Southwestern Energy Company SWN recently announced the completion of the acquisition of Indigo Natural Resources. Due to inclusion of the acquiree’s premier high-margin Haynesville assets, Southwestern provided an updated guidance for 2021.In early June, Southwestern announced the deal worth around $2.7 billion including $400 million in cash. The company boasts a diversified reserve base in multiple U.S. basins and remains focused on investments in high-return areas such as Appalachia. The acquisition of Indigo further expanded its reach in the Haynesville and Bossier shale plays of northern Louisiana. Indigo’s low-cost production structure is likely to boost Southwestern’s profitability. Also, it has access to Indigo Natural’s premium Gulf Coast export market. The move is likely to enable the company to ramp up net output capacity to 4.1 billion cubic feet of natural gas equivalent per day (Bcfe/d).Updated GuidanceWith the closing of the acquisition, Southwestern boosted its production guidance for 2021 to 1,217-1,235 Bcfe, of which 18% will likely be liquids. The guided range indicates a massive jump from the 2020 level of 880 Bcfe. For the third and fourth quarters, production is expected within 302-310 Bcfe and 370-380 Bcfe, respectively.The company also expects to ramp up 2021 capital investment to $1,085-$1,145 million for including the acquired assets. Last year, total capital investments amounted to $899 million. Lease operating expenses for 2021 is expected within 91-95 cents per thousand cubic feet of natural gas equivalent (Mcfe). In 2020, the figure was recorded at 93 cents per Mcfe.Free cash flow (FCF) for 2021 is now expected within $425-$475 million, marking a massive jump from the guidance provided last year. The company has adopted a sensible path to utilize the increased cash flow to reduce the debt burden. As of Jun 30, 2021, its cash and cash equivalents were only $2 million, while long-term debt was $2,814 million.Price PerformanceSouthwestern stock has jumped 85.7% in the past year compared with 84.7% rise of the industry it belongs to.Image Source: Zacks Investment ResearchZacks Rank & Stocks to ConsiderThe company currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space include Cimarex Energy Co. XEC, SM Energy Company SM and Comstock Resources, Inc. CRK, each having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Cimarex’s earnings for 2021 is pegged at $8.88 per share, indicating a massive improvement from the year-ago figure of $1.39.SM Energy’s bottom line for 2021 is expected to surge 173.9% year over year.The consensus estimate for Comstock Resources’ earnings for 2021 is pegged at $1.10 per share, signaling a major improvement from the year-ago figure of 23 cents. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Comstock Resources, Inc. (CRK): Get Free Report Southwestern Energy Company (SWN): Free Stock Analysis Report SM Energy Company (SM): Free Stock Analysis Report Cimarex Energy Co (XEC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research