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Southwestern Adds Natural Gas Heft in Haynesville-Bossier with GEP Takeover Completed Energy Monitor Worldwide Southwestern Adds Natural Gas Heft in Haynesville-Bossier with GEP Takeover CompletedSouthwestern Energy Co. has completed its takeover of GEP Haynesville, fortifying the Houston independents natural gas portfolio. The company in November agreed to pay $1.85 billion for GEP, the third-largest private explorer in the Haynesville and Middle Bossier formations. The transaction boosts Southwesterns Haynesville scale by 700 MMcf/d, giving it total estimated output of 4.7 Bcfe/d. The deal, management said, expands exposure to the Gulf Coast, where liquefied natural gas export and industrial demand is surging The transaction builds further scale in the Haynesville, management said. GEP deepens the companys inventory, improves key financial metrics, including margins, returns and per-share ratios, fortifies Southwesterns financial strength and enhances the companys leading presence in the two premier natural gas basins in the U.S. Southwestern is a leading gas producer in Appalachia, too. With GEP, Southwestern adds around 700 drilling locations across the Haynesville with an estimated 2.2 Tcfe of proved reserves. Southwesterns proved reserves were expected to approach 20.9 Tcfe by bolting on GEP. The GEP takeover was on the heels of Southwesterns purchase in September of Haynesville pure-play Indigo Natural Resources LLC, another private operator. GEP acquired its Haynesville portfolio in 2015 from Ovintiv Inc. predecessor Encana Corp. The GEP arm began as a joint venture of GeoSouthern Haynesville LP and funds managed by GSO Capital Partners LP. According to Southwestern, GEP had existing 2022 hedge positions for around 35% of its expected gas production at an average price of $2.89/Mcf. GEP did not have existing hedge positions beyond 2022. |
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