Current SWN Stock Info

Southwestern announced yesterday the addition of 46,700 net acres to its expanding Marcellus play.

Southwestern Energy Company (ticker: SWN) released a statement yesterday saying that it has signed an agreement to purchase oil and gas assets, including approximately 46,700 net acres in northeast Pennsylvania, from WPX Energy, Inc. (ticker: WPX) for approximately $300 million.

The acreage is currently producing approximately 50 million net cubic feet of gas per day (MMcf/d) from 63 operated horizontal wells.

Also as part of the deal, SW...

Analyst Commentary

KLR Group: SWN ($30.99, H, $37) - Complementary Northeast Marcellus Acquisition- Southwestern announced the acquisition of ~46,700 net acres prospective in the Marcellus in Susquehanna County, PA and ~260 Mmcfpd of firm transport capacity for ~$300 million in cash. Current production from the properties is ~50 Mmcfepd and assuming a ~4x production rate multiple, the transaction equates to a reasonable ~$2,100 per acre net of production. The transaction is expected to close in 1Q/15. This announcement should have a negligible value impact.

Global Hunter Securities: Modest positive; not a surprise to see SWN moving to acquire WPX’s acreage adjacent to its Range Trust area in Northern Susquehanna Co. in light of recent results and bullish 3Q call commentary pointing to encouraging delineation tests stretching as far North as the NY border. We note nearby players include COG, CHK, TLM  


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