Southwestern Energy’s stock surges on report of acquisition talks with Chesapeake Energy

Southwestern Energy Co.
SWN,
+8.20%
shares surged Tuesday following a report that Chesapeake Energy Corp.
CHK,
-0.28%
is looking to buy the natural-gas producer. Southwestern Energy shares rallied more than 7% to an intraday high of $7.33, following a Reuters report that Chesapeake and Southwestern are in preliminary talks, according to sources close to the matter. A combined company — $7.9 billion Southwestern and $11.75 billion Chesapeake — would overtake $18 billion EQT Corp.
EQT,
+1.40%
as the largest U.S. natural-gas producer by market cap, according to FactSet. Chesapeake shares rose less than 1%, and EQT shares rose 2%.