Each one in plain English, with the numbers worked through for a shareholder.
23 Dec 2014asset acquisition disposition● NeutralMajor
The Chesapeake acquisition closed December 22, 2014 after a settlement cut the price by about $400 million to roughly $4.975 billion, funded by a $4.5 billion 364-day bridge loan and a $500 million two-year term loan, both fully drawn. Southwestern also agreed to buy about 30,000 acres from Statoil for about $365 million (after adjustment), closing expected in Q1 2015 and funded from the revolving credit facility, and plans to repay the bridge and term loans from asset sales and future debt and equity issuance; shareholders should note possible equity issuance is flagged only as a plan.
On October 14, 2014 Southwestern agreed to buy about 413,000 net acres in West Virginia and southwest Pennsylvania from Chesapeake for about $5.375 billion, expected to close by year-end, with a 5% deposit already paid. It has a $5.0 billion bridge loan commitment from Bank of America and plans to raise permanent debt and equity financing, far larger than its earlier 2013-14 acreage purchases.
Capital Research Global Investors ** reported a SOUTHWESTERN ENERGY CO shareholding of 17,519,996 shares (4.90% of votes) in a periodic institutional filing.
The Colorado Niobrara purchase closed on May 1, 2014: about 312,000 net acres for $180 million before adjustments, from Quicksilver Resources and a Shell subsidiary. The filing also notes an investor presentation posted May 5, 2014, with no details given in the text.
On March 4, 2014 Southwestern agreed to buy about 312,000 net acres of Niobrara oil and gas properties in northwest Colorado for $180 million from Quicksilver Resources and a Royal Dutch Shell subsidiary (SWEPI LP), expected to close in the second quarter of 2014. This is a further acreage purchase following the 2013 Pennsylvania Marcellus deal.
Wellington Management Company, LLP reported a SOUTHWESTERN ENERGY CO shareholding of 15,583,582 shares (4.43% of votes) in a periodic institutional filing.
Capital Research Global Investors ** reported a SOUTHWESTERN ENERGY CO shareholding of 36,750,443 shares (10.40% of votes) in a periodic institutional filing.
On December 16, 2013 Southwestern signed a new unsecured $2.0 billion credit facility maturing December 14, 2018 (two one-year extensions possible, expandable by up to $500 million), led by JPMorgan Chase. It replaces the $1.5 billion facility that was due to expire in February 2016, with no prepayment penalties on the old one.
The Pennsylvania Marcellus purchase from Chesapeake and its partner closed on May 15, 2013 as planned: about 162,000 net acres for roughly $93 million before adjustments, paid for using the revolving credit facility.
Southwestern agreed on April 25, 2013 to buy about 162,000 net acres of Pennsylvania Marcellus Shale gas properties from Chesapeake Energy and one of its partners for about $93 million, with closing expected around May 15, 2013. The properties currently produce about 2 MMcf per day from 17 gross wells (1.2 net).
