Chesapeake And Southwestern Become Expand Energy

Laura Starks
4.61K Followers
(17min)

Summary

  • Expand Energy, built from Chesapeake’s acquisition of Southwestern, is a $19.5 billion market cap company paying a 2.7% base dividend.
  • Chesapeake acquired Southwestern for $7.4 billion, and the merger closed Oct. 1, 2024.
  • Despite a rough year for natural gas, the company is well-positioned to supply natural gas to Midwest and mid-Atlantic utilities via its Marcellus production, and gas for LNG from Haynesville.
  • Expand Energy also gets revenue uplift through its Marcellus and Utica natural gas liquids reserves.

Gas pipeline system with high pressure control. Concept of energy delivery infrastructure

Denis Shevchuk

Expand Energy Corporation (NASDAQ:EXE), formed from Chesapeake Energy's $7.4 billion acquisition of Southwestern Energy, is, according to the new company, the largest US producer of natural gas.

It remains headquartered in Chesapeake's hometown of Oklahoma City, but will have

This article was written by

4.61K Followers
Laura Starks is the founder and CEO of Starks Energy Economics, LLC (since 2007). She has a degree in chemical engineering and an MBA with a concentration in finance which she has used for many years to invest personally and to share her ideas about energy companies. Her coverage includes utilities, independent power producers, energy service companies and contractors, a few petrochemical companies, and all sectors of oil and natural gas: upstream, midstream, and downstream

Analyst’s Disclosure:I/we have a beneficial long position in the shares of EXE, XOM, CVX, CTRA, GPOR, EOG, RRC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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