Editor's note: This is a breaking news article. This article has been updated to add additional commentary, a pro forma production chart and acreage maps.
Chesapeake Energy and Southwestern Energy have entered into an all-stock merger agreement valued at $7.4 billion, or $6.69 per share, based on Chesapeake's closing price on Jan. 10, 2024, the companies said on Jan. 11.
The deal would create the U.S.’ largest natural gas producer, but it is almost certain to face intense scrutiny as a wave of consolidations, largely oil-focused, has already raised the hackles of some Congressional Democrats.