US gas company Chesapeake Energy's acquisition of Southwestern Energy is now expected to close early in the fourth quarter of 2024 (Q4 2024), Reuters cited the company’s CEO Nick Dell'Osso as saying.

This development follows a second request for additional information in April by the US Federal Trade Commission (FTC), which had previously postponed the merger to the latter half of the year.

In January, the all-stock merger was announced with a valuation of $7.4bn and was originally expected to conclude by Q2 2024.

Speaking at the Gastech energy conference, Dell'Osso remarked that the US natural gas market continues to face an oversupply issue.

“We are going to be pretty cautious with how we think about changing our supply picture until we see that (oversupply) is no longer the case,” he added.

The merger is set to create an energy company with extensive acreage in Appalachia and Haynesville, boasting a robust natural gas portfolio.

Chesapeake, currently producing around 3bcf/d of gas, will see the combined entity achieve a production rate of approximately 7.9bcf/d.

The merger will also consolidate more than 5,000 gross locations and a 15-year inventory, positioning the new company as a key player in the global market with plans to establish a marketing and trading presence in Houston.

The news comes as Chesapeake reported a net loss of $227m in Q2 2024 compared with a net income of $391m in the same quarter of the previous year.

The company's total revenues also declined, dropping to $505m from $1.89bn a year ago.

This decrease in net income and revenue was attributed to lower gas prices and production.

In other industry news, Diamondback Energy recently finalised its merger with Endeavor Energy Resources, becoming a leading operator in the Permian Basin.

The cash-and-stock deal, announced in February and valued at $26bn, underwent two comprehensive reviews by the FTC.

"Chesapeake’s $7.4bn acquisition of Southwestern Energy set to conclude in Q4 " was originally created and published by Offshore Technology, a GlobalData owned brand.

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