Chesapeake, Southwestern merger would make strategic sense, says JPMorgan

JPMorgan says a potential combination between Chesapeake (CHK) and Southwestern Energy (SWN), as reported by Reuters, would make strategic sense given the potential to “wring out material cost synergies” from their overlap in the Marcellus and Haynesville Shale plays. In addition, JPMorgan’s credit research team believes that a potential deal would have favorable credit implications for both companies, the analyst tells investors in a research note.