WASHINGTON (dpa-AFX) - Chesapeake Energy Corp. (CHK) and Southwestern Energy
Co. (SWN), on Thursday announced an all-stock merger deal valued at $7.4
billion, or $6.69 per share, based on CHK's closing price on January 10.

Under the terms, the holders of each Southwestern share will receive 0.0867
share of Chesapeake.

Following the completion of deal, which is expected in the second quarter, the
combined company would have an enterprise value of around $24 billion.

Post transaction, CHK shareholders will own approximately 60 percent, and
Southwestern shareholders will own around 40 percent of the new company.

The combination is expected to immediately add to the cash flow and other
financial metrics.

Through Chesapeake's existing shareholder return framework, the merger expects
an around 20 percent rise in dividends per share over five years.

'Identified synergies will enhance shareholder value through improved capital
efficiencies and operating margins driven by longer laterals, lower drilling and
completion costs, G&A reductions, and the utilization of shared operational
infrastructure,' Chesapeake said.

Following the merger, Mike Wichterich will serve as Non-Executive Chairman,
whereas Nick Dell'Osso as CEO of the combined company.

The new company will be headquartered in Oklahoma City while maintaining a
material presence in Houston.

CHK was trading up by 0.76 percent at $77.77 per share in the pre-market trade
on the Nasdaq.

SWN was trading down by 2.18 percent at $6.74 per share in the pre-market trade
on the New York Stock Exchange.



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