US-based oil and natural gas producer Chesapeake Energy Corporation will acquire the Texas-based oil and gas company WildHorse Resource Development in a cash-and-stock deal worth approximately US$4bn. Following the completion of the transaction in the first half of 2019, Chesapeake Energy stakeholders will own approximately 55% of the combined company, while WildHorse shareholders will own approximately 45%.
With this acquisition, Chesapeake Energy will gain access to WildHorse's operations in the Eagle Ford Shale and Austin Chalk formations in southeast Texas. The crude oil output of the combined entity is slated to increase by up to 130,000 bbl/d in 2019 and by up to 170,000 bbl/d in 2020: adjusted oil production will almost double by 2020, from stand-alone adjusted 2018 estimates.
Chesapeake Energy is restructuring its US portfolio and agreed to divest interests in the Utica Shale oil and gas assets located in Ohio to US-based oil and gas firm Encino Acquisition Partners (EAP) for approximately $2bn in July 2018.