natural gas producer Chesapeake Energy and Southwestern Energy are nearing a merger that would create a nearly $17 billion company, a person familiar with the matter told Tanay Dhumal and Anirban Sen of Reuters.

A potential deal could create a company that would overtake EQT as the largest natural gas-focused exploration and production firm in the US by market value. I Photo: Southwestern Energy Linkedin

The deal could come together as soon as next week provided the talks do not fall apart, the source said, requesting anonymity since talks are private.

Reuters had reported in October that Chesapeake was exploring an acquisition of Southwestern.

A potential deal could create a company that would overtake EQT as the largest natural gas-focused exploration and production firm in the US by market value, at a time when shale companies seeking scale and efficiencies are fueling a rapid consolidation in the energy sector.

The deal talks come against the backdrop of sluggish US natural gas prices.

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