Southwestern Energy Co. sold its two compressed natural gas fueling stations in Arkansas to American Natural Gas, both companies announced Monday.
Southwestern Energy declined to reveal the sale price for the stations in Damascus and Conway or why the company sold them. The deal closed Monday.
"We are pleased to welcome [American Natural Gas] as a new investor in our community, and look forward to working with them as both Central Arkansas stations will continue to supply CNG to Southwestern Energy's fleet in support of our extensive operations in the Fayetteville Shale," George Sheffer, Southwestern Energy's vice president of operations-Fayetteville Shale, said in a statement.
Southwestern Energy opened the natural gas station in Damascus in 2011 and the Conway station in 2013.
Julia Ingersoll, spokesman for American Natural Gas, said that when the company takes ownership, the fueling stations will continue to operate as they do now.
The sale of the natural gas stations comes as Southwestern Energy has scaled back its operations in the Fayetteville Shale amid low natural gas prices. In January, the company said it would lay off about 600 employees in the state.
Nationwide, energy companies have been grappling with low commodity prices for almost two years, but natural gas prices have particularly hit producers in the Fayetteville Shale.
Also leading to the decline in activity in the Fayetteville Shale is the rise of exploration and drilling in other shale formations, such as the Eagle Ford Shale in Texas and the Marcellus in the Northeast.
Those plays are rich with oil and natural gas liquids -- such as ethane and butane -- that are more profitable than the dry gas found in the Fayetteville Shale.
Drilling activities have significantly declined in the Fayetteville Shale since peaking in 2008, and currently none of the main operators in the formation have active drilling rigs in the area.
Ingersoll said American Natural Gas is hopeful that price stability at the stations will help maintain a market for natural gas in Arkansas.
"It's the reality of what's happening," she said about the drop in market prices. "I think as gasoline prices continue to fluctuate, CNG remains consistent."
Business on 05/17/2016