Chesapeake Energy Closing $2.4B Deal to Buy Chief Oil & Gas

oil drill

According to people familiar with the situation, Chesapeake Energy Corp. is close to acquiring privately held natural gas producer Chief Oil & Gas Inc. for $2.4 billion, including debt. 

This week could be the week that a deal is announced. Chief Oil & Gas was reportedly considering a sale in October, according to the news agency, as energy prices rose and raised sector valuations.

After sending an email to Chesapeake seeking response outside normal business hours, the company did not immediately respond.

In the span of a few months, Chesapeake, a natural gas producer that emerged from bankruptcy last year, has made two acquisitions. For $2.2 billion in August, the business agreed to acquire Vine Energy Inc., a rival driller owned by Blackstone Group Inc., following a wave of mergers and acquisitions in the US oil and gas shale sector.

Investors have pushed the industry to consolidate in the wake of several years of poor financial performance in order to save costs, increase dividends, and create operators with more scale.

Original source material for this article taken from here

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Written by Olivia Woods

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