Shares of Southwestern Energy (SWN -1.63%) slumped about 9% by 10 a.m. ET on Monday. Weighing on the natural gas stock was a big block trade by large shareholders.
Southwestern Energy announced the pricing of a large block trade today. Certain of its shareholders sold nearly 64 million shares of its stock, netting them $328.2 million in the sale. The company didn't receive any of the proceeds from this sale.
The natural gas producer had previously issued these shares to help fund its acquisition of Indigo Natural Resources -- a deal that closed in September. Overall, the company issued 339 million shares, valued at $1.6 billion at an average price of around $4.72 per share. With the stock recently above $5 per share before today's decline, they decided to cash in on some of the shares they received as part of that $2.7 billion transaction.
This sale likely won't be the last large one by major Southwestern Energy shareholders. The former owners of Indigo Natural Resources only sold a portion of the stock they received in the deal via today's block sale. Meanwhile, Southwestern Energy recently agreed to purchase GEP Haynesville for $1.85 billion. It expects to issue another 99 million shares worth about $525 million to close that deal. Those future shareholders could also sell off their shares if the stock rallies above $5.29 per share, the average price of the stock they received. These future sales could put additional pressure on Southwestern Energy's stock in the coming months.