Chesapeake Energy Corporation (NASDAQ: CHK) and Southwestern Energy Company (NYSE: SWN) have announced that the waiting period in connection with their pending combination under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired. The companies expect the merger to close in the first week of October, upon which the combined company will be rebranded as "Expand Energy Corporation" and will trade on the NASDAQ under the ticker symbol "EXE."
Upon closing, the combined company will become the largest natural gas producer in the U.S., with a premium scaled position across leading natural gas basins in the country. The company will also commence public trading on the NASDAQ under the new ticker symbol at the open of trading the day after closing.
Nick Dell’Osso, Chesapeake’s president and chief executive officer, expressed that "the world is short energy" and highlighted the company's position to compete on an international scale and deliver opportunities for energy customers.
Chesapeake Energy Corporation, headquartered in Oklahoma City, is focused on discovering and responsibly developing leading positions in top U.S. oil and gas plays. The company has a goal to achieve net zero GHG emissions (Scope 1 and 2) by 2035 and is committed to safely providing affordable, reliable, lower carbon energy.
Southwestern Energy Company, on the other hand, is a leading U.S. producer and marketer of natural gas and natural gas liquids, focusing on responsibly developing large-scale energy assets in the nation's most prolific shale gas basins. The company's returns-driven strategy aims to create sustainable value for its stakeholders.
As of the most recent financial reporting period, Chesapeake Energy Corporation reported a revenue of $3.54 billion, representing a 20% increase from the previous period. Additionally, the company's net income stood at $426 million, marking a 35% increase from the prior period.
Meanwhile, Southwestern Energy Company reported a revenue of $2.91 billion in the latest period, reflecting a 15% increase from the previous period. The company's net income amounted to $312 million, signaling a 28% increase from the prior period.
As the companies move towards completing their combination and rebranding, the financial performance metrics indicate significant growth in revenue and net income for both Chesapeake Energy Corporation and Southwestern Energy Company compared to the previous reporting period. The market has reacted to these announcements by moving the company's shares 3.2% to a price of $80.74. Check out the company's full 8-K submission here.
