Chesapeake Energy Corp. and Southwestern Energy Co., longtime rivals for control in the Lower 48 natural gas patch, agreed to merge Thursday in a combination valued at $7.4 billion, bringing together their estimable resources in Appalachia and the Haynesville Shale.

Total natural gas production, which comprises 92% of the combined output, was 7.9 Bcfe/d net in 3Q2023. Together, the companies also control 5,000-plus gross locations and an estimated 15 years of inventory.

The combined position covers 1.8 million net acres, including 650,000 in the Haynesville, 650,000 in Pennsylvania and 530,000 in Ohio/West Virginia. If all goes to plan, the tie-up could be completed by mid-year.

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