Southwestern Energy Company Company Profile (NYSE:SWN)

Southwestern Energy Company trades on the New York Stock Exchange (NYSE) under the ticker symbol "SWN."

Southwestern Energy Company (NYSE:SWN) released its quarterly earnings data on Thursday, August, 3rd. The company reported $0.08 EPS for the quarter, missing the Thomson Reuters' consensus estimate of $0.16 by $0.08. The company earned $811 million during the quarter, compared to analysts' expectations of $810 million. Southwestern Energy Company had a positive return on equity of 25.19% and a negative net margin of 9.46%. The firm's quarterly revenue was up 55.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.09) EPS. View Southwestern Energy Company's Earnings History.

Southwestern Energy Company is scheduled to release their next quarterly earnings announcement on Thursday, October, 19th 2017. View Earnings Estimates for Southwestern Energy Company.

23 analysts have issued 1-year target prices for Southwestern Energy Company's stock. Their predictions range from $6.00 to $47.00. On average, they anticipate Southwestern Energy Company's stock price to reach $12.42 in the next year. View Analyst Ratings for Southwestern Energy Company.

Here are some recent quotes from research analysts about Southwestern Energy Company stock:

• 1. According to Zacks Investment Research, "Since natural gas accounts for almost all of the  Southwestern Energy’s reserves and production, its results are vulnerable to negative near-term outlook for the commodity. Moreover, an oversupplied U.S. natural gas market with low demand provides little space for the company to flourish. The company is facing pressure on top line. Over the past three years (2014–2016), total revenues declined at a CAGR of 22.3%. Continued pressure on oil and gas prices are the primarily reasons for decrease in revenues. We are also concerned with the company’s high debt load. At the end of the first quarter, the company’s debt balance stood at $4.4 billion compared with cash balance of $659.1 million in the balance sheet. In fact, the company’s debt-to-equity ratio is 341.5%, higher than the broader industry average of 99.4%." (7/27/2017)
• 2. National Securities analysts commented, "What Happened:
  • In the 1st quarter of 2017, Southwestern produced at a rate of 2.3 billion cubic feet equivalent per day (Bcfe/d), while maintaining its 90% natural gas weighting. We note that this represents a 3% sequential increase on the quarter, while meeting our own production estimates as well.
  • As it relates to pricing, SWN realized natural gas prices of $2.57 per Mcf on the quarter (post hedges), 24% higher than the prior quarter, while exceeding our projection of $2.07 per Mcf by the same amount. Looking forward, we estimate a narrowing to $2.31 per Mcf for the upcoming quarter, when incorporating current strip prices, and differentials to NYMEX gas prices.
  • SWN announced a significant uptick in reserves in the quarter, growing to 10 trillion cubic feet equivalent (Tcfe) from 5.3, along with an increase in PV-10 value to $3 billion (from $1.6 billion)
  • Looking forward, we model an 8% increase in production to 2.5 Bcfe per day, though we expect a contraction in revenues, driven by our expectations for lower prices in 2Q17. For all of 2017 however, we project that Southwestern’s revenue will expand 35% largely driven by higher production volumes.
  Our Take:
  • The unexpected announcement of a near doubling of Southwestern’s reserve base (following a 15% reduction to close 2016), positions the company well for the remainder of 2017. While we note that the reserve number is unaudited (and thus discounted in our own valuation), we do not doubt the validity of the figures, nor the decision to announce the figure early. Investors should note that traditionally, revisions in reserves (whether up or down), are generally reserved for the end of the year. However, given the large increase, it seems prudent that SWN would announce now, rather than wait until 2017 has concluded.
  • To that end, an audit of a company’s reserves will generally use the first day’s pricing, of the prior 12 months to estimate both reserve quantities, as well as PV-10 (often times used as a proxy for discounted projected cash flows). That methodology in this instance is overly conservative for SWN in our view.
  • By that we mean that given the trajectory of natural gas prices during 2016, SWN received a downward revision in reserves that doesn’t accurately reflect the company’s forward looking prospects, in our view. Specifically, we note that the average natural gas price for 2016 was $2.62 per Mcf (2% lower than 2015). However, we contend that the full year average was held down in large measure by the $2.16 per Mcf averaged in the first half of the year. By contrast, natural gas prices were much stronger in the 2nd half of 2016, averaging $3.06 per Mcf between July and December. Additionally, as we look to the forward strip, we highlight average prices of $3.37 per Mcf for the remainder of the year. And while we acknowledge that the strip itself is not to be used as a prognosticator of future settlement prices, we expect that SWN will use the futures strip as a mechanism to lock in higher natural gas prices via its hedge book. As it stands we note that SWN has 50% of its remaining production hedged above current strip prices, and fully expect the company to be opportunistic for 2018 and 2019 production as well.
  • We arrive at our price target using a blended average of Southwestern’s daily production, proved reserves, and projected EBITDA. In doing so, we arrive at our $14 target. Additionally, our model adds $1.35 for a working capital surplus, while deducting $6.59 per share for net debt. Given the implied upside to our target, we reiterate our BUY rating.
  " (5/1/2017)
• 3. KLR Group analysts commented, "We are increasing our SWN target price $2 to $15 per share due to an incremental 10% capital allocation to Appalachia, which corresponds to an approximate 10% improvement in overall capital intensity. Our '17 production outlook of ~899 Bcfe is slightly below the midpoint of company guidance (890-910 Bcfe)." (2/27/2017)

Southwestern Energy Company saw a decrease in short interest during the month of August. As of August 31st, there was short interest totalling 42,310,536 shares, a decrease of 7.8% from the August 15th total of 45,891,760 shares. Based on an average daily volume of 13,081,166 shares, the days-to-cover ratio is currently 3.2 days. Currently, 8.4% of the shares of the stock are short sold.

Some companies that are related to Southwestern Energy Company include Newfield Exploration Company (NFX), Energen Corporation (EGN), RSP Permian (RSPP), Range Resources Corporation (RRC), Vermilion Energy (VET), Murphy Oil Corporation (MUR), WPX Energy (WPX), Chesapeake Energy Corporation (CHK), Texas Pacific Land Trust (TPL), Laredo Petroleum (LPI), PDC Energy (PDCE), Kosmos Energy (KOS), Transportadora De Gas Sa Ord B (TGS), Matador Resources Company (MTDR), Gulfport Energy Corporation (GPOR), Enerplus Corporation (ERF), Magellan Petroleum Corporation (TELL) and Callon Petroleum Company (CPE).

Southwestern Energy Company's management team includes the folowing people:

• Catherine A. Kehr, Independent Chairman of the Board
• William J. Way, President, Chief Executive Officer, Director
• Mark K. Boling, Executive Vice President, President - V+ Development Solutions
• John C. Ale, Senior Vice President, General Counsel, Corporate Secretary
• John E. Bergeron Jr., Senior Vice President – E&P Operations
• Randall L. Curry, Senior Vice President – Midstream
• Paul W. Geiger III, Senior Vice President – Corporate Development
• Jennifer N. Mccauley, Senior Vice President – Administration
• James W. Vick, Senior Vice President – Business Information Systems
• C. Greg Stoute, Vice President – Health, Safety, Environmental and Regulatory

Southwestern Energy Company's stock is owned by a number of of retail and institutional investors. Top institutional shareholders include Vanguard Group Inc. (9.31%), Capital Research Global Investors (6.49%), FMR LLC (4.29%), State Street Corp (4.16%), Capital World Investors (1.80%) and Sterling Capital Management LLC (1.69%). Company insiders that own Southwestern Energy Company stock include Gregory D Kerley, Jennifer N Mccauley and Robert Craig Owen. View Institutional Ownership Trends for Southwestern Energy Company.

Southwestern Energy Company's stock was sold by a variety of institutional investors in the last quarter, including Capital Research Global Investors, Vanguard Group Inc., State Street Corp, Dimensional Fund Advisors LP, Key Group Holdings Cayman LTD., FMR LLC, Capital Fund Management S.A. and JPMorgan Chase & Co.. Company insiders that have sold Southwestern Energy Company stock in the last year include Gregory D Kerley, Jennifer N Mccauley and Robert Craig Owen. View Insider Buying and Selling for Southwestern Energy Company.

Southwestern Energy Company's stock was bought by a variety of institutional investors in the last quarter, including Bridgewater Associates LP, Sterling Capital Management LLC, State of New Jersey Common Pension Fund D, Marshall Wace North America L.P., Disciplined Growth Investors Inc. MN, AJO LP, Ontario Teachers Pension Plan Board and Principal Financial Group Inc.. View Insider Buying and Selling for Southwestern Energy Company.

Shares of Southwestern Energy Company can be purchased through any online brokerage account. Popular online brokerages include Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Scottrade, Fidelity and Charles Schwab.

One share of Southwestern Energy Company stock can currently be purchased for approximately $6.03.