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Southwestern Energy to divest Fayetteville Shale business for $1.865bn

Staff Writer |
Southwestern Energy Company announced that it has entered into a definitive agreement with Flywheel Energy, 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.

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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.

Bill Way, president and CEO of Southwestern Energy, said, "The sale of Fayetteville represents a pivotal and deliberate step towards fulfilling our promise to reposition Southwestern Energy to capture greater returns from our higher margin Appalachia assets.

"We are pleased with the process, the outcome and the resulting valuation of this significant asset. I’d like to thank the employees of Fayetteville for their years of extraordinary service to the Company and its shareholders, particularly during this process."

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