Shareholders say ‘yes’ to Chesapeake’s $4 billion purchase of WildHorse Resources

Shareholders in Oklahoma City’s Chesapeake Energy Corporation and Texas-based WildHorse Resource Development Corporation have approved Chesapeake’s $4 billion acquisition of WildHorse.

The preliminary results of the elections were announced indicating that about 96 percent of the Chesapeake shareholders voted for the acquisition. Nearly 95 percent of the WildHorse shareholders supported the deal as well. The WildHorse shareholders had nearly 134 million shares in the company and supported an option of receiving about 5.3 shares of Chesapeake’s common stock for a WildHorse share and $3 in cash.

The transaction was to have closed on Friday, Feb. 1.

In connection with Chesapeake’s pending acquisition of WildHorse, certain WildHorse stockholders including investment funds managed by NGP Energy Capital Management, LLC and an affiliate of Carlyle Group Management LLC, entered into voting and support agreements. The WildHorse stockholders who entered into voting and support agreements irrevocably elected to receive the mixed consideration with respect to their WildHorse common stock, including the WildHorse common stock into which WildHorse preferred stock is convertible.

The acquisition expands Chesapeake’s proved oil reserves to nearly 320 million barrels and gives it more access to the Eagle Ford Shale in South Texas and the Austin Chalk in East Texas.

It could also double Chesapeake’s oil production.

“It is an exciting day for us,” Chesapeake CEO Doug Lawler said during a meeting with shareholders at the company’s headquarters.  “The ability to drive greater value to our shareholders is something you haven’t seen in the past few years. While we still have a significant amount of work to do to grow our equity for you, our shareholders, you will begin to see greater share price appreciation in the future.