Chesapeake Energy Corporation announced it has completed its previously announced acquisition of Vine Energy Inc.
The transaction was approved by Vine stockholders at a special meeting held on November 1, 2021. 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 and its reporting obligations under the Securities Exchange Act of 1934 will be suspended.
Nick Dell’Osso, Chesapeake’s new President and Chief Executive Officer said the acquisition strengthens the company’s position in the Haynesville Shale with more than 900 additional drilling locations. It also improves Chesapeake’s free cash flow profile and accelerates what he calls a “significant return of capital to our shareholders at a time of favorable natural gas prices.”
