Southwestern Energy Company signed a definitive $500 million purchase and sale agreement with San Antonio-based Howard Midstream Energy Partners for gas gathering assets in northeastern Pennsylvania.
The assets, located in Bradford and Lycoming counties, include 100 miles of natural gas gathering pipeline, with nearly 600 million cubic feet per day of capacity.
The proceeds from the sale will be used to “substantially repay borrowings under Southwestern Energy’s $500 million term loan facility that matures in December 2016,” Houston-based Southwestern Energy Company said.
The deal is subject to customary closing conditions and is expected to close in the second quarter of 2015.
“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 chairman and CEO Steve Mueller said.