Chesapeake Energy, Southwestern Energy announce merger

OKLAHOMA CITY (KFOR) - Chesapeake Energy announced on Thursday it has agreed to merge with Southwestern Energy.

According to the Wall Street Journal, $7.4 billion in stock transaction value is aimed at creating a premiere natural gas company.

The company said that multi-billion dollar value is based on Chesapeake's closing price as of Wednesday.

Looking at Chesapeake's property, there are 1.5 million-square-feet of buildings near NW 63rd and Western that are worth around $140 million, according to the Oklahoma County Assessor.

Taking lost jobs into consideration, The Oklahoman says Chesapeake claimed it ended 2022 with roughly 1,200 employees with more than half being corporate staff.

The Oklahoman suggests that if Chesapeake were to move to Oklahoma City, it would be a blow to the metro area office market, especially in the north side of the city.

The scope of the deal is large, too. Zacks Equity Research looked into the merger and said the move creates the largest energy exploration and production company dealing with natural gas in the United States.

News 4 also heard from Mayor David Holt Thursday morning, and he said the initial report sounds like good news for Oklahoma City.

"We're cautiously optimistic and excited," said Mayor Holt. "Chesapeake, as you said, has had a pretty strong legacy over three decades in this community and has done so much on so many different levels."

Mayor Holt added that it might mean corporate deals, which can be a bit of a blow to the community, but he's feels that this merger could help Oklahoma City be the focus of this new company.