COMMENTS:

PETER MCNALLY, GLOBAL HEAD OF ANALYSTS, THIRD BRIDGE

"The merger will certainly bring additional scale, a portfolio that is high graded and synergies ... the challenge for Chesapeake and Southwestern will be to access more profitable parts of the natural gas value chain, particularly in the growing LNG market."

"Bringing Chesapeake and Southwestern together will reduce overall costs, but Third Bridge experts see little likelihood of these companies influencing the price of natural gas."

GABRIELE SORBARA, MANAGING DIRECTOR - EQUITY RESEARCH, SIEBERT WILLIAMS SHANK & CO LLC

"All in all, we view the deal as strategically sound and accretive longer-term with numerous synergies. However, the deal is negative near-term as it is dilutive to 2024/2025 FCF yield and net-debt/EBITDA on our initial take."

"As a result of a reduced FCF yield near-term, Chesapeake's pro forma capital returns are likely to take a step back, especially as it is likely to prioritize debt reduction over buybacks."

MATT PORTILLO, ANALYST, TUDOR PICKERING HOLT

"The transaction will create the largest pure play natural gas producer in the United States ... with the combined market cap likely opening the door for S&P500 inclusion."

"Scale will improve the company's position on the Gulf Coast, in our opinion, as it relates to unlocking and securing additional LNG opportunities ... the combined story likely attracts significant long-only attention as deal should place name alongside EQT as one investors will look to own in the 2025 upcycle."

(Reporting by Mrinalika Roy in Bengaluru; Editing by Shounak Dasgupta)