Southwestern Energy to Buy Haynesville Producer Indigo Natural Resources in $2.7 Billion Deal

U.S. gas producer Southwestern Energy Co. has entered a definitive merger agreement with Haynesville producer Indigo Natural Resources LLC to acquire Indigo for about $2.7 billion, the company said on June 2.

Southwestern Energy-Indigo-Natural-Resources-acquisition

Two premier US natural gas basins, one leading natural gas company. (Source: Business Wire)

For Southwestern Energy Co. CEO Bill Way, moving into the Haynesville Shale with the $2.7 billion acquisition of privately held Indigo Natural Resources LLC was a “logical move,” given the Appalachian Basin player’s natural gas focus and strategic opportunities ahead.

Looking at the strengths of the two companies, free cash flow generation, balance sheet power emerging from two premier gas basins plus large-scale inventory with an attractive valuation, “it made logical sense that we pursued it,” Way told analysts June 2 following news of the acquisition.

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Velda Addison

Velda Addison is the senior editor of digital media for Hart Energy’s editorial team. She covers exploration and production.