Chesapeake Energy Strikes $3.98 Billion Deal For WildHorse Resource

   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 [e-mail]

(END) Dow Jones Newswires

October 30, 2018 07:44 ET (11:44 GMT)

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