Chesapeake Acquires WildHorse

An oil pump, credit: wikimedia commons

Chesapeake Energy Corporation (NYSE: CHK) announced on October 30 that it has agreed to acquire WildHorse Resource Development Corp. (NYSE: WRD) in a cash and stock deal worth approximately $3.9 billion. The deal is expected to close in the first of 2019. WildHorse shareholders will receive either 5.989 Chesapeake shares or 5.336 shares and $3 in cash for each share of WildHorse that they own. Doug Lawler, Chief Executive at Chesapeake Energy, said in a statement, “This transaction accelerates Chesapeake’s strategic plan and expands the value-creation opportunities for our shareholders by adding a premier asset at an attractive valuation, significantly boosting oil production, EBITDA margins and cash flow growth, while improving our leverage metrics.” Guggenheim Securities and Morgan Stanley are serving as financial advisers to WildHorse with legal counsel from Akin Gump Strauss Hauer & Feld and Vinson & Elkins. Goldman Sachs is acting as financial adviser to Chesapeake with legal counsel from Baker Botts and Wachtell, Lipton, Rosen & Katz.
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