Chesapeake Energy Corp. (CHK) is set to become the largest natural gas producer in the U.S. after announcing it is buying rival Southwestern Energy Co. (SWN) for $7.4 billion in an 澳洲幸运5官方开奖结果体彩网:all-stock deal.

Chesapeake said Thursday that it will pay $6.69 per share for Southwestern. That’s 3% less than the stock’s closing price Wednesday. Under the terms of the agreement, Southwestern investors will receive 0.0867 Chesapeake share for every share they own. 

Chesapeake noted that the 澳洲幸运5官方开奖结果体彩网:acquisition gives it “high quality, large scale acreage in Appalachia and Haynesville” (located in northwest Louis𝓰iana and East Texas), and net production of about 7.9 billion cubic feet of gas. It explained that together the two drillers have 5,000 gross locations and 15 years of inventory.

Chesapeake added that the combined firm will take on an as-of-yet unannounced new name, and that Chesapeake 澳洲幸运5官方开奖结果体彩网:shareholders will control 60%, while current Southwestern shareholders will have 40%. The transaction is expected to close in the second quarter. 

Chesapeake Chief Exꦕecutive Officer (CEO)♑ Nick Dell’Osso said the merger will create “a deep inventory of advantaged assets adjacent to high demand markets.”

The purchase would help Chesapeake, now the second-largest U.S. 澳洲幸运5官方开奖结果体彩网:natural gas producer, overtake No. 1 EQT Corp. (EQT)

Shares o🉐f Chesapeake Energy advanced Thursday in afternoon trading, while Southwestern Energy and EQT shares fell.

About 45 minutes before Thursday's closing bell, Chesapeake Energy shares were up 2.6% at $79.19, while Southwestern shares were down 2.6% at $6.72.