Chesapeake Energy Corporation, Southwestern Energy To Merge; OKC To Be Headquarters

Chesapeake Energy Corporation and Southwestern Energy Company announced Thursday that they will combine following a $7.4 billion agreement.

In a press release, Chesapeake said they hope the merger will create a premier energy company.

"The combined company, which will assume a new name, will be uniquely positioned to deliver affordable, lower carbon energy to meet growing domestic and international demand with significant, sustainable cash returns to shareholders through cycles."

The Chesapeake CEO, Nick Dell'Osso, will stay on to lead the new company, which will be headquartered in Oklahoma City, but a material presence will remain in Houston.

"This powerful combination redefines the natural gas producer, forming the first U.S. based independent that can truly compete on an international scale. The union creates a deep inventory of advantaged assets adjacent to high-demand markets, allowing for the application of proven operational practices and the power of an Investment Grade quality balance sheet to drive significant synergies benefiting energy consumers and shareholders alike," said Nick Dell'Osso in the press release.

The new company is estimated to be worth $24 billion.

Southwestern President and Chief Executive Officer Bill Way said it's going to be a transformational combination in the press release.

"Together, Southwestern and Chesapeake can drive improved margins and returns from our highly complementary portfolios through enhanced scale, capital allocation flexibility, and access to premium markets to supply growing global natural gas demand," Way said.

This is a developing story; refresh the page for updates.