QUOTE AND NEWS
Benzinga  Oct 17  Comment 
In a report published Friday, Morgan Stanley analyst Drew Venker reiterated an Underweight rating on Southwestern Energy Company (NYSE: SWN), but lowered the price target from $26.00 to $24.00. In the report, Morgan Stanley noted, “SWN...
SeekingAlpha  Oct 17  Comment 
By IAEResearch: Chesapeake Energy (NYSE:CHK) announced the sale of assets in the southern Marcellus and Utica Shale. The company has been on a strict capital plan and it has been selling some of its assets to get a better mix of production. The...
StreetInsider.com  Oct 16  Comment 
* Chesapeake Energy (NYSE: CHK) has executed a Purchase and Sale Agreement to sell assets in the Southern Marcellus Shale and a portion of the Eastern Utica Shale in West Virginia to Southwestern Energy Company (NYSE: SWN) (“Southwestern”)...
OilVoice  Oct 16  Comment 
Southwestern Energy Company NYSE SWN today announced that it has signed a purchase and sale agreement with Chesapeake Energy Corporation NYSE CHK to acquire certain oil and gas assets covering a
Market Intelligence Center  Oct 16  Comment 
With bearish technical indicators and a 3 STARS (out of 5) hold ranking from Standard & Poor’s, Southwestern Energy Co (SWN) could be an attractive play for investors according to MarketIntelligenceCenter.com's patented option-trade picking...
Forbes  Oct 15  Comment 
ooking at the sectors faring best as of midday Wednesday, shares of Energy companies are outperforming other sectors, losing just 1.3%. Within the sector, Southwestern Energy (NYSE: SWN) and Cabot Oil & Gas  (NYSE: COG) are two large stocks...
Forbes  Oct 15  Comment 
In early trading on Wednesday, shares of Southwestern Energy (SWN) topped the list of the day's best performing components of the S&P 500 index, trading up 3.4%.  Year to date, Southwestern Energy has lost about 13.0% of its value.
SeekingAlpha  Oct 10  Comment 
By Casey Hoerth: The decline in oil and gas stocks continues, with little sign of relief in sight. But while Brent Crude is indeed down substantially, Henry Hub, which is the NYMEX price for natural gas, remains buoyant. Over the last few articles...
Market Intelligence Center  Oct 9  Comment 
MarketIntelligenceCenter.com's patented algorithms have selected a trade on Southwestern Energy Co (SWN) that returns 3.86% in 72 days for an annualized return rate of 20%. This diagonal spread pairs a short position in the Dec. '14 $34.00 call,...
Market Intelligence Center  Oct 8  Comment 
For a hedged play on Southwestern Energy Co (SWN) MarketIntelligenceCenter.com’s patented trade-picking algorithms recommend the Dec. '14 $34.00 covered call for a net debit in the $32.49 area. That is also the break-even stock price for the...




 

Southwestern Energy Company is an energy company focused on exploring and producing natural gas in the southwestern region of the United States.[1] It generates revenue through Midstream services that market its own produced gas and gathers fees associated with the transportation of natural gas to market. [1]

Company Overview

Southwestern Energy Company is an integrated energy company located in Houston, Texas and it has natural gas and crude oil exploration and production sites in Arkansas, Oklahoma, Texas, New Mexico, and Louisiana. [1] Southwestern Energy Production Company and SEECO, Inc., Southwestern Energy Company's wholly-owned subsidiaries, conduct most of SWN's exploration and production activities. [1] Conventional drilling occurs in the Arkansas part of the Arkoma Basin, and development drilling and exploration occurs in the Oklahoma part of the Akroma Basin. [2]

Business and Financial Metrics[3]

In 2009, SWN incurred a net loss of $35.8 million on revenues of $2.15 billion. This represents a turnaround from 2008, when the copany earned $568.5 million on $2.31 billion in revenues.

Business Segments[3]

Southwestern Energy Company was broken up into three segments: Exploration and Production, Midstream, and Distribution. [1]

Exploration and Production (74.2% of total revenue): Its exploration and production segment includes SEECO, Inc., Southwestern Energy Production Company, or SEPCO, and DeSoto Drilling Company, which are all wholly owned subsidiaries of southwestern Energy Company. [4] All drilling is done in the United States, with drilling being done in the Arkoma Basin, East Texas, the Permian Basin and the onshore Gulf Coast.[4]

Midstream Services (74.7% of total revenue): The Midstream services segment creates revenue by natural gas transportation fees and by marketing its own gas production and occasionally some third party gas natural gas as well.[4] DeSoto Gathering company, a subsidiary of Southwestern Energy Company, engages in gas gathering activities dealing mainly with the Fayetteville Shale play.[4] Southwestern Energy Services Company(SES), Southwestern Energy Company's gas marketing subsidiary, captures downstream opportunities that come up due to marketing and transportation activity.[4].

Trends & Forces

Governmental Regulations Could Lead to Higher Costs of Operation

Since Southwestern Energy Company needs to drill underground for gas, it must abide by the Government's regulations.[5] It costs Southwestern Energy Company to comply with the regulations, and if the regulations change, the costs of abiding by them increase. [5] Also, since Southwestern Energy Company is the owner and operator of natural gas and oil properties, and an owner of gas gathering and transmission systems, they have to follow several federal, state, and local regulations relating to the discharge of materials and protection of the environment. [5] Such regulations could make Southwestern Energy Company liable for the cost of pollution clean-up, and could even result in cessation of operation in polluted areas, which could lead to increased costs of operation. [5] The government also has abandonment regulations, which Southwestern Energy Company could incur in the future. [5]

Competition

The natural gas and oil market is very competitive, and there is plenty of competition for reserve acquisitions, exploration leases, licenses, concessions, marketing agreements, equipment and labor. SWN's competitors include:

Footnotes

  1. 1.0 1.1 1.2 1.3 1.4 Southwestern Energy Company "about SWN"
  2. Yahoo! Finance
  3. 3.0 3.1 SWN 2009 10-K pg. 42  
  4. 4.0 4.1 4.2 4.3 4.4 2007 10K Item 1 page 3
  5. 5.0 5.1 5.2 5.3 5.4 2007 10k item1A page 27

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