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Southwestern Energy to acquire Montage Resources

Gasoil News - Published on Thu, 13 Aug 2020

Image Source: Southwestern Energy Montage Resources
Southwestern Energy Company and Montage Resources Corporation have entered into a definitive merger agreement under which Southwestern Energy will acquire Montage Resources in an all-stock transaction. Based on the 3-day average closing share prices of the companies as of August 11, 2020 and under the terms of the agreement, Montage Resources shareholders will receive 1.8656 shares of Southwestern for each Montage Resources share. The transaction is expected to close in the fourth quarter of 2020, subject to customary closing conditions, including the approval of the Montage Resources shareholders.

Highlights include:
Represents a step change in free cash flow; approximately $100 million annual free cash flow beginning in 2021 based on current strip pricing;
Accretive to per share financial metrics as well as leverage, margin and returns;
Anticipated synergies of approximately $30 million in annual G&A savings captured following the transaction close, in addition to operational efficiencies;
Maintains peer leading maturity runway and strong balance sheet;
Combined company will be the third largest producer in Appalachia, expected total equivalent production of approximately 3 Bcfe per day; and
Enhances economic inventory, with investment opportunities in proven, high-return Marcellus super rich and core Utica dry gas windows.

Source :

Posted By : Yogender Pancholi on Thu, 13 Aug 2020
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