Advertisement

businessEnergy

Is Dallas billionaire Trevor Rees-Jones nearing a deal with Chesapeake Energy?

The founder of Dallas-based Chief Oil & Gas epitomizes the modern-day Texas wildcatter.

Chesapeake Energy Corp. is in advanced talks to acquire Dallas billionaire Trevor Rees-Jones’ privately owned natural gas producer Chief Oil & Gas Inc. for about $2.4 billion, including debt, according to Reuters.

A deal could be announced as soon as this week, Reuters said, citing people familiar with the matter. The news agency reported in October that Chief Oil & Gas was exploring a sale amid the surge in energy prices that was boosting valuations in the industry.

Chesapeake didn’t immediately respond to an email from Bloomberg seeking comment.

Advertisement

Rees-Jones founded Chief Oil & Gas in 1994 and later became a fracking pioneer in the Barnett Shale in North Texas, using the horizontal drilling technology to extract natural gas reserves from what was considered to be an unconventional play.

Business Briefing

Become a business insider with the latest news.

Or with:

In 2007, the company moved into the Marcellus Shale in Appalachia.

Forbes put Rees-Jones on its cover in 2016, highlighting what was then his seven deals in seven years for $7 billion. Forbes’ real-time billionaire tracker estimates Rees-Jones’ net worth today at $4.5 billion.

Advertisement

If the deal materializes, it would be the second in a matter of months for Chesapeake, the Oklahoma City-based natural gas producer that emerged from bankruptcy last year.

The company agreed to acquire Plano-based Vine Energy Inc., a rival driller controlled by Blackstone Group Inc., in August for about $2.2 billion amid a wave of consolidation in the U.S. shale patch.

The sector has been under pressure from investors to consolidate in order to achieve cost savings, boost dividends and create operators with greater scale following several years of dire financial performance.

Advertisement