Indigo Natural Resources Acquisition, Valuation, Funding & Investors

Indigo Natural Resources was acquired by Southwestern Energy for $2.7B in June 2021.

Indigo Natural Resources acquisition price

$2.7B

Acquired by Southwestern Energy · Jun 2021

Cumulative funding Indigo Natural Resources raised

$375M

across 1 funding round

Key investors in Indigo Natural Resources

  • Ridgemont Equity Partners
  • Trilantic North America
  • Martin Companies
  • Yorktown Partners

Indigo Natural Resources Overview

About Indigo Natural Resources

Indigo Natural Resources is a Houston-based energy firm formed in 2006 focusing on mineral rights and operated oil and gas production. The company holds over 600,000 acres across 15 US states, with primary concentrations in Louisiana, Alabama, and Mississippi yielding output from more than 600 wells. Backed by Yorktown Partners, it aggregates non-operated interests and develops working interests.


Founded

2006

HQ

United StatesHouston, TX

Status

Acquired

Customer focus

B2B

Revenue model

Product sales

Valuation

$2.7B (acquired Jun 2021)

Sectors

Indigo Natural Resources Acquisition

Indigo Natural Resources was acquired by Southwestern Energy for $2.7B on 2 June 2021.

Before the acquisition Indigo Natural Resources had raised $375M across 1 funding round.

Southwestern Energy Company (NYSE: SWN), a premier US natural gas exploration and production company, agreed to acquire Indigo Natural Resources, a Haynesville-focused natural gas producer, in a transaction announced in June 2021 and completed on September 1, 2021. The acquisition was valued at approximately $2.7 billion in enterprise value, funded through $400 million in cash, approximately $1.6 billion in Southwestern Energy common stock (339 million shares at $4.72 per share based on the 30-day VWAP as of May 28, 2021), and $700 million of assumed 5.375% senior notes due 2029. Indigo Natural Resources was acquired from Yorktown Partners, an asset management firm. The strategic rationale centered on expanding Southwestern's natural gas production scale and enhancing operational efficiency. Indigo's high-quality acreage position in the core of the Haynesville play, low-cost structure, and strong balance sheet were viewed as complementary to Southwestern's vertically integrated business model and large-scale natural gas development capabilities. The combined company expected approximately $20 million in annual G&A synergies, with additional operational and financial cost savings anticipated from leveraging Southwestern's reservoir optimization, innovation, and data analytics capabilities. Southwestern Energy projected material benefits from the acquisition, including increased cumulative free cash flow of approximately $1.2 billion from 2021 to 2023, a ~30% improvement in estimated 2022 free cash flow per share, acceleration of its leverage reduction target below 2.0x in 2021 and progressing to 1.7x in 2022, expanded global market access through the LNG corridor, and potential credit upgrades. The deal also extended Southwestern's asset maturity profile and strengthened its portfolio diversification within the natural gas sector.

Indigo Natural Resources acquisition details
AcquirerDateTypePrice
  • Southwestern Energy
2 Jun 2021Strategic M&A$2.7B

Indigo Natural Resources Funding History

Indigo Natural Resources has raised a total of $375M across 1 funding round.

Indigo Natural Resources funding rounds

Indigo Natural Resources funding rounds
DateStageInvestorsRaisedDeal Summary
Apr 2016Undisclosed stageTrilantic North America (lead); Martin Companies; Ridgemont Equity Partners; Yorktown Partners$375MIndigo Natural Resources (then referred to as Indigo Minerals LLC) completed a $375 million equity capital raise on April 28, 2016, led by Trilantic North America with a $300 million investment, alongside existing investors Martin Companies, Yorktown Partners, and Ridgemont Equity Partners contributing $75 million. The proceeds funded the acquisition of producing properties and undeveloped acreage in the Cotton Valley and Haynesville plays in Northwest Louisiana and East Texas. Pro forma for the acquisition, Indigo held approximately 160,000 net acres in these regions plus minerals and leasehold interests across 15 states, positioning it as the tenth largest private natural gas producer in the US with year-end SEC proved reserves of 1.27 Tcf. The investment supported growth from around 140,000 net acres and 140 mmcfe/d production to over 300,000 net acres and more than 1,000 mmcfe/d post-investment. Trilantic North America's capital was used for the Haynesville Shale upstream assets acquisition, debt repayment, and a development drilling program. Indigo focused on developing the Haynesville Shale, Bossier Shale, and Holly Vaughn formation as one of the largest natural gas producers in North Louisiana. Later developments included strategic transactions like a midstream joint-venture with M5 Midstream, additional upstream acquisitions, and Indigo's inaugural high-yield offering. In 2021, Southwestern Energy agreed to acquire Indigo, which by then produced about 1.0 Bcf per day net (expected to reach 1.1 Bcf upon closing), with $631 million net debt and a 1.1x leverage ratio as of March 31, 2021, adjusted for non-core asset sales.

Who has invested in Indigo Natural Resources?

4 investors have backed Indigo Natural Resources across its funding rounds, including Ridgemont Equity Partners, Trilantic North America, Martin Companies and Yorktown Partners.

Lead investors include Trilantic North America.


Indigo Natural Resources Investors

Investors in Indigo Natural Resources by funding rounds participated
InvestorHQRoundsRoleFirst check
Trilantic North AmericaUnited StatesNew York City, NY1LeadApr 2016
Martin CompaniesUnited StatesTyler, TX1ParticipantApr 2016

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Indigo Natural Resources Competitors

Indigo Natural Resources competitors include listed companies like Odfjell Drilling, Northern Oil & Gas, Select Water and Cosan, and private ones like Yantai Wanhua Petrochemical and Yinson Production.

Public and private companies comparable to Indigo Natural Resources
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
Odfjell DrillingNorwayNorwayPublicly listed$514M$424M$2.7B3.6x
Northern Oil & GasUnited StatesUnited StatesPublicly listed$2.1B$1B$2.7B2.3x
Select WaterUnited StatesUnited StatesPublicly listed$1.4B$218M$2.6B2.0x
CosanBrazilBrazilPublicly listed$7.9B$78M$2.8B1.2x
Yantai Wanhua PetrochemicalChinaChinaPrivate--$2.6B-
Yinson ProductionSingaporeSingaporePrivate$606M-$3.7B6.1x

Indigo Natural Resources Public Comps

Indigo Natural Resources is no longer listed, but its public comps include Odfjell Drilling, Northern Oil & Gas, Select Water, Cosan, Gulfport Energy, CES Energy Solutions, Talos Energy, International Petroleum Corp, Dorian LPG and BKV Corporation.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Odfjell Drilling$514M$424M7.1x3.6x8.6x6.8x
Northern Oil & Gas$2.1B$1B2.6x2.3x5.1x3.4x
Select Water$1.4B$218M2.1x2.0x13.7x9.2x
Cosan$7.9B$78M2.0x1.2x205.9x4.5x
Gulfport Energy$1.3B$896M2.9x2.5x4.2x4.1x
CES Energy Solutions$1.8B$283M1.8x1.6x11.4x9.7x
Talos Energy$1.8B$740M2.0x1.7x4.8x2.6x
International Petroleum Corp$772M$215M4.4x4.2x15.7x11.7x

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Common questions about Indigo Natural Resources

When was Indigo Natural Resources founded?Indigo Natural Resources was founded in 2006.
Where is Indigo Natural Resources headquartered?Indigo Natural Resources is headquartered in Houston, TX, United States.
Is Indigo Natural Resources publicly listed?No, Indigo Natural Resources was acquired by Southwestern Energy in June 2021.
Who acquired Indigo Natural Resources?Indigo Natural Resources was acquired by Southwestern Energy in June 2021.
How much was Indigo Natural Resources acquired for?Indigo Natural Resources was acquired for $2.7B in June 2021.
How much funding has Indigo Natural Resources raised?Indigo Natural Resources has raised $375M across 1 funding round.
What was Indigo Natural Resources' last funding round?Indigo Natural Resources' last funding round was a $375M undisclosed-stage round in April 2016, led by Trilantic North America.
Who are Indigo Natural Resources' investors?Indigo Natural Resources' investors include Trilantic North America, Martin Companies, Ridgemont Equity Partners and Yorktown Partners.
Which companies are comparable to Indigo Natural Resources?Companies comparable to Indigo Natural Resources include Odfjell Drilling, Northern Oil & Gas, Select Water, Cosan, Yantai Wanhua Petrochemical and Yinson Production.

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