Chesapeake Energy Corp. CHK, said Wednesday it has reached an agreement to acquire Vine Energy Inc. VEI, +2.69% in a zero-premium cash-and-stock deal valued at about $2.2 billion. Under the terms of the deal, Chesapeake will pay $15 a share, split between 0.2486 shares and $1.20 in cash. The company said the deal is expected to close in the fourth quarter and too boost its five-year free cash flow outlook by about $1.5 billion to about $6.0 billion. It expects it to generate about $50 million in average annual savings from operating and capital synergies. Vine is focused on the development of natural gas properties in the the over-pressured stacked Haynesville and Mid-Bossier shale plays in Northwest Louisiana. “By consolidating the Haynesville, Chesapeake has the scale and operating expertise to quickly become the dominant supplier of responsibly sourced gas to premium markets in the Gulf Coast and abroad,” Chesapeake CEO Mike Wichterich said in a statement. Vine shares jumped 7.6% premarket on the news.
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