Southwestern Energy completes $1.87bn Fayetteville shale sale
NYSE-listed natural gas firm Southwestern Energy has completed the sale of its Fayetteville shale assets to Flywheel Energy, a private company backed by Kayne Private Energy Income Funds, for $1.865-billion in cash.
The company will focus its efforts on its natural gas assets in Appalachia, where it owns 500 000 acres.
The proceeds of the sale will be used to retire senior notes of $900-million, retire the outstanding balance under the company’s revolving credit facility, repurchase stock up to the remainder of the company’s $200-million stock buyback programme and invest in Appalachia assets over the next two years, subject to market conditions. Proceeds will be held in cash and cash equivalents until applied.
In July, BHP Billiton sold its Fayetteville assets for about $300-million to Merit Energy as part of its exit from US shale properties.
Southwestern Energy noted that its fourth quarter production guidance would be impacted by a reduction of about 19-billion cubic feet, resulting from the sale of the Fayetteville operations.
Comments
The login details you entered is incorrect. Please try and re-enter your username and password. If you continue having problems, please contact us at subscriptions@creamermedia.co.za for assistance.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
