Southwestern Energy Completes Acquisition of Montage Resources
November 13 2020 - 7:55AM
Business Wire
Southwestern Energy Company (NYSE: SWN) today announced that it
has completed the acquisition of Montage Resources following
approval by Montage shareholders. Under the previously announced
credit agreement amendment, the Company’s borrowing base on its
revolving credit facility has been increased to $2.0 billion.
“This strategic transaction represents another deliberate step
in our disciplined repositioning strategy. We strengthened our
position as a premier producer in the Appalachia basin with an
at-market, accretive acquisition that provides a step change in
free cash flow. Starting today, we are delivering on our commitment
of at least $30 million in synergies, and we look forward to
unlocking additional value as the newly combined team brings
innovation and demonstrated operational efficiencies to these high
quality, complementary assets,” said Bill Way, Southwestern Energy
President and Chief Executive Officer. “We welcome the field
operating team to Southwestern Energy and thank the entire Montage
Resources organization for their hard work and dedication that led
to this transaction.”
Given the November 13, 2020 closing, there is no change to the
Company’s fourth quarter and full year 2020 guidance except for the
inclusion of 49 days of production from the Montage properties as
indicated in the table below. As of the closing of the transaction,
the Company’s daily net production rate increases to over 3 Bcfe
per day.
UPDATED PRODUCTION GUIDANCE
SWN Guidance
Pro Forma Guidance(1)
Q4 2020
Total Year 2020
Q4 2020
Total Year 2020
Gas (Bcf)
177 – 184
661 – 675
200 – 205
687 – 692
Oil/Condensate (MBbls)
1,275 – 1,375
5,057 – 5,257
1,475 – 1,575
5,251 – 5,351
NGLs (MBbls)
6,750 – 7,025
25,339 – 25,889
7,000 – 7,275
25,926 – 26,201
Total (Bcfe)
225 – 234
843 – 861
251 – 258
874 – 881
(1)
SWN guidance dated July 30, 2020, updated
to include 49 days of production from properties previously owned
by Montage Resources.
About Southwestern Energy
Southwestern Energy Company is an independent energy company
engaged in natural gas, natural gas liquids and oil exploration,
development, production and marketing. For additional information,
visit our website www.swn.com.
Forward Looking Statement
Certain statements and information herein may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. The words “believe,”
“expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,”
“would,” “could,” “attempt,” “appears,” “forecast,” “outlook,”
“estimate,” “project,” “potential,” “may,” “will,” “are likely,”
“guidance,” “goal,” “model,” “target,” “budget” and other similar
expressions are intended to identify forward-looking statements,
which are generally not historical in nature. Statements may be
forward looking even in the absence of these particular words.
Examples of forward-looking statements include, but are not limited
to, statements regarding generation of free cash flow. These
forward-looking statements are based on our current expectations
and beliefs concerning future developments and their potential
effect on us. The forward-looking statements contained in this
document are largely based on our expectations for the future,
which reflect certain estimates and assumptions made by our
management. These estimates and assumptions reflect our best
judgment based on currently known market conditions, operating
trends, and other factors. Although we believe such estimates and
assumptions to be reasonable, they are inherently uncertain and
involve a number of risks and uncertainties that are beyond our
control. As such, management’s assumptions about future events may
prove to be inaccurate. For a more detailed description of the
risks and uncertainties involved, see “Risk Factors” in our most
recently filed Annual Report on Form 10-K, subsequent Quarterly
Reports on Form 10-Q, Current Reports on Form 8-K, and other SEC
filings. We do not intend to publicly update or revise any
forward-looking statements as a result of new information, future
events, changes in circumstances, or otherwise. These cautionary
statements qualify all forward-looking statements attributable to
us, or persons acting on our behalf. Management cautions you that
the forward looking statements contained herein are not guarantees
of future performance, and we cannot assure you that such
statements will be realized or that the events and circumstances
they describe will occur. Factors that could cause actual results
to differ materially from those anticipated or implied in the
forward-looking statements herein include, but are not limited to:
the timing and extent of changes in market conditions and prices
for natural gas, oil and natural gas liquids (“NGLs”), including
regional basis differentials and the impact of reduced demand for
our production and products in which our production is a component
due to governmental and societal actions taken in response to the
COVID-19 pandemic; our ability to fund our planned capital
investments; a change in our credit rating, an increase in interest
rates and any adverse impacts from the discontinuation of the
London Interbank Offered Rate; the extent to which lower commodity
prices impact our ability to service or refinance our existing
debt; the impact of volatility in the financial markets or other
global economic factors, including the impact of COVID-19;
difficulties in appropriately allocating capital and resources
among our strategic opportunities; the timing and extent of our
success in discovering, developing, producing and estimating
reserves; our ability to maintain leases that may expire if
production is not established or profitably maintained; our ability
to realize the expected benefits from the acquisition of Montage
Resources Corporation (“Montage Acquisition”); costs in connection
with the Montage Acquisition; integration of operations and results
subsequent to the Montage Acquisition; our ability to transport our
production to the most favorable markets or at all; the impact of
government regulation, including changes in law, the ability to
obtain and maintain permits, any increase in severance or similar
taxes, and legislation or regulation relating to hydraulic
fracturing, climate and over-the-counter derivatives; the impact of
the adverse outcome of any material litigation against us or
judicial decisions that affect us or our industry generally; the
effects of weather; increased competition; the financial impact of
accounting regulations and critical accounting policies; the
comparative cost of alternative fuels; credit risk relating to the
risk of loss as a result of non-performance by our counterparties;
and any other factors listed in the reports we have filed and may
file with the SEC that are incorporated by reference herein. All
written and oral forward-looking statements attributable to us are
expressly qualified in their entirety by this cautionary
statement.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201113005391/en/
Investor Contact Brittany Raiford Director, Investor
Relations (832) 796-7906 brittany_raiford@swn.com
Bernadette Butler Investor Relations Advisor (832) 796-6079
bernadette_butler@swn.com
Southwestern Energy (NYSE:SWN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Southwestern Energy (NYSE:SWN)
Historical Stock Chart
From Sep 2023 to Sep 2024