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November 2015 Update – Southwestern Energy Co.

Southwestern Energy Co. · Nov 2, 2015 · 36 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. November 2015 Update – Southwestern Energy Co. – slide 1
    November 2015 Update NYSE: SWN
  2. November 2015 Update – 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. November 2015 Update – 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 + 3rd largest producer of natural gas…
  4. November 2015 Update – 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: 973-982 Bcfe NORTHEAST APPALACHIA A 2014 Reserves: 3,192 Bcf (30%) 2014 Production: 254 Bcf…
  5. November 2015 Update – Southwestern Energy Co. – slide 5
    Proven Track Record (2) Production Adjusted EBITDA (Bcfe) (1) (MM) 978 2,320 1,997 768 1,774 657 1,602 1,638 565 1,362 1,383 500 1,150 405 300 675 195 113 07 08 09 10 11 12 13 14 15F 07 08 09 10 11 12 13 14 9M15…
  6. November 2015 Update – 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 Length Well Cost…
  7. November 2015 Update – Southwestern Energy Co. – slide 7
    Enhanced Position in Core Areas of Premier Play SWN acreage shown in yellow SWN holds approximately 443,000 net acres in West Virginia and southwest Pennsylvania Wells drilled and completed by SWN are Bcf/Section showing…
  8. November 2015 Update – Southwestern Energy Co. – slide 8
    Well-Positioned in Rapidly Developing Play Acquired acreage is low-risk opportunity 1 in the heart of world-class play Lateral IP IP30 % Liquids 2 ID Operator Well Name Length (Mmcfe/d) (Mmcfe/d) at IP30 (feet) 3 1 MARCELLUS 2…
  9. November 2015 Update – Southwestern Energy Co. – slide 9
    Northeast Appalachia Note: Red dots display wells drilled We hold approximately 312,000 net acres in Northeast Pennsylvania. Gross operated production was 1,237 MMcf/d from 393 operated horizontal wells as of September 30,…
  10. November 2015 Update – Southwestern Energy Co. – slide 10
    Fayetteville Shale Focus Area Notes: Data as of September 30, 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. November 2015 Update – Southwestern Energy Co. – slide 11
    Capital Investments Exploration BY SPENDING TYPE in Millions and Other 5% 2,440 2,500 SW 2,207 2,235 Fayetteville 2,120 Appalachia 2,081 32% 29% 1,875 2,000 1,500 E&P BY DIVISION 1,000 2015 500 0 2010 2011 2012…
  12. November 2015 Update – Southwestern Energy Co. – slide 12
    Our Path Forward Production target of 973 982 Bcfe in 2015 (estimated growth of 27%). (1) (1) 2014 2015 Guidance Actual NYMEX Price Assumption 4.41 Gas 2.75 Gas 3.00 Gas 3.00 Gas 92.91 Oil 60.00 Oil 50.00 Oil 60.00 Oil Adj. Net…
  13. November 2015 Update – 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. November 2015 Update – Southwestern Energy Co. – slide 14
    Appendix 14
  15. November 2015 Update – Southwestern Energy Co. – slide 15
    About Southwestern US Lower 48 Gas Production Sorted by 2Q15 (MMcf/d) 4,000 3,500 SWN is 3rd overall as of 2Q15 3,000 2,500 2Q15 2Q14 2,000 2Q13 2Q12 1,500 2Q11 2Q10 1,000 2Q09 500 - EQT QEP OXY…
  16. November 2015 Update – Southwestern Energy Co. – slide 16
    2015 Gas Hedges in Place Bcf 150 Fixed Price 140 Total Volumes Hedged 240 Bcf % of Estimated Gas Production 27% 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. November 2015 Update – Southwestern Energy Co. – slide 17
    Northeast Appalachia Takeaway Agreements for 4 Bcf/d incremental takeaway capacity in northeast have been executed by the industry. 1.6 1.4 Constitution Transco 1.2 TCO Estimated SWN Marketed Volumes at October 1, 2015 1.0…
  18. November 2015 Update – Southwestern Energy Co. – slide 18
    Southwest Appalachia Takeaway Agreements for 10 Bcf/d in SW PA / West Virginia / Ohio from 2015 2018 have been executed by the industry. 0.9 0.8 0.7 0.6 MXP/GXP 0.5 Bcf/d 0.4 Estimated SWN Marketed Volumes at…
  19. November 2015 Update – Southwestern Energy Co. – slide 19
    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) James…
  20. November 2015 Update – Southwestern Energy Co. – slide 20
    Northeast Appalachia Horizontal Well Performance Proven History of Effectively Ramping Activity Quickly Average Average 30th-Day Completed Average RE- Completed Gross operated production of approx. Time Frame Avg Rate RE 1,237…
  21. November 2015 Update – Southwestern Energy Co. – slide 21
    Northeast Appalachia Well Performance by County Company Operated Drilled Wells 21
  22. November 2015 Update – Southwestern Energy Co. – slide 22
    Fayetteville Shale Horizontal Well Performance Wells Average 30th-Day 60th-Day Average Time Frame Placed on IP Rate Avg Rate Avg Rate Lateral Production (Mcf/d) ( of wells) ( of wells) Length SWN Gross Operated Production 2007 255…
  23. November 2015 Update – Southwestern Energy Co. – slide 23
    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…
  24. November 2015 Update – Southwestern Energy Co. – slide 24
    Midstream SWN MARKETING 2015 Estimated Discount to NYMEX Gas (/Mcf) 0.75 - 0.85 2015 Estimated Gas Volumes Marketed (Bcf) 1,050 1,070 2015 Estimated EBITDA (MM)(1) 45 - 55 FAYETTEVILLE SHALE GATHERING Gathered Volumes at…
  25. November 2015 Update – Southwestern Energy Co. – slide 25
    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…
  26. November 2015 Update – Southwestern Energy Co. – slide 26
    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…
  27. November 2015 Update – Southwestern Energy Co. – slide 27
    Drilling & Completion Major Cost Categories Average Fayetteville Shale Well Cost Estimate Major Cost Categories Fracture Stimulation Water Treatment/Disposal Rig OCTG Fracture Stimulation D&C Fluids 17% Directional Drilling…
  28. November 2015 Update – Southwestern Energy Co. – slide 28
    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 28
  29. November 2015 Update – Southwestern Energy Co. – slide 29
    U.S. Electricity Generation Electricity Generation by Energy Source Total 4,063 Billion KWh (Jul 2014 June 2015) 1 2 1. Geothermal, solar, wood, waste and wind 2. Petroleum and others gases Source: EIA 29
  30. November 2015 Update – Southwestern Energy Co. – slide 30
    U.S. Natural Gas Supply and Demand 12 Month Rolling Average 29 28 27 26 25 24 TCF 23 22 21 20 19 18 17 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14…
  31. November 2015 Update – Southwestern Energy Co. – slide 31
    U.S. Gas Drilling and Prices Gas Rigs Gas Price Drilling /MMBtu Gas Rigs Gas Price Source: Baker Hughes, Bloomberg 31
  32. November 2015 Update – Southwestern Energy Co. – slide 32
    Oil and Gas Price Comparison /Bbl /MMBtu Henry Hub WTI Crude Natural Gas (left scale) (right scale) Source: Bloomberg 32
  33. November 2015 Update – Southwestern Energy Co. – slide 33
    Financial & Operational Summary Nine Months Ended September 30, Year Ended December 31, 2015 2014 2014 2013 2012 ( in millions, except per share amounts) ( in millions, except per share amounts) Revenues 2,446 3,076 4,038 3,371…
  34. November 2015 Update – Southwestern Energy Co. – slide 34
    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…
  35. November 2015 Update – Southwestern Energy Co. – slide 35
    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…
  36. November 2015 Update – Southwestern Energy Co. – slide 36
    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. Adjusted EBITDA is defined as EBITDA less gains…

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