Two premier US natural gas basins, one leading natural gas company <\/i><\/p>\n
SPRING, Texas–(BUSINESS WIRE<\/a>)– This press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20210602005565\/en\/<\/a><\/p>\n SWN + Indigo Acreage Position (Graphic: Business Wire)<\/p>\n<\/div>\n \n\u201cToday we are proud to announce another accretive transaction that will benefit the Company\u2019s shareholders for years to come. This acquisition enhances Southwestern\u2019s position as a leading natural gas producer and aligns with our disciplined strategy to generate free cash flow, enhance our balance sheet, optimize performance and build scale. Indigo has done a terrific job building its business, and its balance sheet strength, low cost structure and high-quality acreage position in the core of the Haynesville play accelerates the delivery of our strategic goals,\u201d said Bill Way, Southwestern Energy President and Chief Executive Officer.\n<\/p>\n \nWay continued, \u201cOur footprint now extends across the two premier natural gas basins in the country and includes top-tier dry gas and liquids rich inventory. The value of this high-quality inventory is further enhanced by our diverse transportation portfolio providing access to premium markets in the Gulf Coast and within Appalachia. Southwestern Energy\u2019s unique combination of a strong balance sheet, high-quality assets and resilient vertically integrated business is positioned to deliver long-term value creation.\u201d\n<\/p>\n \nIndigo is one of the largest private US natural gas producers, with core dry gas assets across the stacked pay Haynesville and Bossier zones in northern Louisiana. Its high-margin assets are located in close proximity to the growing demand in the Gulf Coast LNG corridor. Indigo currently produces 1.0 Bcf per day net and expects to produce approximately 1.1 Bcf per day net upon closing. As of March 31, 2021, and adjusted for the recent sale of its non-core Cotton Valley assets, Indigo had $631 million of net debt and a leverage ratio of 1.1 times.\n<\/p>\n Outlook<\/b><\/p>\n \nSouthwestern Energy expects to invest at maintenance capital levels again in 2022, with activity across all of its operating areas. On the acquired acreage, the Company expects to run a 4 rig program in 2022, placing 30 to 40 wells to sales. With a maintenance capital program, the Company projects 14 years of economic inventory at current strip prices across its assets in Appalachia and Haynesville.\n<\/p>\n \nPreliminary 2022 estimates for certain key metrics of the newly combined enterprise are shown below. Estimates are based on $2.75 NYMEX and $58 WTI.\n<\/p>\n
\nSouthwestern Energy Company (NYSE: SWN) (the \u201cCompany\u201d or \u201cSouthwestern\u201d) today announced that it has entered into a definitive merger agreement with Haynesville producer Indigo Natural Resources, LLC (\u201cIndigo\u201d) under which it will acquire Indigo for approximately $2.7 billion. The transaction is expected to close early in the fourth quarter of 2021, subject to customary closing conditions. Transaction highlights include:\n<\/p>\n![\"SWN](\"https:\/\/mms.businesswire.com\/media\/20210602005565\/en\/882194\/4\/SWN_Map.jpg\")
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