- Southwestern Energy and Montage Resources are merging, with the deal expected to close next week.
- The combined company is now expected to generate significant free cash flow next year.
- The combined company is trading below where it was at the time of the announcement in August despite ongoing improvement in the natural gas macro (and in natural gas prices).
- The company trades at a substantial discount to its gassy peer group. Some of those names carry riskier balance sheets than the combined company.
For further details see:
Southwestern Montage Combination Creates Bargain Priced Gassy Player