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JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co.

Southwestern Energy Co. · Jul 7, 2015 · 33 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. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 1
    July 2015 Update NYSE: SWN
  2. JULY 2015 INVESTOR PRESENTATION – 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. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 3
    Southwestern Energy Consistently Creates Value Strategy built on the formula The Right People doing the Right Things, wisely investing the cash flow from the underlying Assets will create Value + 4th largest producer of natural gas…
  4. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 4
    North American Areas of Operation RESERVES & PRODUCTION D 2014 Reserves: 10,747 Bcfe NB 2014 Production: 768 Bcfe 2015 Estimated Production: 940-955 Bcfe NORTHEAST APPALACHIA A 2014 Reserves: 3,192 Bcf (30%) 2014 Production: 254 Bcf…
  5. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 5
    Proven Track Record (1) Production Adjusted EBITDA (Bcfe) (MM) 2,320 768 1,997 657 1,774 565 1,602 1,638 500 1,362 1,383 405 300 675 195 113 07 08 09 10 11 12 13 14 07 08 09 10 11 12 13 14 Price(2) 6.80 7.52 5.35 4.62…
  6. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 6
    Continuous Improvement Notes: Finding and development costs exclude revisions and capital investments in our sand facility, drilling rig related and ancillary equipment. Fayetteville Shale Days to Drill Lateral Well Cost F&D Cost…
  7. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 7
    Enhanced Position in Core Areas of Premier Play SWN acreage shown in yellow SWN held approximately 413,000 net acres in West Virginia and southwest Pennsylvania as of December 31, 2014 In January 2015, additional transaction…
  8. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 8
    Well-Positioned in Rapidly Developing Play Acquired acreage is low-risk opportunity in the heart of world-class play Lateral 2 IP IP30 % Liquids 1 ID Operator Well Name Length (Mmcfe/d) (Mmcfe/d) at IP30 (feet) 3 MARCELLUS 1 1…
  9. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 9
    Northeast Appalachia We hold approximately 312,000 net acres in Northeast Pennsylvania. Gross operated production was 1,148 MMcf/d from 348 operated horizontal wells as of March 31, 2015. We plan to drill 88 to 92 operated…
  10. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 10
    Fayetteville Shale Focus Area Notes: Data as of March 31, 2015. Rates are AOGC Form 13 and Form 3 test rates. SWN holds approx. 888,000 net acres in the Fayetteville Shale play. SWN discovered the Fayetteville Shale and has…
  11. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 11
    Capital Investments Exploration BY SPENDING TYPE in Millions and Other 6% 2,440 2,500 Fayetteville 2,207 2,235 SW 30% 2,120 2,081 Appalachia 2,015 27% 2,000 1,500 E&P BY DIVISION 1,000 2015 500 0 2010 2011 2012…
  12. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 12
    Our Path Forward (1) 2014 2015 Guidance Actual NYMEX Price Assumption 4.41 Gas 3.00 Gas 3.25 Gas 3.25 Gas 92.91 Oil 60.00 Oil 50.00 Oil 60.00 Oil Adj. Net Income(2) 801 MM 140-160 MM 215-235 MM 240-260 MM Adj. EBITDA(2)(5)…
  13. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 13
    The Road to Invest in the Highest PVI Projects Maintain Strong Balance Sheet Deliver the Numbers Curiosity to Learning to Innovation to 13
  14. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 14
    Appendix 14
  15. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 15
    About Southwestern US Lower 48 Gas Production Sorted by 1Q15 (MMcf/d) 4,000 3,500 SWN is 4th overall as of 1Q15 3,000 2,500 1Q15 1Q14 2,000 1Q13 1,500 1Q12 1Q11 1Q10 1,000 1Q09 500 - XOM QEP OXY BP…
  16. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 16
    2015 Gas Hedges in Place Bcf 150 Fixed Price 140 Total Volumes Hedged 240 Bcf % of Estimated Gas Production 25% 130 Average Price per MMBtu 4.40 120 110 100 90 80 70 60 50 40 30 4.40 4.40 4.40 4.40 20 10 0 1Q 2Q 3Q…
  17. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 17
    Southwesterns Appalachia Takeaway 1.8 Transco 1.6 ET Rover 1.4 Constitution 1.2 Columbia Gas Estimated SWN Marketed Volumes at Jan 1, 2015 1.0 Tennessee Bcd/d 0.8 0.6 Millennium 0.4 0.2 Firm Sales…
  18. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 18
    Southwest Appalachia Type Curves Marcellus Dry Gas Region Utica EUR: 100% Gas EUR: 100% Gas 4 BCFe Type Curve (Based on LL = 7,500 ft) 7 BCFe Type Curve (Based on LL = 7,500 ft) 16.5 BCF Utica Type Curve (Based on LL = 7,500 ft)…
  19. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 19
    Northeast Appalachia Horizontal Well Performance Proven History of Effectively Ramping Activity Quickly 1,200 Average Average 30th-Day Completed Average RE- Completed 1,100 Gross operated production of approx. Time Frame Avg…
  20. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 20
    Northeast Appalachia Well Performance by County Production by County Company Operated Drilled Wells 8,000 7,000 6,000 5,000 Daily Rate, Mcf/d 4,000 3,000 2,000 1,000 0 0 365 730 1095 1460 Days of…
  21. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 21
    Fayetteville Shale Horizontal Well Performance Wells Average 30th-Day 60th-Day Average Time Frame Placed on IP Rate Avg Rate Avg Rate Lateral SWN Gross Operated Production Production (Mcf/d) ( of wells) ( of wells) Length 2,200…
  22. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 22
    Fayetteville Shale Horizontal Well Performance Mcf/d 5,000 5,000 ft Well 913 886 827 764 682 631 584 469 534 504 417 358 300 252 189 131 Count 4,500 4,000 ft 2048 2005 1908 1783 1661 1574 1489 1385 1301 1210 1107 987 862 733 598…
  23. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 23
    Midstream SWN MARKETING 2015 Estimated Discount to NYMEX Gas (/Mcf) 0.70 - 0.85 2015 Estimated Gas Volumes Marketed (Bcf) 1,030 1,050 2015 Estimated EBITDA (MM)(1) 45 - 55 FAYETTEVILLE SHALE GATHERING Gathered Volumes at…
  24. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 24
    Exploration Sand Wash Basin Niobrara N 0 4.5 9 Miles Dry Gas Condensate & Volatile Oil Diamond T Sheep 7-92 1-26 North Hayden 1-26 Welker 42-11 Welker 6-92 1-2H11 Dill Gulch 1-22 Black Oil Proven Hydrocarbon…
  25. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 25
    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 1 Arkansas Bradley SWN 2014 Plan Texarkana Miller…
  26. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 26
    Drilling & Completion Major Cost Categories Average Fayetteville Shale Well Cost Estimate Major Cost Categories 26 Forward-Looking Statement
  27. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 27
    U.S. Gas Consumption and Sources Bcf U.S. gas production and consumption rising in recent years. U.S. Gas U.S. Dry Gas Net Imports Consumption Production Source: EIA 27
  28. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 28
    U.S. Electricity Generation Electricity Generation by Energy Source Total 4,085 Billion KWh (Mar 2014 Feb 2015). 1 2 1. Geothermal, solar, wood, waste and wind 2. Petroleum and others gases Source: EIA 28
  29. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 29
    U.S. Natural Gas Supply and Demand 12 Month Rolling Average Source: EIA 29
  30. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 30
    U.S. Gas Drilling and Prices Gas Rigs Gas Price Drilling /MMBtu Gas Rigs Gas Price Source: Baker Hughes, Bloomberg 30
  31. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 31
    Oil and Gas Price Comparison /Bbl /MMBtu Henry Hub WTI Crude Natural Gas (left scale) (right scale) Source: Bloomberg 31
  32. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 32
    Financial & Operational Summary Quarter Ended March 31, Year Ended December 31, 2015 2014 2014 2013 2012 ( in millions, except per share amounts) ( in millions, except per share amounts) Revenues 933 1,113 4,038 3,371 2,730 Adjusted…
  33. JULY 2015 INVESTOR PRESENTATION – Southwestern Energy Co. – slide 33
    Explanation and Reconciliation of Non-GAAP Financial Measures: Adjusted Net Income Additional non-GAAP financial measures we may present from time to time are adjusted net income and adjusted diluted earnings per share attributable to…

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