Houston, Texas – June 9, 2016…Southwestern Energy Company (NYSE: SWN) announced today that it has entered into a definitive agreement with Antero Resources Corporation to sell approximately 55,000 net acres in West Virginia for $450 million. The cash proceeds from the transaction are expected to be used to reduce the principal balance of the company’s $750 million term loan due in November 2018.
The properties are located in Doddridge, Harrison, Marion, Monongalia, Pleasants, Ritchie, Tyler and Wetzel Counties and are currently producing from the Marcellus Shale. Net production from this acreage is approximately 14 MMcfe per day, primarily from nonoperated wells, and proved reserves on this acreage were 11 Bcfe as of December 31, 2015. The Company has no current plans to drill on these properties before 2023.
“This transaction is one step on delivering on the commitment we made to strengthen our balance sheet in 2016,” remarked Bill Way, President and Chief Executive Officer of Southwestern Energy. “We are bringing forward the value of acreage that is much longer dated in our development plans, enabling us to take action and proactively reduce outstanding debt. Together with the progress we are making on margin enhancement, this sale further strengthens both the Company’s financial flexibility and our bridge to value-added growth for shareholders.”
The transaction is expected to close in the third quarter of 2016, subject to customary closing conditions and purchase price adjustments.
Southwestern Energy Company is an independent energy company whose wholly owned subsidiaries are engaged in natural gas and oil exploration, development and production, natural gas gathering and marketing. Additional information on the company can be found on the Internet at http://www.swn.com.