SPRING, Texas – (COMMERCIAL THREAD) – Southwestern Energy Company (NYSE: SWN) (the âCompanyâ) announced today that it has completed the acquisition of GEP Haynesville, LLC (âGEPâ). The transaction strengthens the Haynesville scale, deepens the company’s inventory, improves key financial metrics including margins, yields and per share ratios, strengthens SWN’s financial strength and strengthens the company’s leading presence. company in the two major natural gas basins in the United States.
In December, the Company finalized a $ 1.15 billion offer of 4.75% senior notes due 2032 and a $ 550 million institutional term loan to fund the cash consideration of the acquisition. and the $ 300 million offering of its 2025 Senior Notes. The Company plans to release guidance for 2022, including the acquired properties, in conjunction with the release of its fourth quarter results.
About Southwestern Energy
Southwestern Energy Company (NYSE: SWN) is a leading U.S. producer and distributor of natural gas and natural gas liquids focused on the responsible development of large-scale energy assets in the nation’s most prolific shale gas basins. SWN’s performance-driven strategy strives to create lasting value for its stakeholders by leveraging its size, financial strength and operational execution. For more information, please visit www.swn.com and www.swn.com/responsibility.
Certain statements and information contained in this document may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended. . The words “believe”, “expect”, “anticipate”, “plan”, “predict”, “intend”, “seek”, “foresee”, “should”, “should”, “could “,” Will attempt “,” appears “,” forecast “,” prospect “,” estimate “,” project “,” potential “,” could “,” will “,” probable “,” orientation “,” objective “, “Model”, “target”, “budget” and other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. Statements may be forward-looking even without those particular words. Examples of forward-looking statements include, but are not limited to, statements regarding the costs associated with the acquisition of GEP Haynesville, LLC (the âGEPH Acquisitionâ), estimated financial measures giving effect to the GEPH Acquisition, including the estimate of end-of-year 2021 reserves and associated price assumptions, expected natural gas production from the properties as part of the acquisition of GEPH, repayment of our debt, total amount of our debt, our financial position , our business strategy, production, reserve growth and other plans and targets for our future operations and free cash flow generation. These forward-looking statements are based on our current expectations and beliefs about future developments and their potential effect on us. The forward-looking statements contained in this document are largely based on our expectations for the future, which reflect certain estimates and assumptions made by our management. These estimates and assumptions reflect our best judgment based on currently known market conditions, operating trends and other factors. Although we believe these estimates and assumptions are reasonable, they are inherently uncertain and involve a number of risks and uncertainties which are beyond our control. As a result, management’s assumptions regarding future events may prove to be inaccurate. For a more detailed description of the risks and uncertainties involved, see âRisk Factorsâ in our last annual report filed on Form 10-K, Subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other SEC reports. deposits. We do not intend to publicly update or revise any forward-looking statements as a result of new information, future events, changes in circumstances or otherwise. These cautionary statements qualify all forward-looking statements that are attributable to us or that are of persons acting on our behalf. Management warns you that the forward-looking statements contained herein are not guarantees of future performance, and we cannot assure you that such statements will come true or that the events and circumstances they describe will occur. Factors that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements contained in this document include, but are not limited to: the timing and extent of changes in market conditions and prices of natural gas, petroleum and natural gas liquids (“NGLs”), including regional base differentials and the impact of reduced demand for our production and products in which our production is a component in due to government and societal actions taken in response to COVID-19 or other public health crises and any business or government policies and actions designed to protect the health and safety of individuals or government policies or actions aimed at maintain the functioning of national or global economies and markets; our ability to accurately estimate the future amount of natural gas produced on the properties as part of the GEPH acquisition; our ability to fund our planned capital investments; a change in the amount of our debt; a change in our credit rating, an increase in interest rates and any negative impact of the stop of the interbank offered rate in London; the extent to which declining commodity prices affect our ability to service or refinance our existing debt; the impact of financial market volatility or other global economic factors; difficulties in appropriately allocating capital and resources among our strategic opportunities; the timing and extent of our success in discovering, developing, producing and estimating reserves; our ability to maintain leases that may expire if production is not established or maintained profitably; our ability to realize the expected benefits of recent acquisitions or the acquisition of GEPH; costs related to the Acquisition of GEPH; the integration of operations and results subsequent to the Acquisition of GEPH; our ability to transport our production to the most favorable markets or not at all; the impact of government regulations, including changes in law, the ability to obtain and retain permits, any increase in severance pay or similar taxes, and laws or regulations relating to hydraulic fracturing, climate and over-the-counter derivatives; the impact of the adverse outcome of any material litigation against us or of legal decisions that affect us or our industry in general; the effects of time; increased competition; the financial impact of accounting regulations and critical accounting policies; the comparative cost of alternative fuels; credit risk related to the risk of loss resulting from the non-performance of our counterparties; and all other factors listed in reports we have filed and may file with the SEC which are incorporated by reference herein. All written and oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.
Use of non-GAAP information
This press release contains non-GAAP financial measures, such as free cash flow, free cash flow, net debt and Adjusted EBITDA, including certain key statistics and estimates. We present our financial results in accordance with accounting principles generally accepted in the United States of America (âGAAPâ). However, management believes that certain non-GAAP performance measures may provide users of this financial information with additional meaningful comparisons between current results and the results of our peers and prior periods. Please see the appendix for definitions of non-GAAP financial measures that are based on reconcilable historical information.
The financial, operational, industry and market projections, estimates and targets in this press release are forward-looking statements that are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of SWN and GEP. The assumptions and estimates underlying the projected, expected or target results are inherently uncertain and are subject to a wide variety of significant business, economic, regulatory and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the industry and market projections, projections, estimates and objectives, including the assumptions, risks and uncertainties described in the “forward-looking statements” above.