Like its peers, Chesapeake Energy is maneuvering through a weak natural gas market by curtailing production until supply and demand balances out.
The E&P is also navigating an intensified Federal Trade Commission (FTC) review that has introduced doubts into whether Chesapeake’s $7.4 billion merger with Southwestern Energy will close or belly flop.
“There is also rising concern among investors that the FTC will prevent the merger from consummating which creates an overhang,” said Gabriele Sorbara, managing director at Siebert Williams Shank & Co. in a May 1 commentary. “We maintain our Hold rating on the merger uncertainties and less attractive pro forma valuation relative to peers.”