From Dow Jones & Company:

Chesapeake Energy’s merger with Southwestern Energy will result in the creation of the largest natural-gas-focused producer in the U.S. The merger, part of the ongoing merger-mania in the energy sector, comes with significant investment potential but also carries its own set of risks. Despite the low and volatile price of natural gas, this merger represents a significant move in an industry that has seen less deal making compared to other sectors. Andrew Dittmar, senior vice president at Enverus Intelligence Research, notes that the tough commodity price conditions have led to big bid-ask spreads in deal negotiations.



Read more: Blockbuster Natural-Gas Merger Is Almost Too Perfect