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OKLAHOMA CITY (AP) - Chesapeake Energy Corp., the nation's third-largest natural gas producer, agreed Monday to acquire rival Columbia Natural Resources LLC for $2.2 billion in cash. Chesapeake also will assume $75 million in debt in the deal with Columbia's owner, Triana Energy Holdings LLC, which was formed by management of Metalmark Capital LLC, part of Morgan Stanley Capital Partners.
The deal will cement Chesapeake's place as a major gas producer at a time when natural gas has risen to record highs.
Chesapeake's proven reserves of natural gas equivalent will increase 1.1 trillion cubic feet and it will gain 1.4 tcfe of probable and possible reserves. Columbia's daily net production now is 125 million cubic feet of natural gas equivalent, officials said.
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