S&P: Southwestern Energy unaffected

Standard & Poor's said its ratings and outlook on Southwestern Energy Co. (BB+/stable) are unaffected by its sale of natural gas utility Arkansas Western Gas Co. to SourceGas LLC for $224 million plus working capital.

According to S&P, although the gas utility is a source of stable cash flow for Southwestern, earnings and cash flow contributions have been dwarfed in recent years by Southwestern's exploration and production business, which limits the impact of the sale on credit quality.

Proceeds from the sale are expected to repay debt on its credit facility or to help fund capital spending.

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