Chesapeake Energy, a top U.S. natural gas producer, began laying off employees this week after completing the divestiture of its oil assets last year, the company said on May 20.
This week's layoffs follow its divestment of its Eagle Ford assets, not the company's pending merger with Southwestern Energy, Chesapeake said.
The company did not specify the size or scope of the layoffs.
Chesapeake in 2022 said it would exit the Eagle Ford shale field in south Texas, making it a pure-play natural gas producer.
In early 2023 it sold some of those assets to INEOS Energy for $1.4 billion, and later that year completed the divestiture by selling the remaining assets to SilverBow Resources for $700 million.
The Oklahoma City-based company is in the process of completing a $7.4 billion merger with Southwestern Energy. That deal is set to close in the second half of this year, later than originally anticipated after U.S. Federal Trade Commission sought additional information.
Natural gas producers have been hit this year by low prices, which fell some 20% in the first quarter due to high inventories and softer-than-expected demand. Chesapeake missed Wall Street estimates for profit, and many companies - including Chesapeake - have curtailed production as a response.
As part of that deal, the company will replace current General Counsel Benjamin Russ with Southwestern General Counsel Chris Lacy, according to a regulatory filing on May 7.
Recommended Reading
Chesapeake, Southwestern to Form Expand Energy as $7.4B Deal Closes
2024-09-26 - Chesapeake Energy’s merger with Southwestern Energy is expected to close in the first week of October, with the combined company renamed Expand Energy Corp.
Expand Energy: Chesapeake’s Bankruptcy to Largest Gas Producer in US
2024-11-08 - Before Expand Energy could boast itself as the largest by volume natural gas-weighted E&P in the U.S., its predecessor Chesapeake Energy had to climb out of bankruptcy.
Chesapeake, Southwestern Complete Merger to Create Largest US Natgas Co.
2024-10-04 - Chesapeake Energy Corp. has closed on its $7.4 billion takeover of Southwestern Energy Co. to create Expand Energy.
Asia, EU Buyers Warming Up to US Shale M&A Again—Jefferies
2024-10-29 - Foreign asset buyers are considering U.S. upstream M&A to lower their LNG supply costs and avoid windfall taxes on European operations, Jefferies Managing Director Bill Marko says.
Solaris Completes Acquisition of Mobile Energy Rentals
2024-09-12 - With the acquisition of Mobile Energy Rentals complete, Solaris now has access to multiple end markets outside of the oil patch.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.