Southwestern Energy to acquire Montage Resources
Monday, August 17, 2020
Houston-based Southwestern Energy recently announced its intent to acquire Montage Resources in an all-stock deal, according to the Journal of Petroleum Technology. The acquisition will make the buyer the third-largest producer of the gas-rich Appalachian Basin.
Montage holds about 325,500 acres in the Marcellus Shale and Utica Shales that span Ohio, West Virginia, and Pennsylvania.
In the deal, each of Montage’s shares will be exchanged for about 1.8 of Southwestern’s shares. Based on the closing price of 11 August places, Montage is valued at around $204 million.
Upon closing, Southwestern’s production will grow by nearly a quarter to around 3 Bcfe per day and its acreage position will grow by more than 70% to about 787,200 acres.
Learn more: Journal of Petroleum Technology > Shale consolidation: Two US Tigh-Gas Producers Merge in All Stock-Deal
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