HOUSTON, March 19, 2015 /PRNewswire/ -- Southwestern Energy Company (NYSE: SWN) announced today that it has executed a definitive purchase and sale agreement with Howard Midstream Energy Partners, LLC to sell Southwestern Energy's gathering assets located in Bradford and Lycoming counties in northeastern Pennsylvania for $500 million. The assets include approximately 100 miles of natural gas gathering pipeline, with nearly 600 million cubic feet per day of capacity. The proceeds from the transaction will be used to substantially repay borrowings under Southwestern Energy's $500 million term loan facility that matures in December 2016. The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2015.
"We are excited to have this deal in place as it represents a major step toward completing our acquisition financing plan that we previously announced," remarked Steve Mueller, Chairman and Chief Executive Officer of Southwestern Energy. "With this deal, we are well on our way to achieving the $600 million to $800 million in divestiture proceeds announced as part of that plan."
Southwestern Energy Company is an independent energy company whose wholly-owned subsidiaries are engaged in natural gas and oil exploration, development and production, natural gas gathering and marketing. Additional information on the company can be found on the Internet at http://www.swn.com.
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SOURCE Southwestern Energy Company