Blockbuster Natural-Gas Merger Is Almost Too Perfect

Chesapeake EnergyIt is merger with South West Energy would create the largest natural gas producer in the United States. It would also create an investment story so compelling that it carries its own risks.

While merger mania has swept the energy sector since Last year, natural gas-focused producers have been relatively less active in closing deals. The commodity price has been low and volatile, a difficult combination for transactions that lend themselves to large bid-ask spreads or gaps between ask and offer prices, notes Andrew Dittmarsenior vice president at Enverus Intelligence Research.