Southwestern Energy plans to keep spending flat, even with acquisition of Montage
Monday, March 8, 2021
Southwestern Energy Co. plans to keep year-over-year spending and production flat in 2021, even with the acquisition of Montage Resources Corp., according to Natural Gas Intelligence.
Joining many other production and exploration companies, Southwestern focused its plan for 2021 on prioritizing free cash flow generation, “disciplined investment” at maintenance levels and debt reduction.
The announcement comes shortly after the company acquired Montage and gained a foothold in Ohio, making it the third-largest oil and gas producer in the Appalachian Basin with more than 1 Tcfe of production anticipated this year. Southwestern’s acquisition of Montage adds to its core areas in Northeast Pennsylvania and northern West Virginia.
Learn more: Natural Gas Intelligence > Southwestern Drills First Ohio Utica Well after Montage Acquisition
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What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.