Operational Updates | General News

Southwestern to 'Reposition Portfolio'; Mulls Fate of Fayetteville Assets

Share Print Bookmark    |    Wednesday,February 07,2018

Southwestern Energy announced that it is working to reposition its portfolio and focus in on its most lucrative assets.

The biggest takeaway is that Southwestern will likely unload its assets in the Fayetteville play - both upstream and midstream.

Highlights:

• Actively pursue strategic alternatives for the Fayetteville Shale E&P and related midstream gathering assets;

• Identify and implement structural, process and organizational changes to further reduce costs;

• Utilize funds realized from the foregoing to reduce debt, supplement Appalachia development capital, potentially return capital to shareholders, and for general corporate purposes.

Bill Way, President and Chief Executive Officer, talked about the strategy: "These announced initiatives continue a series of strategic actions that began in early 2016 to reposition our company to compete and win in the future. Our teams have done a tremendous job in de-risking and enhancing the value of our portfolio. Our Appalachia assets produce industry-leading returns, with a growing, higher value liquids component, and will soon be capable to self-fund future growth. We are now in a position to further advance our opportunities in Appalachia, to deliver sustainable, value-driven growth and greater returns for our shareholders, all while maintaining our disciplined capital investing commitment."

Mr. Way continued, "Fayetteville is a large-scale, low decline, cash flow generating asset with identified, low-risk future development opportunities and a world-class operating team. The future success of Southwestern Energy will always be underpinned by the legacy of our Fayetteville asset and our employees who will continue to build on that foundation."