Transaction Details: 

Southwestern Energy has agreed to sell its entire Fayettville Shale portfolio to Kayne Anderson-backed private company, Flywheel Energy, for $1.865 billion in cash.

This deal was closed on November 4, 2018.

This deal results in Southwestern exiting the play.

Flywheel (formerly Valorem Energy) just picked up a $700MM equity commitment from Kayne Anderson to help fund the deal.

Asset Details:

• 915,000 net acres

• 4,033 operated producing wells

• 3.7 Tcf of proved reserves as of year-end 2017

• 350 Locations @ 2.75 gas, and 1125 Locations at $3.25 gas.

• Anticipated 2019 production of 225-230 Bcf and associated midstream gathering infrastructure and compression (net operated production from the assets was 705 MMcf/d in Q2 2018)

• The assets span Johnson, Van Buren, Pope, Conway, Cleburne, White, Faulkner and Stone counties, Arkanses.

In addition, the buyer will assume approximately $438 million of future contractual liabilities after taking into account certain obligations retained by the Company.

The transaction, which was unanimously approved by Southwestern Energy's directors, has an effective date of July 1, 2018, and is expected to close in December 2018.

Mid-Continent Deal Activity In Last 12 Months