Shale pioneer Chesapeake Energy has approached its peer Southwestern Energy for preliminary talks about a possible acquisition that would create America’s top shale gas producer by market value, Reuters reports, citing sources with knowledge of the matter. The talks are in the early stages and there are no guarantees a deal could be reached, according to Reuters’ sources.
A potential tie-up between Chesapeake Energy and Southwestern Energy would create the largest natural gas-focused producer in the shale patch by market valuation, ahead of the current leader EQT Corporation. This year the U.S. shale industry has been looking to boost scale, efficiencies, and returns to shareholders by adding additional acreage. Just last week, ExxonMobil announced a blockbuster deal to buy Pioneer Natural Resources in an all-stock transaction valued at $59.