One day after reporting its Q2 earnings and beating Wall Street expectations, Okla. City-based Chesapeake has announced a move that leaves no doubt as to who your daddy is now in the gas-rich Haynesville. Reese Energy Consulting today is following the latest news from Chesapeake, which will acquire Plano, Texas-based Vine Energy—an REC client—for $615 million in a cash-and-stock deal valued at $2.2 billion. The acquisition adds 123,000 net acres in the Haynesville and Mid-Bossier shale plays in Northwest La., to Chesapeake’s existing 225,000 acres for a total 348,000—making it the largest gas producer in the Haynesville and the dominant Gulf Coast operator. The company also gains another 600 drilling locations for a total 1,500, and more than triples its gas production from 531 MMCFD to 1.6 BCFD. After emerging from bankruptcy in February and dismissing its CEO in April, looks like Chesapeake has doubled down on its growth strategy to feed more natural gas to hungry liquefaction plants as LNG exports continue to shatter records.
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Chesapeake Energy Corporation is an American energy company engaged in hydrocarbon exploration. It is headquartered in Oklahoma City. The company is named after the founder’s love for the Chesapeake Bay region. The company is ranked 373rd on the Fortune 500.