Southwestern to buy natgas producer GEP Haynesville for $1.85 B
Southwestern Energy Co. agreed to buy Blackstone-backed Geosouthern's assets in the Haynesville for about $1.85 B as it looks to expand its footprint in the shale field, which is in the vicinity of the U.S. Gulf Coast export hub.
Producers are consolidating in the U.S. shale as oil and natural gas prices recover from last year's pandemic blow to trade at multi-year highs this month. U.S. gas futures recently touched 12-year highs and prices have skyrocketed in Europe and Asia, where buyers are desperate to lock down supply to deal with growing needs for power.
The deal will help Southwestern in the Haynesville by adding production of about 700 million cubic feet of gas per day and expanding its exposure to the U.S. Gulf Coast export hub as global demand for gas has been booming. The total consideration of $1.85 B includes $1.325 B in cash and about $525 MM in Southwestern shares.
Haynesville LLC is a joint venture formed by GeoSouthern Haynesville and a Woodlands, Texas-based private-equity firm.
Reporting by Arathy S Nair in Bengaluru; Editing by Anil D'Silva
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