Chesapeake + SWN Merger

[dan_s]

Notes below are from one of our very smart EPG members. I plan to take a hard look at this one late in January.
-------------------------------
A Southwestern/Chesapeake merger will not be a one of equals. SWN has a stronger resource base with more reserves (66%), higher production (24%), higher RRR (55%), longer lasting production (33%) and lower unit costs (-10%).
CHK has a stronger balance sheet with less debt (-51%), more equity (82%) and a far higher solvency. SWN generates a higher net profit (45%) but has a much lower PE and a lower market value.

Resource base - Southwestern (first) - Chesapeake (second):
• Proven reserves: 21.6 tcf - 13.0 tcf.
• Production rate (2023): 4,580 MM scfe/d – 3,673 MM scfe/d.
• 2019-2022 Reserve Replacement (RRR:) 1.24 - 0.80
• Liquid content: 3.3% - 3.3%.
• Years of equivalent production: 12.9 years - 9.7 years.
• Unit cost (incl interest DD&A and overheads): $ 2.21/MM Btu - $ 2.41/MM Btu.

Financial position:
• Long term debt: $ 4,144 M - $ 2,032 M.
• Equity: $ 6,537 M - $ 10,628 M.
• Solvency: 50.4% - 72.1%.

Profitability (Henry Hub at $ 2.66/MM Btu)
• 2024 net profit: $ 1.290 M - $ 890 M. Includes cash hedging profits.
• 2024 eps: $ 1.17 - $ 6.46.
• 2024 price earnings ratio: 5.9 - 12.3.
• Market value: $ 7.6 B - $ 10.5 B

[marc.wolin@yahoo.com]

SW - Cheasepeak Aquisition

Why don’t you concentrate on these better quality companies rather than these small companies where the insiders make millions and we take it in the shorts to facilitate their deal? You are trying to cover way too many small stocks all over the board.
Marc Wolin

[mooneytim66]

How do you value Comstock based on this deal?

[dan_s]

Comstock will go up with natural gas prices and when they convince the Wall Street Gang that their Western Haynesville play is a World Class asset.

[mooneytim66]

Thank You