Spring-Based Southwestern Energy Acquires Indigo For $2.7 Billion

SPRING, TX — Southwestern Energy reached an agreement to acquire Indigo Natural Resources for $2.7 billion, according to a news release, expanding its operations into the Gulf Coast.

The sale, consisting of cash and Southwestern Energy stock, is expected to close early in the fourth quarter of 2021.

With the acquisition of Indigo, the Spring-based company will expand into the Haynesville and Bossier shale area in northwestern Louisiana. Indigo, which is based in Houston, provides proximity to growing demand in liquid natural gas on the Gulf Coast. Southwestern Energy currently has a natural gas, oil and liquid natural gas footprint in the Marcellus shale of Pennsylvania, Ohio and West Virginia.

"Our footprint now extends across the two premier natural gas basins in the country and includes top-tier dry gas and liquids rich inventory," Southwestern Energy President and CEO Bill Way said in the release. "The value of this high-quality inventory is further enhanced by our diverse transportation portfolio providing access to premium markets in the Gulf Coast and within Appalachia."

The $2.7 billion transaction is made up of $400 million in cash and 339 million shares of Southwestern Energy stock totaling $1.6 billion. The rest will be from assumed senior notes due 2029. The sale was unanimously approved by both companies' boards of directors and will need regulatory approval.