Current SWN Stock Info

Southwestern Energy presented at EnerCom’s The Oil & Gas Conference®

During Southwestern’s breakout session, management was asked the following questions:

  • Given the substantial cuts to capex in the first quarter and large layoffs, how do you get started again and get cash flowing?
  • How much is left on your 2018 debt outstanding?
  • What would your 2017 production look like with the cash flows from today’s strip?
  • How will capital be allocated between Fayetteville and North and South Appalachia?
  • How many rigs will be allocated between North and South Appalachia and Fayetteville?
  • On a county basis in the panhandle of West Virginia, how do you think about that acreage position?
  • Do the rig additions in NE PA and Fayetteville, how much does that stem decline in those areas?
  • How do you feel about the negotiated contracts and pricing for rigs in Appalachia?
  • Is there any hesitation to reaccelerate rig counts this year from five to 16 given backwardation in the futures curve?
  • When Boardwalk rolls off, do you think there would be netback? Do you pay any incremental penalties?
  • What do you see as the Lower Marcellus sweet spots?
  • What is the update on marketing the exploration JV?
  • How much of your scattered Northeastern acreage doesn’t work below $3.50 given current technology and basis?
  • Can you comment on the deep Utica potential, even though that is not where you are going?
  • What were your completion trends in the past year?

You can listen to Southwestern’s presentation by clicking here.

For the company’s second quarter results, click here.

Southwestern Energy (ticker: SWN) is an independent company headquartered in Houston, TX involved in the exploration, production, and development of crude oil and natural gas. The company is also involved in natural gas gathering and marketing through its Midstream Services segment.

At year-end 2015, the company had 6,215 Bcfe of reserves, of which 47% were located in Appalachia and 53% were located in the Fayetteville. The company’s holdings include 1,653,074 net acres and 4,462 producing operated horizontal wells in the Northeast and Southwest Appalachian Basins and Fayetteville Shale.

In the second quarter, the company produced 225 Bcfe, of which 96 Bcf was produced in the Fayetteville, 90 Bcf in Northeast Appalachia, and 38 Bcf in Southwest Appalachia. Estimated production for 2016 is expected to be 865 to 875 Bcfe on the basis of improved production efficiencies and strong well performance in addition to production from a $375 million investment increase in the second half of the year.

Lease operating expenses per unit of production were $0.87 per Mcfe, a 6% decrease from the previous quarter. The company’s average realized gas price in the quarter, with derivative effects included, was $1.32 per Mcfe.

In the first half of 2016, the company invested $196 million, During the quarter, the company activated its plan to accelerate investment of an incremental $500 million into high return projects in the Company’s core asset areas in the second half of the year. In addition, the company entered a new credit agreement for $1.93 Billion, of which $1.19 million is on a fully drawn secured term loan and $743 million is on a new unsecured revolving credit facility.

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