Southwestern Energy acquires Indigo for $2.7bn
Texas-based Southwestern Energy said June 2 it was acquiring Indigo Natural Resources, among the largest Haynesville shale natural gas producers, for around $2.7bn.
Southwestern said it expected to close the deal in the fourth quarter, complementing its portfolio of US shale reservoirs. Indigo is among the largest private US natural gas producers, drawing on gas from the Haynesville play spread out over northern Louisiana. It has a current production rate of around 1bn ft3/day and is positioned in close proximity to LNG demand corridors along the US Gulf Coast.
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“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 CEO Bill Way said. “Southwestern Energy’s unique combination of a strong balance sheet, high-quality assets and resilient vertically integrated business is positioned to deliver long-term value creation.”
The Appalachia and Haynesville shale basins are among the more lucrative US gas plays. Of the two, however, the US Energy Information Administration expects that only the Haynesville play will yield more gas this month than it did in May.