Chesapeake Energy Corp. buys Southwestern Energy for $7.4 billion

U.S.-based Chesapeake ($10 billion market capitalization) announced today that it has acquired its smaller rival Southwestern Energy ($7.6 billion) in an all-stock transaction worth $7.4 billion, becoming the largest independent natural gas producer in the United States. The merger is part of a series of consolidations in the energy sector.

The new entity will have a market capitalization of over $17 billion, and should benefit greatly from the recent boom in liquefied natural gas. In particular, the transaction will strengthen Chesapeake 's position in Louisiana and on the Gulf Coast, where most of the company's LNG refrigeration and shipping facilities are located.

The merger is part of a series of consolidations in the energy sector. Last December, Australia's Woodside Energy Group and Santos Limited announced that they were in merger talks to create an Australian gas export giant.

As a reminder, the United States is already the world's leading LNG exporter, with 1027 billion m3 to be produced by 2022.

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