Southwestern Energy to sell Fayetteville shale business for $1.865 billion
SPRING, Texas -- Southwestern Energy Company has announced that it 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, which was unanimously approved by Southwestern Energy’s directors, has an effective date of July 1, 2018, and is expected to close in December 2018.
The Company also announced:
- A conditional tender offer for up to $900 million of its Senior Notes, as described in a separate press release also issued today;
- A share repurchase program of up to $200 million; and
- Allocation of up to $600 million over the next two years, in aggregate, supplementing cash flow to further develop the Company’s liquids-rich Appalachia assets and accelerate the path to self-funding. Until investments are made, these funds will be used to repay credit facility borrowings.
