Southwestern Energy has completed the sale of its Fayetteville exploration, production, and midstream assets to Flywheel Energy for USD 1.865 billion in cash. Proceeds will be used to retire senior notes of 900 million, retire its revolving credit facility balance, repurchase stock up to the remainder of the 200 million buyback program, and invest in Appalachia assets over the next 2 years.
The transaction resulted in net proceeds of 1.65 billion following customary adjustments due primarily to the net cash flow from the economic effective date of July 1, 2018 to the closing date. Proceeds will be held in cash and cash equivalents until applied. Southwestern's 4th quarter production guidance will be reduced by approximately 19 Bcf due to the sale. Flywheel is backed by Kayne Private Energy Income Funds.