Deal Insight
Southwestern acquires Appalachian player Montage Resources for US$991 million
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Southwestern Energy announced it will be acquiring Montage Resources in an all-equity deal, for an enterprise value of US$991 million, including US$213 million equity and the assumption of US$778 million net debt. Upon close of the deal, Southwestern will become the third largest Appalachia producer. Many in the industry are questioning the value add for Southwestern, but after examining all relevant variables, it makes sense for one clear reason. Southwestern has recently undergone a strategic shift to allotting more capex dollars towards their dry gas assets, and adding Montage to their asset-base extends their dry gas inventory.
Table of contents
- Executive summary
- Transaction details
- Upstream assets
- Deal analysis
- Upsides and risks
- Strategic rationale
- Oil & gas pricing and assumptions
Tables and charts
This report includes the following images and tables:
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Executive summary: Table 1Southwestern and Montage Appalachian wellsMontage forecasted asset-level cash flow
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Upstream assets: Table 1Montage valuation breakdown (NPV10)Deal analysis: Table 1Deal analysis: Table 2Deal analysis: Table 3Montage FT forecastSouthwestern and Montage maturitiesOil & gas pricing and assumptions: Table 1Oil & gas pricing and assumptions: Table 2
What's included
This report contains:
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