Chesapeake, Southwestern near merger: Report

U.S. natural gas producers Chesapeake Energy and Southwestern Energy are nearing a merger, according to media reports.

If the two companies merge, the resulting company would be worth roughly $17 billion, Reuters reported. The news service reported in October the two companies were exploring a merger. A deal could be finalized by next week, according to Reuters.

A Chesapeake Energy facility in the Haynesville formation. Chesapeake and Southwestern Energy are in merger talks, according to media reports. (Image: Chesapeake Energy)

Chesapeake has positions in the Haynesville and Marcellus shales, producing natural gas for domestic and international use. The company is based out of Oklahoma City with field offices in Louisiana and Pennsylvania.

Southwestern is among the largest natural gas and natural gas liquids producers in the United States. The company is principally focused on the development of natural gas and natural gas liquids in the Marcellus and Utica Shales in Pennsylvania, Ohio and West Virginia and Louisiana’s Haynesville and Bossier formations.