straga/iStock via Getty Images
Southwestern Energy (NYSE:SWN) +6.1% in Tuesday’s trading following a Reuters report that Chesapeake Energy (NASDAQ:CHK) has approached the company about a potential acquisition.
Chesapeake’s (CHK) talks with Southwestern (SWN) are in the preliminary stage, and the company reportedly has been exploring other potential acquisitions and may end up pursuing a different target.
A combination of the two companies would overtake EQT Corp. (EQT) as the largest U.S. natural gas-focused exploration and production company by market capitalization.
The two companies are neighbors; most of Southwestern’s (SWN) production is in Appalachia’s shale formations and the Haynesville basin in Louisiana, where Chesapeake (CHK) also operates.
