Want to know the truth? Though rumors were floating long before the deal got through. Trevor Ree-Jones, a privately-owned natural gas producer, has gone in for advanced talks with Chesapeake Energy Corp. Reuters News Agency reports that the Dallas billionaire, the chief of Oil & Gas Inc., has decided to acquire the $2.4 billion of the company and the debt it holds.
How The Deal Came About
Those in the know-how feel that the deal would be done with at the end of the week. The deal came about when the global energy prices surged, leading to leverage in the valuations for the oil & gas industry.
Oil & Gas Inc. was founded in 1994 and went on to become a leader in the area of North Texas. They employed horizontal drilling technology, enabling them to extract the natural gas reserves in Barnett Shale. Though considered unconventional, it helped the Dallas Billionaire to be successful.
A move to the Marcellus Shale in 2007 in Appalachia changed the fortunes. By 2016, Ree-Jones was making deal after deal, raising his net worth to $4.5 billion as mentioned by Forbes, where the real-time billionaire tracker tagged him.
What Does It Mean To The Oil Industry
The deal will pull Chesapeake from the financial doldrums. The deal with Oil & Gas Inc. would be a second deal in months for the Oklahoma City-based natural gas producer to get out of bankruptcy since the past year.
Trevor Ree-Jones has known how to wipe out competition and acquired the Plano-based Vine Energy Inc. for $2.2 billion and consolidated his position In Shale. This consolidation plays a huge role in cost savings and helps boost dividends. It is a move that will enable operators to go on a bigger scale after years of a downturn.