Shale Consolidation: Chesapeake, Southwestern Form Expand Energy; Private Producers Seal $2-Billion Merger

New names and new deals continue to reshape the US shale sector.

September 26, 2024 By Trent Jacobs  Journal of Petroleum Technology

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.