M&A · Energy · Crude Petroleum & Natural Gas
Chesapeake Energy Corp to acquire Southwestern Energy Co
Announced Jan 11, 2024 · Closed Oct 1, 2024
Deal value$7.40BEV $11.46B
Premium—To unaffected price
EV / Adj. EBITDA3.4x1.4x EV / Revenue
ConsiderationAll stock$6.69 per share
Transaction
- Acquirer
- Chesapeake Energy Corp (CHK)
- Target
- Southwestern Energy Co (SWN)
- Buyer type
- Strategic
- Offer price per share
- $6.69
- Enterprise value
- $11.46B
- Status
- Closed Oct 1, 2024
Deal protections
- Break fee (target pays)
- $260M · 3.5%
- Reverse fee (buyer pays)
- $389M · 5.3%
- Go-shop
- No-shop
- Financing
- —
Advisors
- To the acquirer
- Evercore, JPMorgan, Morgan Stanley
- To the target
- Goldman Sachs
- Evercore fee
- $20.0M
- Goldman Sachs fee
- $40.0M
Sector context · Energy
- Comparable deals
- 36 in the prior 24 months
- Premium
- Sector median 22.0%
- EV / Adj. EBITDA
- 3.4x vs. 8.7x sector median
- Break fee
- 3.5% vs. 2.8% sector median
Timeline
- AnnouncedJan 11, 2024
- Proxy filedMay 20, 2024
- Definitive proxyMay 20, 2024
- Shareholder voteJun 18, 2024
- ClosedOct 1, 2024
Valuation · fairness opinions
Other analysisEvercore$4.61$6.60
Other analysisEvercore$7.23$9.21
Discounted cash flowEvercore$6.80$12.05
Discounted cash flowEvercore$5.99$11.11
Discounted cash flowEvercore$10.33$17.35
Discounted cash flowGoldman Sachs$4.01$6.60
Future share priceGoldman Sachs$4.48$6.69
Premiums paidGoldman Sachs$5.68$7.01
Discounted cash flowGoldman Sachs$6.55$8.78
Future share priceGoldman Sachs$6.44$8.28
Offer $6.69
Implied value per Southwestern Energy Co share by analysis, from Evercore and Goldman Sachs · DCF discount rate 8%–25%.