Southwestern Taps Derivative Position to Support Recent Haynesville Acquisition

The incremental hedge positions are sufficient to cover at least 80% of the expected 2022-24 production from the acquired GEP Haynesville properties, according to the Southwestern Energy release.

Hart Energy Staff

Southwestern Energy Co. announced additional natural gas derivatives that the Spring, Texas-based company said will add financial support for a recent billion-dollar acquisition in the Haynesville Shale.

“Protecting financial strength is one of the core pillars of our strategy,” Bill Way, president and CEO of Southwestern Energy, commented in a company release on Nov. 29.

In early November, Southwestern entered an agreement to acquire GEP Haynesville LLC in a cash-and-stock transaction valued at $1.85 billion. The acquisition of GEP Haynesville, expected to close by year-end, is set to position Southwestern as the largest producer in the Haynesville, a premier natural gas basin with exposure to the LNG corridor and growing demand centers along the U.S. Gulf Coast.

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