Leverage And Shareholder ReturnsThe debt incurred for the purchase increases leverage above the 0.5x threshold, reducing near-term shareholder returns from 75% to 50% of free cash flow.
Leverage ExpectationsThe transaction will be funded via cash on hand and borrowings under their revolver with net leverage expected to remain below 0.6x.
Liquidity And Asset DivestmentFollowing this latest bolt-on acquisition, there is greater potential for a liquidity event with the divestment of non-core Appalachia assets, which could nearly offset the acquisition.