Speculation mounts about Chesapeake Energy merger

Focus: Chesapeake Energy's future muddied by executive departures, strategy  shifts | Reuters


Still no formal announcement regarding the anticipated merger between Oklahoma City’s Chesapeake Energy Corp. and Southwestern Energy Co. based in Spring, Texas.

But the speculation about the impact of such a deal, one that could have a value of $17 billion, is growing and led this week to a question raised in The Daily Oklahoman.

What if the merger were to become a reality and furthermore, what if Chesapeake were to move headquarters out of state? The impact? Disastrous obviously for Oklahoma City because it would mean the loss of employees and Chesapeake’s sprawling campus in the city’s north side.

After all, Chesapeake exists with 1.5 million square feet of buildings and as The Oklahoman put it, “would be an ugly blow” to the city’s market.

On the other, for now it is mere speculation and were a merger to take place, would not necessarily mean Chesapeake would move its headquarters.

Click here for The Oklahoman