Southwestern Floats $1.1B in New IOUs to Buy Haynesville Driller

Southwestern Energy announced in early November it had struck a deal to buy GEP Haynesville, a subsidiary of GeoSouthern (see Southwestern Energy Buys 2nd Haynesville Driller for $1.85B). When the deal is done, GEP will add another 700 MMcf/d (million cubic feet per day) to Southwestern’s already hefty production. The new flows will boost Southwestern production to 4.7 Bcf/d (billion cubic feet per day)--within striking range of matching or maybe even surpassing EQT as the country’s largest gas producer. How will Southwestern pay for the purchase? Initially, by borrowing money. The company is offering $1.15 billion worth of IOUs (notes) to investors.

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