(Reuters) -U.S. natural gas producer Chesapeake Energy and peer Southwestern Energy are nearing a merger that would create a nearly $17 billion company, a person familiar with the matter told Reuters on Friday. Shares of Southwestern and Chesapeake closed more than 7% and 3%, respectively, after the Wall Street Journal reported the talks earlier in the day. The deal talks come against the backdrop of a sluggish U.S. natural gas prices. U.S. natural gas futures ended 2023 with the biggest percentage decline since 2006 due to record production, ample inventories and a mild winter. Chesapeake has been shedding oil-producing assets to focus on its competence in natural gas since emerging from bankruptcy in 2021.

Source: Wall Street Journal January 05, 2024 21:39 UTC