Southwestern Energy to Sell Fayetteville Shale Business for $1.865 Billion
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Southwestern Energy Company has entered into a definitive agreement with Flywheel Energy, LLC, a private company backed by Kayne Private Energy Income Funds, to sell its Fayetteville Shale E&P and related midstream gathering assets for $1.865 billion in cash, subject to adjustments and customary closing conditions.
In addition, the buyer will assume approximately $438 million of future contractual liabilities after taking into account certain obligations retained by the company. The transaction was unanimously approved by Southwestern Energy’s directors and is expected to close in December 2018.
“The sale of Fayetteville represents a pivotal and deliberate step towards fulfilling our promise to reposition Southwestern Energy to capture greater returns from our higher margin Appalachia assets. We are pleased with the process, the outcome and the resulting valuation of this significant asset. I’d like to thank the employees of Fayetteville for their years of extraordinary service to the company and its shareholders, particularly during this process,” said Bill Way, president and CEO of Southwestern Energy.
“This transaction is a significant milestone in advancing our strategic plan. Our shareholders will benefit from an optimized portfolio, stronger balance sheet including improved financial flexibility and the return of capital to all shareholders through a share repurchase program. I am grateful for the tireless work of our entire dedicated and talented SWN team that sets the stage for a stronger future,” added Way.
About Southwestern Energy Company
Southwestern Energy Company is an independent energy company whose wholly-owned subsidiaries are engaged in natural gas, natural gas liquids and oil exploration, development, production, gathering and marketing.
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