Under the terms of the merger agreement, Vine shareholders will receive a fixed exchange ratio of 0.2486 Chesapeake shares of common stock and $1.20 of cash for each share of Vine common stock owned. Additionally, consolidation of Haynesville gas reserves gives the new entity the ability to become the top supplier along the Gulf Coast. While Vine will receive the backing of a larger company with an extensive portfolio of resources, Chesapeake will benefit through an increased cash flow and a deepening of their natural gas inventory. own approximately 70% of outstanding shares of Vine common stock and have entered into a support agreement to vote in favor of the transaction. Shares of VEI hovered around its opening price of $14.88, while shares of CHK increased 0.62% as of Wednesday morning.įunds managed by The Blackstone Group Inc. Vine is an energy company focused on the development of natural gas properties in the over-pressured stacked Haynesville and Mid-Bossier shale plays in Northwest Louisiana.

( VEI) today announced that they have entered into a definitive agreement, under which Chesapeake will acquire Vine in a zero premium transaction valued at approximately $2.2 billion.

Chesapeake Energy Corporation (CHK) and Vine Energy Inc.

Chk buys vine