Chesapeake Energy Strikes $3.98 Billion Deal For WildHorse Resource
October 30 2018 - 7:59AM
Dow Jones News
By Micah Maidenberg
Chesapeake Energy Corp. (CHK) is snapping up oil and gas
producer WildHorse Resource Development Corp. (WRD) in a deal
valued at about $3.98 billion including debt.
Under terms of the deal, WildHorse owners can trade each of
their shares in the company for either 5.989 shares of Chesapeake
stock or a combination of 5.336 shares of Chesapeake stock and $3
in cash, the companies said in a statement Tuesday. Under deal
terms, Chesapeake will assume the value of Wildhorse's net debt of
$930 million.
WildHorse has operations in the Eagle Ford and Austin Chalk oil
and gas resources in southeast Texas. Chesapeake said in the
statement it will gain around 420,000 net acres of property that
has strategic access to the Gulf Coast region.
The companies project $200 million to $280 million in average
annual cost savings.
When the deal closes, Oklahoma City, Oklahoma-based Chesapeake
shareholders will own around 55% of the combined company, with
WildHorse shareholders owning the rest.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
October 30, 2018 07:44 ET (11:44 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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