Chesapeake completes Vine acquisition

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OKLAHOMA CITY – Chesapeake Energy Corp. announced Tuesday that it has completed its previously announced acquisition of Vine Energy Inc.

The transaction was approved by Vine stockholders at a special meeting held Monday. Vine stockholders will receive fixed consideration of 0.2486 of a share of Chesapeake common stock plus $1.20 cash for each share of Vine common stock issued and outstanding immediately prior to the closing of the merger, with cash to be received in lieu of any fractional shares.

As a result of the merger, Vine common stock will no longer be listed for trading on the New York Stock Exchange.

“We are pleased to integrate the outstanding Vine operations and assets into our portfolio, strengthening our position in the Haynesville Shale with over 900 additional drilling locations, immediately improving our free cash flow profile and accelerating a significant return of capital to our shareholders at a time of favorable natural gas prices,” Chesapeake President and CEO Nick Dell’Osso said. “We greatly appreciate the continued support of the talented Vine employees as we work together to ensure a seamless and successful transition of ownership and realize the valuable synergies expected from combining these two great businesses.”

Also on Tuesday, Chesapeake reported a loss of $345 million in its third quarter.

On a per-share basis, the Oklahoma City-based company said it had a loss of $3.51. Earnings, adjusted for non-recurring costs, came to $2.38 per share.

The oil and gas company posted revenue of $890 million in the period.

“Chesapeake has built significant momentum throughout this year as our employees continue to deliver outstanding results by maintaining their focus on the execution of our strategy – maximizing sustainable cash flow through our high return drilling program, building inventory by reducing our breakeven levels in all assets and reducing operating costs,” Dell’Osso said. “We look forward to integrating the outstanding assets in the Vine acquisition and expect our strong performance will continue into 2022. Additionally, we are very pleased to be making rapid progress on certifying 100% of our dry gas production as Responsibly Sourced Gas by midyear 2022 as well as significantly reducing our emissions in our oil assets as we highlight the very low methane emissions profile of our modern, responsibly operated oil and gas operations.”