Southwestern Energy (SWN) has executed a definitive purchase and sale agreement with Howard Midstream Energy to sell SWN’s gathering assets located in Bradford and Lycoming counties in northeastern Pennsylvania for US$500 million. The assets include approximately 100 mi. of natural gas gathering pipeline, with nearly 600 MMcf/d of capacity.
The proceeds from the transaction will be used to substantially repay borrowings under SWN’s $500 million term loan facility that matures in December 2016. The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2015.
"We are excited to have this deal in place as it represents a major step toward completing our acquisition financing plan that we previously announced," remarked Steve Mueller, Chairman and CEO of SWN. "With this deal, we are well on our way to achieving the $600 million to $800 million in divestiture proceeds announced as part of that plan."
Image from SWN