Southwestern updates 2021 guidance with Indigo deal completion
Southwestern Energy Co. updated its 2021 guidance, incorporating Haynesville assets acquired in the completed acquisition of Indigo Natural Resources.
In June, the Houston area company announced its deal to acquire the Haynesville shale producer for $2.7 billion (OGJ Online, June 2, 2021).
In the Haynesville, Southwestern Energy company expects to complete the 2021 capital investment program currently in progress, and will average 6 rigs and 2 completion crews, placing 15-20 gross wells to sales. To incorporate the investment in the Haynesville, Southwestern’s expected 2021 capital investment has increased to $1.085-1.145 billion, which also includes the associated increase in capitalization of interest and expense.
Third-quarter 2021 production is expected to reach 302-310 bcfe (18% liquids), fourth-quarter production is expected to be 370-380 bcfe (14% liquids), and total year 2021 production is guided at 1,217-1,235 bcfe (18% liquids).
Free cash flow generation for 2021 is expected to increase to $425-475 million.
The acquisition expands the company’s opportunity set, “adding high-margin Haynesville production and substantial core drilling inventory while providing additional global market access through the LNG corridor,” said Bill Way, president and chief executive officer, in a Sept. 1 statement.
