Southwestern Energy Announces Reaffirmation of Credit Facility and Approved Increase Upon Closing of Acquisition
October 08 2020 - 5:02PM
Business Wire
Southwestern Energy Company (NYSE: SWN) today announced its
borrowing base was reaffirmed at $1.8 billion during its fall
semi-annual redetermination. Additionally, upon the close of the
Montage Resources acquisition, the Company’s borrowing base and
bank commitments will increase to $2.0 billion, with asset coverage
exceeding the Company’s borrowing base level.
“The recent supportive actions by our bank group in this
challenging market are further evidence of our financial strength
and the positive reception of our acquisition of Montage Resources.
We sincerely value the strong relationships with our bank group and
appreciate the confidence that the participating banks demonstrated
in us throughout the process with their increased commitments,”
said Bill Way, Southwestern Energy President and Chief Executive
Officer.
“Our existing deep inventory of premium, Tier 1 locations in
Appalachia supplemented by the high-quality assets of Montage,
provide us with expanded asset coverage above our borrowing base.
The acquisition and associated capital market transactions further
enhance the financial resilience of Southwestern Energy and
solidify our path to meaningful free cash flow generation and debt
reduction while delivering differentiated shareholder value,”
continued Way.
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
This news release contains forward-looking statements.
Forward-looking statements relate to future events and anticipated
results of operations, business strategies, and other aspects of
our operations or operating results. In many cases you can identify
forward-looking statements by terminology such as “anticipate,”
“intend,” “plan,” “project,” “estimate,” “continue,” “potential,”
“should,” “could,” “may,” “will,” “objective,” “guidance,”
“outlook,” “effort,” “expect,” “believe,” “predict,” “budget,”
“projection,” “goal,” “forecast,” “model,” “target” or similar
words. Statements may be forward looking even in the absence of
these particular words. Where, in any forward-looking statement,
the Company expresses an expectation or belief as to future
results, such expectation or belief is expressed in good faith and
believed to have a reasonable basis. However, there can be no
assurance that such expectation or belief will result or be
achieved. The actual results of operations can and will be affected
by a variety of risks and other matters including, but not limited
to, changes in commodity prices (including geographic basis
differentials); changes in expected levels of natural gas, natural
gas liquids and oil reserves or production; impact of reduced
demand for our products and products made from them due to
governmental and societal actions taken in response to the COVID-19
pandemic; operating hazards, drilling risks, unsuccessful
exploratory activities; natural disasters and epidemics; limited
access to capital or significantly higher cost of capital related
to illiquidity or uncertainty in the domestic or international
financial markets; international monetary conditions; the risks
related to the discontinuation of LIBOR and/or other reference
rates that may be introduced following the transition, including
increased expenses and litigation and the effectiveness of interest
rate hedge strategies; unexpected cost increases; potential
liability for remedial actions under existing or future
environmental regulations; failure or delay in obtaining necessary
regulatory approvals; potential liability resulting from pending or
future litigation; general domestic and international economic and
political conditions, including the impact of COVID-19; the impact
of a prolonged federal, state or local government shutdown and
threats not to increase the federal government’s debt limit; as
well as changes in tax, environmental and other laws, including
court rulings, applicable to our business. Other factors that could
cause actual results to differ materially from those described in
the forward-looking statements include other economic, business,
competitive and/or regulatory factors affecting our business
generally as set forth in our filings with the Securities and
Exchange Commission. Unless legally required, Southwestern Energy
Company undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20201008006038/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
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