Special: Chesapeake Electricity nears $2.4 bln offer to invest in Main Oil & Gas -sources

Jan 19 (Reuters) – Chesapeake Energy Corp (CHK.O) is in superior talks to get privately owned natural fuel producer Main Oil & Gasoline for all-around $2.4 billion, including debt, people today acquainted with the make a difference reported on Wednesday.

A offer for Chief Oil & Fuel, founded and managed by Texan ‘wildcatter’ Trevor Rees-Jones, could be declared as soon as this 7 days, the resources explained. In wildcat drilling, exploration wells are dug in parts not recognised to be natural source fields.

The acquisition by Chesapeake, a U.S. shale fuel and oil producer that only emerged from individual bankruptcy just past yr, underscores the recovery of pieces of the vitality industry as all-natural useful resource costs surge to multi-yr highs.

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The resources, who spoke on condition of anonymity to explore non-public information, cautioned that negotiations could continue to slide apart at the previous second.

A Chief Oil & Fuel spokesperson declined to comment. Chesapeake did not quickly answer to a request for remark.

Reuters documented in Oct that Main Oil & Gas was up for sale, amid the surge in electrical power prices that has boosted company valuations in the business.

If completed, it would be the second acquisition which Chesapeake has manufactured since February 2021, when it emerged from one of the premier oil and gas producer bankruptcies of modern yrs. In November, Chesapeake concluded the obtain of Vine Vitality for $615 million.

Since exiting Chapter 11 bankruptcy defense, Chesapeake has concentrated on pure fuel output, a return to its roots as a enterprise established in 1989 by wildcatters Aubrey McClendon and Tom Ward.

Rees-Jones introduced Main Oil & Gasoline in 1994. The enterprise operates in the Marcellus shale in northeastern Pennsylvania and has around 600,000 web acres, producing extra than 1 billion cubic toes for every working day (bcf/d) of normal fuel.

The sale of Main Oil & Gasoline would be the latest mixture of U.S. organic fuel producers in the past couple months.

Privately held Alta Assets was sold in July to EQT Corp (EQT.N) for $2.9 billion, and Southwestern Power Co (SWN.N) obtained Indigo Natural Sources for $2.7 billion in September and GEP Haynesville for $1.85 billion in December.

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Reporting by Shariq Khan in Bengaluru and David French in New York Editing by Kenneth Maxwell

Our Criteria: The Thomson Reuters Trust Principles.