Southwestern Energy Builds Position with Montage Resources Deal
The transaction, expected to close in the fourth quarter, would make Southwestern the third largest producer in Appalachia.
Southwestern Energy operates assets in Northeast Appalachia and Southwest Appalachia. (Source: Southwestern Energy)
Natural gas producer Southwestern Energy Co. said Aug. 12 it has entered a deal to acquire Montage Resources Corp. in an all-stock transaction, growing its position in Appalachia’s Utica and Marcellus shale plays.
The implied value of the transaction is $213 million based on Southwestern Energy’s Aug. 11 per share closing trading price, the company said in a filing with the U.S. Securities and Exchange Commission.
The deal comes about a year and a half after Montage was formed by the combination of Eclipse Resources and Blue Ridge Mountain Resources.