Responding to Todays Price Environment Strong liquidity 2.0B unsecured revolver Over 1.5B undrawn at April 1, 2016 Proactively managing debt maturities No significant maturities until 2018 Maintain and right size balance sheet Review…
SWN Creating Enduring Value Disciplined capital allocation and investment practices Target 1.30 of present value cash flow, discounted at 10%, for each dollar invested (defined as 1.3 PVI) Capital allocation based on highest return…
Liquidity Debt Coverage from Existing Assets (excluding future investments) 10 All debt is unsecured 8 Only one financial debt covenant Debt to total book…
Focus on Premier Quality Assets RESERVES & PRODUCTION 2015 Reserves: 6,215 Bcfe 2015 Production: 976 Bcfe 2016 Estimated production: 815 - 835 Bcfe PA NORTHEAST APPALACHIA 2015 Reserves: 2,319 Bcf (37%) 2015 Production: 360 Bcf…
A Look to the Future Total Resource by Area 70 60 50 40 Tcfe 30 20 10 2016 45% 0 Production 3.00 3.50 4.00 4.00 55% Split Fayetteville Appalachia Gross Drilling Locations Remaining 3.00 3.50 4.00 4.00…
Southwest Appalachia SWN acreage shown in yellow Bcf/Section Core Position in 50 Bcf 100 Bcf 150 Bcf Premier Play 200 Bcf 250 Bcf 300 Bcf 425,000 net acres with stacked pays creating more than 800,000 net developable acres…
Extending Proven Track Record of Performance SW Appalachia 1 Year Later Created additional value from 40% improved well performance Geosteered in target zone 94% of time (formerly 46% to 74%) Tighter stage spacing and increased…
Well-Positioned in Rapidly Developing Play Acreage is low-risk opportunity in the heart of world-class play 1 Lateral IP ID Operator Well Name Length (Mmcfed/ % Liquids (feet) 1000 Lateral) 2 MARCELLUS 1 1 SWN Rayle Coal 1H…
Northeast Appalachia SWN Acreage Gross operated production of 1,189 Proved reserves of 2.3 Tcf as of MMcf/d (1,008 MMcf/d net) as of December 31, 2015 with a 3-Year F&D March 31, 2016 of 0.42 per Mcf (1) 270,000 net acres and…
Fayetteville SWN Acreage Gross operated production was 1,611 Proved reserves of 3.3 Tcf as of MMcf/d (1,054 MMcf/d net) as of December 31, 2015 with a 3-Year F&D March 31, 2016 of 0.74 per Mcf (1) 958,000 net acres in the…
Capital Allocation By Investment Type in Millions Discretionary Capitalized 2,440 Capital Interest & 2,500 2,235 30% Expenses 70% 1,828 2,000 1,500 Capital Breakdown 1,000 350 - 400 2016 500 0 (1) (1) 2013 2014 2015 2016…
Northeast Appalachia Takeaway 1.6 1.4 1.2 Transport Renewal Options 1.0 Bcf/d 0.8 0.6 Constitution (project not in service) 0.4 Firm Transportation Capacity 0.2 0.0 Firm Sales Sales Locations SWN Firm…
Southwest Appalachia Takeaway 0.90 0.80 0.70 0.60 0.50 Columbia Gas Transmission MXP (project not in service) Bcf/d 0.40 0.30 ET Rover (project not in service) 0.20 0.10 Firm Transportation Capacity Firm Sales…
Fayetteville Takeaway 2.5 2.0 1.5 1.0 Firm Transportation Capacity 0.5 0.0 Sales Locations SWN Firm Reservation Total Firm Annual 120% Firm Sales Rate per Year Transport Rate per Transport WAVG Rate (MMbtu/d)…
Our Path Forward Production 2015 (1) 2016 Guidance target of 815 Actual NYMEX Price Impacts of Incremental 835 Bcfe in 2016 2.66 Gas 2.35 Gas 48.80 Oil 35.00 Oil 0.25 Gas 5.00 Oil Adj. Net Income (Loss) 71 MM (160)-(180) MM +…
Hedging 2016 Hedges 80 Full Year 2016 % of Production Hedged % Hedged 15% Swaps 69 Bcf 2.49 Q1 3% 70 Volumes 112 Bcf Puts 43 Bcf 2.35 Q2 26% Average Floor Price 2.44 Total 112 Bcf 2.44 Q3 20% 60 Q4 12% Volumes Hedged, Bcf…
Southwest Appalachia Horizontal Well Performance Early Well Results Exceeding Expectations Avg Rate Avg Rate 30th-Day 60th-Day Average Average Wells Average For 1st 30 For 1st 60 Time % Gas / % Gas / Completed Drilling Placed on…
Southwest Appalachia Type Curves 24
Northeast Appalachia Operating Statistics 30th-Day Average Completed Average RE- Average Completed Time Frame Avg Rate RE Lateral Well Cost ( of wells) (Rig Days) 25.6 Length (ft) (MM) 7.0 7.0 5.9 6.2 6.1 1st Qtr 2014 7,009 (…
Northeast Appalachia Well Performance by County 26
Fayetteville Operating Statistics Time Frame Wells Average Placed on IP Rate 30th-Day Avg Rate 60th-Day Avg Rate Average Lateral Production (Mcf/d) ( of wells) ( of wells) Length 2.8 2.8 2.8 10.9 1st Qtr 2014 105 4,272 2,616 (…
Fayetteville Horizontal Well Performance Normalized to 5,300 ft. lateral Notes: Data as of December 31, 2015. Excludes shut-in wells and wells with mechanical problems (114). 28
U.S. Natural Gas Supply & Demand 29 12 Month Rolling Average 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 Jan-15 Jan-16…
Financial and Operational Summary 3 Months Ended March 31, Year Ended December 31, 2016 2015 2015 2014 2013 ( in millions, except per share amounts) ( in millions, except per share amounts) Revenues 579 933 3,133 4,038 3,371…
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 believes…
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…
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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