Skip to main content Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. Investor Presentation | Shale Experts
Loading...
Pm

Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co.

Southwestern Energy Co. · Dec 22, 2013 · 35 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 1
    Presentation to Bank of America Merrill Lynch Global Energy Conference November 22, 2013 NYSE: SWN
  2. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 2
    Southwestern Energy Company General Information Southwestern Energy Company is an independent natural gas company whose wholly-owned subsidiaries are engaged in natural gas and oil exploration and production and natural gas gathering…
  3. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 3
    About Southwestern US Lower 48 Gas Production Sorted by 2Q13 (MMcf/d) 4,000 3,500 SWN is 5th overall as of 2Q13 3,000 2,500 2012: 4,018 Bcfe of Reserves Production 565 Bcfe 2,000 Reserve Life 7.1 Years 2Q13 2013: 70%+ of…
  4. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 4
    Third Quarter 2013 Highlights Third Quarter 2013 Highlights Production up 19%, due to strong Fayetteville and Marcellus results. Recorded highest quarterly adjusted EBITDA(1) and discretionary cash flow(1) in company history,…
  5. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 5
    Proven Track Record For the Periods Ended December 31 Average Realized Proved Adjusted EBITDA(1) Production (Bcfe) Gas Price (/Mcf) Reserves (Bcfe) (MM) F&D Cost (/Mcfe)(2) 565 7.52 6.80 1,775 2.70 500 6.55 5,893 1,612 1,638…
  6. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 6
    Areas of Operations Exploration & Production Segment PENNSYLVANIA 2012: 4,018 Bcfe of Reserves Production - 565.0 Bcfe 2013 Est. Production: 653-655 Bcfe ARKANSAS Marcellus Shale OKLAHOMA Reserves: 816 Bcf (20%) Production: 53.6…
  7. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 7
    Capital Investments 2,500 2,207 2,250 2,120 2,081 Corporate & Other 2,000 Midstream Services 1,796 1,809 Drilling Rigs ( Millions) 1,503 1,500 Property Acquisitions Cap. Expense & Other E&P 942 Leasehold & Seismic 1,000…
  8. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 8
    Marcellus Shale Millennium New York Stagecoach Pennsylvania Pennsylvania Bradford County 37 wells planned for 2013 Susquehanna County Range Trust 55 wells planned for 2013 West Greenzweig Virginia Price Lycoming…
  9. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 9
    Marcellus Gross Production by County 350,000 30th Day Avg. Avg RE-RE Avg CWC 82 Wells Time Period Rate ( of Wells) Avg CLAT (ft) (Rig Days) (MM) 2010 3rd Qtr 1,405 (1) 2,927 22.6 5.8 2010 4th Qtr 5,584 (6) 3,805 19.8 7.1 2011 1st…
  10. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 10
    Marcellus Shale Horizontal Well Performance SWN Gross Operated Production 16,000 700,000 600,000 Gross operated production of approx. 14,000 611 MMcf/d as of September 30, 2013 500,000 Gross Production (Mcf/d) 400,000…
  11. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 11
    Fayetteville Shale Focus Area SWN holds approx. 914,000 net acres in the Fayetteville Shale play (approx 1,400 sq. miles). Mississippian-age shale, geological equivalent of the Barnett Shale in north Texas. SWN discovered the…
  12. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 12
    Fayetteville Shale Continuous Improvement -66% +94% -21% +807% +317% Days to Drill Lateral Length Well Cost F&D Cost Production Reserves (feet in length) ( in millions) ( per Mcf) (in Bcf) (in Bcf) 17.5 5,166 2.53 5,104 4,836 2.39…
  13. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 13
    Midstream Adding Value Beyond the Wellhead DeSoto Gathering Lines Transmission AR Compression Facility 0 10 20 Miles SWNs Fayetteville Shale gathering system is one of the largest in the U.S. At September 30, 2013, gathering…
  14. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 14
    Brown Dense Exploration Project Fayetteville Little River Shale Hempstead Oil Field Arkoma Nevada Camden -4,00 0 Basin -5,00 Gas Field Drew 0 Calhoun Bowie Ouachita SWN Drilled Arkansas Bradley Texarkana Miller Magnolia 1 -6,0…
  15. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 15
    Outlook for 2013 Production target of 653-655 Bcfe in 2013 (estimated growth of 16%). 2012 2013 Guidance Actual NYMEX Price Assumption 2.79 Gas 3.50 Gas 3.75 Gas 4.00 Gas 94.94 Oil 85.00 Oil 85.00 Oil 85.00 Oil Adj. Net Income…
  16. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 16
    The Road to Invest in the Highest PVI Projects. Flexibility in 2013 Capital Program. Maintain Strong Balance Sheet. Deliver the Numbers. Production and Reserves. Maximize Cash Flow. Curiosity to Learning to Innovation to…
  17. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 17
    Appendix 17
  18. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 18
    Financial & Operational Summary Nine Months Ended September 30, Year Ended December 31, 2013 2012 2012 2011 2010 ( in millions, except per share amounts) ( in millions, except per share amounts) Revenues 2,464.1 1,952.6 2,715.0…
  19. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 19
    Gas Hedges in Place Through 2014 Bcf 90 Hedged Avg Price per Mcf Percent 85 Type Volumes (or Floor / Ceiling) Hedged 80 2013 Swaps 285.7 Bcf 4.76 45% 2014 Swaps 232.7 Bcf 4.41 --- 75 70 NYMEX Fixed Price 65 4.22 4.22 4.22 60…
  20. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 20
    SWN is One of the Lowest Cost Operators 4.50 4.00 3.50 3.00 Lifting Cost 2.50 2.00 per Mcfe of Production (3 year average) 1.50 1.00 0.50 0.00 COG RRC UPL SWN SWN NBL CHK FST SM EOG APC DVN XEC PXD APA NFX SD MUR OXY…
  21. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 21
    Fayetteville Shale - Horizontal Well Performance Placed on IP Rate Avg Rate Avg Rate Avg Lateral Time Frame Production (Mcf/d) ( of wells) ( of wells) Length 1st Qtr 2007 58 1,261 1,066 (58) 958 (58) 2,104 2nd Qtr 2007 46 1,497…
  22. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 22
    Fayetteville Shale - Horizontal Well Performance Mcf/d 5000 5,000 ft Well 666 666 601 573 517 471 394 230 342 295 175 135 92 57 38 24 Count 4500 4,000 ft 1669 1670 1534 1460 1366 1259 1122 1012 903 771 654 529 428 333 271 203…
  23. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 23
    Drilling & Completion Major Cost Categories Average 2013 Fayetteville Shale Well Cost Estimate Major Cost Categories - 2,452M Fracture Stimulation Rig OCTG 25% Environmental & Restoration Drilling Fluids Fracture Directional…
  24. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 24
    Water Demand: Perspective Statewide Demand: SWN Operations Demand: 11,500 million gallons/day 10 million gallons/day (600 Wells/year) SWN Operations Less than 0.09% of States water usage 33% 25% Ground Water Recycle/Reused…
  25. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 25
    ArkLaTex Division Arkoma Basin Arkoma Basin Acreage: 114,287 net acres (at 12/31/12) 2012 Reserves: 160 Bcf (4% of total) 2012 Production: 14.1 Bcf (2% of total) Arkoma Basin OK AR East Texas East Texas TX LA East…
  26. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 26
    Denver Julesburg Basin Exploration Project Denver Julesburg Basin Subsea Structure on the Top of Atoka CO KS Denver Arkoma Arkoma Basin Basin Fayetteville Fayetteville Shale Shale Julesburg OK N M AR A Basin R Brown…
  27. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 27
    New Brunswick, Canada Exploration Project Marysville SWN currently holds exploration 2,309,247 acres licenses to over 2.5 million acres within the Maritimes Basin Principal targets are the conventional and unconventional sandstone…
  28. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 28
    U.S. Gas Consumption and Sources Bcf 30,000 25,000 20,000 15,000 U.S. gas production and consumption rising in recent years. 10,000 5,000 0 1975 1980 1985 1990 1995 2000 2005 2010 U.S. Gas U.S. Dry Gas Net…
  29. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 29
    U.S. Electricity Consumption 350 325 300 Billion Kilowatt Hours Per Month 275 250 225 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 Source: Edison Electric Institute 29
  30. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 30
    U.S. Electricity Generation Electricity Generation by Energy Source Electricity Generation Capacities Total 4,060 Billion KWh in 2012. While coal and nuclear power plants operate at high capacity, natural gas power plants are running…
  31. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 31
    U.S. Gas Drilling and Prices Gas Rigs Gas Price Drilling /MMBtu 2,000 16.00 1,500 12.00 1,000 8.00 500 4.00 Gas Rigs Gas Price 0 0.00 Source: Baker Hughes, Bloomberg 31
  32. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 32
    Oil and Gas Price Comparison /Bbl /MMBtu 150 15 Henry Hub Natural Gas WTI Crude (right scale) (left scale) 120 12 90 9 60 6 30 3 0 0 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 Source:…
  33. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 33
    Explanation and Reconciliation of Non-GAAP Financial Measures: Net Cash Flow We report our financial results in accordance with accounting principles generally accepted in the United States of America (GAAP). However, management…
  34. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 34
    Explanation and Reconciliation of Non-GAAP Financial Measures: Adjusted Net Income Additional non-GAAP financial measures we may present from time to time are net income attributable to Southwestern Energy and diluted earnings per share…
  35. Bank of America Merrill Lynch Global Energy Conference – Southwestern Energy Co. – slide 35
    Explanation and Reconciliation of Non-GAAP Financial Measures: Adjusted EBITDA EBITDA is defined as net income plus interest, income tax expense, depreciation, depletion and amortization. Southwestern has included information concerning…

From the store

Browse maps, data & reports in the Shale Experts store