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Southwestern Energy Company First Quarter 2023 Results

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   |    Monday,May 01,2023

Southwestern Energy Company announced first quarter 2023 results.


  • Generated $1.1 billion net cash provided by operating activities, $1.9 billion net income and $346 million adjusted net income (non-GAAP)
    - Adjusted EBITDA (non-GAAP) of $799 million and free cash flow (non-GAAP) of $99 million
  • Reported total net production of 411 Bcfe, or 4.6 Bcfe per day, including 3.9 Bcf per day of gas and 107 MBbls per day of liquids
  • Invested $665 million of capital and placed 36 wells to sales, including 13 in Appalachia and 23 in Haynesville
Southwestern Energy announced financial and operating results for the first quarter ended March 31, 2023.
Bill Way, Southwestern Energy President and Chief Executive Officer said: "Southwestern Energy demonstrated during the quarter the quality of our dual-basin scale, portfolio optionality and differentiated access to premium markets, delivering strong operational performance and generating free cash flow for debt reduction."

"Guided by our disciplined capital allocation strategy, we are moderating planned annual activity, including delaying certain dry gas-focused completions. Our operating flexibility, continued capital efficiency improvements and progress driving lower than expected inflation enable us to align capital investment with expected cash flow while maintaining our productive capacity to capitalize on the constructive longer-term natural gas outlook. Southwestern Energy continues to execute our strategy to deliver shareholder value by meeting growing global demand for lower-carbon, reliable energy," continued Way.

Financial Results


For the three months ended


March 31,

(in millions)




Net income (loss)







Adjusted net income (non-GAAP)







Diluted earnings (loss) per share







Adjusted diluted earnings per share (non-GAAP)







Adjusted EBITDA (non-GAAP)







Net cash provided by operating activities







Net cash flow (non-GAAP)







Total capital investments (1)







Free cash flow (non-GAAP)









Capital investments includes a decrease of $6 million and an increase of $43 million for the three months ended March 31, 2023 and 2022, respectively, relating to the change in accrued expenditures between periods.

For the quarter ended March 31, 2023, Southwestern Energy recorded net income of $1.9 billion, or $1.76 per diluted share, including a gain on mark-to-market of unsettled derivatives. Excluding this and other one-time items, adjusted net income (non-GAAP) was $346 million, or $0.31 per diluted share, and Adjusted EBITDA (non-GAAP) was $799 million. Net cash provided by operating activities was $1.1 billion, net cash flow (non-GAAP) was $764 million and free cash flow (non-GAAP) was $99 million.

During the quarter, the Company fully redeemed its outstanding 7.75% Senior Notes due 2027 utilizing cash on hand and borrowings under its revolving credit facility. As of March 31, 2023, Southwestern Energy had total debt of $3.95 billion and net debt to adjusted EBITDA (non-GAAP) of 1.2x. At the end of the quarter, the Company had $210 million of borrowings under its revolving credit facility and $89 million in outstanding letters of credit.

The Company is currently rated one notch below an investment grade credit rating by all three credit agencies. In January 2023, S&P updated Southwestern Energy to positive outlook, joining Fitch, which updated the Company to positive outlook in August 2022.

As indicated in the table below, first quarter 2023 weighted average realized price was $3.48 per Mcfe, excluding the impact of derivatives and net of $0.27 per Mcfe of transportation expenses. Including derivatives, weighted average realized price for the first quarter was down 2% from $3.24 per Mcfe in 2022 to $3.18 per Mcfe in 2023 primarily due to lower commodity prices including a 31% decrease in NYMEX Henry Hub and a 19% decrease in WTI.

Operational Results

Total net production for the quarter ended March 31, 2023 was 411 Bcfe, of which 86% was natural gas, 12% NGLs and 2% oil. Capital investments totaled $665 million for the first quarter of 2023, consistent with the Company's front-end loaded capital program, with 31 wells drilled, 36 wells completed and 36 wells placed to sales.

Appalachia - In the first quarter, total production was 251 Bcfe, with NGL production of 91 MBbls per day and oil production of 16 MBbls per day. The Company drilled 19 wells, completed 15 wells and placed 13 wells to sales with an average lateral length of 14,916 feet.

Haynesville - In the first quarter, total production was 160 Bcfe. There were 12 wells drilled, 21 wells completed and 23 wells placed to sales in the quarter with an average lateral length of 8,207 feet.

Second Quarter 2023 Guidance Update

Based on current market conditions, Southwestern expects second quarter production and price differentials to be within the following ranges.


For the quarter ended June 30, 2023

Gas production (Bcf)

355 - 365

Liquids (% of production)


Total (Bcfe)

408 - 420




Natural gas discount to NYMEX including transportation (1)

$0.60 - $0.72 per Mcf

Oil discount to West Texas Intermediate (WTI) including transportation

$10.00 - $12.00 per Bbl

Natural gas liquids realization as a % of WTI including transportation

24% - 32%



Includes an estimated $0.05 to $0.06 per Mcf loss on basis hedges.

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