Southwestern Energy Acquires Montage Resources in All-Stock Transaction

Updated 10 months ago

Southwestern Energy has entered a definitive agreement to acquire Montage Resources in an all-stock transaction in August 2020. Montage shareholders will receive 1.8656 shares of Southwestern for each Montage share based on the three-day average closing price of the companies on August 11th, targeting a zero premium. Citi and Goldman Sachs advised Southwestern, and Barclays advised Montage.

The combined company will have an expected total production of 3.0 billion cubic feet equivalent per day. The company anticipates a $100 million improvement in free cash flow beginning in 2021 and $30 million in annual general and administrative savings captured following the transaction close. Concurrently, Southwestern commenced an underwritten public offering of 55,000,000 shares of common stock with the proceeds going to retire a portion of Montage's 8.875% senior notes due 2023. The deal closed in November 2020.

Bill Way, Southwestern Energy President & CEO

As we have consistently stated, we are firm believers in the benefits of value-creating consolidation. This transaction further solidifies the company’s position as a premier Appalachia operator and provides additional scale and synergies strengthened by our leading operational execution.