Oklahoma City-based Chesapeake Energy said recently it plans to acquire Spring-based Southwestern Energy for $7.4 billion to create a natural gas producer with more than 5,000 locations that currently produce about 7.9 Bcfd. The company will have 1.2 million net acres in Appalachia and 650,000 acres in Haynesville.
Nick Pope of Seaport Research told Oil & Gas Journal the two companies now account for about 40 percent of gross gas production in Haynesville and 20 percent of production in Appalachia.
In a separate announcement, Chesapeake said it is reducing 2024 capital spending and forecasting 2024 production from Haynesville and Marcellus at nearly 20 percent below the rate at which it ended 2023. Chesapeake plans to drop a rig in each area (down to three in Marcellus and four in Haynesville) and release one frac crew in each basin (from two to one). The forecast capex of about $1.3 billion expects to drill about 95-to-115 wells (193 in 2023) and turn in-line 30-to-40 wells (166 in 2023). “The market is pretty clearly telling us it doesn’t need our gas today,” Nick Dell’Osso, president and CEO, said.