Indigo Natural Resources LLC Announces Merger with Southwestern Energy Company

Rhea-AI Summary

Indigo Natural Resources has announced a definitive merger agreement with Southwestern Energy Company (SWN), valued at approximately $2.7 billion. The deal entails $400 million in cash, $1.6 billion in SWN common stock, and $700 million in assumed senior notes due 2029. The merger has received unanimous approval from both companies' boards and is expected to finalize in early Q4 2021, pending regulatory and shareholder approvals. Indigo is a major natural gas producer in the Haynesville Shale.

Positive

• Acquisition valued at $2.7 billion, enhancing Southwestern's asset portfolio.
• Synergy potential from merging operations and market access.

Negative

• Merger dependent on regulatory approvals and shareholder consent, introducing uncertainty.
• Assumed $700 million in senior notes may impact Southwestern's financial leverage.

HOUSTON, June 2, 2021 /PRNewswire/ -- Indigo Natural Resources LLC ("Indigo" or the "Company") today announced that it has entered into a definitive merger agreement with Southwestern Energy Company ("Southwestern", NYSE: SWN), under which Southwestern will acquire Indigo for approximately $2.7 billion. The total consideration of $2.7 billion will be comprised of $400 million in cash, approximately $1.6 billion in SWN common stock and $700 million in aggregate principal amount of assumed 5.375% Senior Notes due 2029 of Indigo (the "Notes"). This release constitutes the public announcement of the intention of Indigo to effect a Change of Control, as defined under the indenture governing the Notes.

The transaction was unanimously approved by each of Southwestern Energy's and Indigo's board of directors. The transaction is expected to close early in the fourth quarter of 2021, subject to regulatory approvals, customary closing conditions and the approval by Southwestern Energy's shareholders.

For more information on the transaction, please refer to ir.swn.com.

About Indigo Natural Resources

Indigo Natural Resources LLC is one of the largest natural gas producers in the Haynesville Shale and the third largest private natural gas producer in the U.S. Indigo is an experienced operator, focused in northern Louisiana with direct access to Gulf Coast markets and associated industrial and LNG demand growth. Indigo is headquartered in Houston, Texas. For more information, please visit the Company's website at www.ndgo.com.

Forward Looking Statements

The information in this announcement includes "forward-looking statements." All statements, other than statements of historical fact, included in this announcement regarding Indigo's strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management are forward-looking statements.  When used in this announcement, the words "could," "believe," "anticipate," "intend," "estimate," "expect," "will", "project" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on Indigo's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. The forward-looking statements are dependent upon events, risks and uncertainties that may be outside Indigo's control. Actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, market prices for natural gas and NGLs (including geographic basis differentials), the COVID-19 pandemic and its potential to impact Indigo's operations and the operations of Indigo's contractors and suppliers, production volumes, estimates of proved, probable and possible reserves, capital expenditures, lack of availability of drilling and production equipment and services, economic and competitive conditions, drilling results, regulatory changes, availability of capital and other uncertainties, all of which are difficult to predict. Factors that could affect the closing of the merger include regulatory approvals, customary closing conditions and the approval by Southwestern Energy's shareholders. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur. Indigo does not undertake any obligation to update any forward-looking statements except as otherwise required by applicable law.

Contact:
Emily Newport
IR@ndgo.com

View original content:http://www.prnewswire.com/news-releases/indigo-natural-resources-llc-announces-merger-with-southwestern-energy-company-301304057.html

SOURCE Indigo Natural Resources LLC

FAQ

What is the purpose of the merger between Southwestern Energy and Indigo Natural Resources?

The merger aims to enhance Southwestern's asset portfolio in the natural gas sector through Indigo's significant production capabilities.

When is the merger between SWN and Indigo expected to close?

The merger is anticipated to close in early Q4 2021, subject to regulatory and shareholder approvals.

What are the financial terms of the SWN and Indigo merger?

The merger is valued at approximately $2.7 billion, including $400 million in cash, $1.6 billion in SWN stock, and $700 million in assumed senior notes.

What are the potential risks associated with the SWN and Indigo merger?

Key risks include the need for regulatory approvals and shareholder consent, which may delay or hinder the completion of the merger.