SOUTHWESTERN ENERGY COMPANY (NYSE:SWN) Files An 8-K Regulation FD DisclosureItem 7.01.
On May 18, 2017, Southwestern Energy Company and certain of its subsidiaries (collectively, the “Company”) entered into an agreement to settle class action litigation filed on behalf of lessors under leases of oil and gas in Arkansas regarding the amount of deductions a Company subsidiary has made for gathering, treatment and other costs in calculating royalty payments to the lessors. The agreement was reached in connection with the case pending in the Circuit Court of Conway County, Arkansas (the “Arkansas Court”) under the caption Snow et al. v. SEECO, Inc., No. CV-2010-126.
Under the terms of the settlement agreement, the Company will pay $30 million upon final court approval of the settlement. The Company’s production subsidiary also agrees, for a period of 20 years, to calculate deductions for gathering costs incurred with an affiliate at no more than the rate charged by the affiliate minus 4.3 cents per thousand cubic feet of gas. The Company and its affiliates will be released from claims relating to all past royalty calculations for affected leases, including deductions for gathering, treatment and other costs, such as gathering charges incurred with an affiliate. The settlement also validates future deductions calculated in accordance with the terms of the settlement. The class for the settlement includes substantially all persons having leases with the Company in Arkansas that permit deductions for various costs. The agreement contains no admission of wrongdoing, which the Company continues to deny.
The proposed settlement has received preliminary approval from the Arkansas Court and is subject to its final approval. The hearing for final approval is scheduled for June 28, 2017. In addition, the Company has the right to terminate the settlement agreement if more than a specified portion of class members elect to opt out of the settlement or if certain other events occur.
The information in this Item 7.01 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of Section 18, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as set forth by specific reference in such filing.
About SOUTHWESTERN ENERGY COMPANY (NYSE:SWN)
Southwestern Energy Company is an independent energy company engaged in natural gas and oil exploration, development and production. The Company operates through two segments: Exploration and Production (E&P) and Midstream Services. Its operations are focused on the development of unconventional natural gas reservoirs located in Pennsylvania, West Virginia and Arkansas. Its operations in northeast Pennsylvania are focused on the unconventional natural gas reservoir known as the Marcellus Shale. Its operations in West Virginia are also focused on the Utica and the Upper Devonian unconventional natural gas and oil reservoirs (Southwest Appalachia). Its operations in Arkansas are primarily focused on an unconventional natural gas reservoir known as the Fayetteville Shale. It has exploration and production activities in Colorado and Louisiana along with other areas. Through its affiliated midstream subsidiaries, it is engaged in natural gas gathering activities in Arkansas and Louisiana. SOUTHWESTERN ENERGY COMPANY (NYSE:SWN) Recent Trading Information
SOUTHWESTERN ENERGY COMPANY (NYSE:SWN) closed its last trading session up +0.27 at 7.11 with 20,608,236 shares trading hands.