Southwestern Energy Company General Information Southwestern Energy Company is a leading natural gas and oil company with operations predominantly in the United States, engaged in exploration, development, production, natural gas…
Focus on Premier Quality Assets Reserves & Production 2016 Reserves: 5,253 Bcfe Q1 2017 Reserves: 10 Tcfe 2016 Production: 875 Bcfe Northeast Appalachia PA 2016 Reserves 1,574 Bcf (30%) 2016 Production 350 Bcf (40%) Net acres…
Enhancing Shareholder Value 4
Improving Capital Efficiency Allocation of capital based on individual project economics Decreasing proved developed F&D resulting from portfolio shift to Appalachia Improvement driven by premier assets combined with operational…
Southwest Appalachia Core position in premier play targeting stacked pays Gas in Place Map SWN acreage shown in yellow Operational excellence driving Bcf/Section 50 Bcf inventory and margin expansion 100 Bcf 150 Bcf 200 Bcf Total…
Increasing NGL Realizations Driving economics in Southwest Appalachia Improving NGL prices resulted in 25MM increase in Q1 2017 margins vs Q1 2016 Realized 125% increase in C3+ pricing as a result increasing demand and export…
Southwest Appalachia Completions testing enhancing well performance Pursuing technical and economic limit of completions methods that will provide opportunities to optimize well economics through dynamic market conditions Early…
Southwest Appalachia Innovation driving results Alice Edge Wells outperforming based on 1 yr cumulative production Phase 1 wells have outperformed previous operated wells by 60% Phase 2 wells have outperformed Phase 1 wells by…
Well-Positioned in Core Utica Acreage O.E. Burge 501H operational highlights Drilled 100% in target interval CLAT 8,061 Placed 100% of sand/ceramics Mix of sand/ceramics 200 stage spacing 3,000 lbs/ft Well productivity…
Northeast Appalachia Delivering value now & in the future SWN Acreage Webster Pad (2 Wells): Avg Lateral Length: 10,110 Recent Delineation Wells Avg 30 day rate per well: 15 MMcf/d Lepley Pad (2 Wells): Avg Lateral Length: 6,669…
Northeast Appalachia Completions Enhancing economics Susquehanna County initial EUR increase of over 25% due to changes in completion intensity and flowback methods Cumulative production increase of over 200% in the first 30 days…
Fayetteville Significant asset with upside promise SWN Acreage Gross operated production was 1,342 MMcf/d (885 MMcf/d net) as of Mar 31, 2017 Aggressively pursuing alternatives to drive enhanced economics Confirmed Moorefield…
Moorefield Well Performance Placed 13 wells to sales targeting the Lower Moorefield since mid-2015 with an EUR of 5.8 Bcf and average lateral length of 6,755 feet Recent 7-well pad demonstrating an average EUR of 6.5 Bcf per well…
Fayetteville Completions Enhancing economics Enhanced completions with increased proppant loading and reduced cluster spacing - Average cumulative production improvement of 20% - Enhanced completions in less depleted areas showing…
Improving Basis Differentials SWNs transportation portfolio is structured to Estimated Weighted Average Sales Differential capture materially improving Northeast basis (excluding transportation)(1) differentials 2017 2018 2019…
Fully Funded 2017 Capital Program Dynamic portfolio allowing flexibility to align activity with commodity prices Appalachian assets expected to grow approximately 17% (using midpoints) over 2016 annual production volumes and…
Hedging Protecting balance sheet and targeted returns Hedge Summary 200 2017 REM 2018 2019 180 Swaps 262 68 160 2-Way Collars 65 23 144 146 139 3-Way Collars 102 245 99 140 2.29 x 2.29 x Total (Bcf) 429 336 99 Volumes…
Debt Maturity Schedule Strong liquidity position Cash balance anchors liquidity position Recently announced plans to call remaining 2018 maturities in 2Q 2017 No significant maturities before 2020(1) Significantly improved credit…
An Industry Leader in Corporate Responsibility Recently achieved fresh water neutral in each operating area Offset 100% of the volume of fresh water used in SWN operations PROTECTION INNOVATION Wellbore Integrity Completion…
Delivering Shareholder Value+ Value-driven growth within cash flow Margin expansion through cost reductions and improved well productivity Rigorous financial discipline Enhancing value from vertical integration Driving…
Appendix 22
Northeast Appalachia Takeaway Low cost portfolio with extensive market reach 1.6 1.4 1.2 Transport Extension Options 1.0 Bcf/d 0.8 Constitution (project not in service) 0.6 Firm Transportation Capacity 0.4 0.2 Firm…
Southwest Appalachia Takeaway Increasing Gulf Coast market exposure 1.0 0.9 0.8 0.7 0.6 Columbia Gas Transmission MXP (project not in service) Bcf/d 0.5 0.4 0.3 ET Rover (project not in service) 0.2 0.1 Firm…
Fayetteville Takeaway High correlation to Henry Hub 2.5 2.0 1.5 Bcf/d 1.0 Firm Transportation Capacity 0.5 0.0 Sales Locations 100% SWN Firm Reservation Total Firm Annual 100% 100% 100% Firm Sales Rate per…
Southwest Appalachia Rich Gas Horizontal well performance Well Results Exceeding Expectations SWN Drilled & Completed Rich Gas Condensate (Normalized to 7,500 ft lateral) Production Mix Gas 20% 36% NGL Oil 44% Average Avg…
Southwest Appalachia Lean Gas Horizontal well performance Well Results Exceeding Expectations SWN Drilled & Completed Lean Gas Condensate (Normalized to 7,500 ft lateral) Production Mix 1% Gas 38% NGL 61% Oil Average Avg…
Northeast Appalachia Continued improvement Operating Statistics of wells Average Average Avg Rate for Avg Rate 1st for 1st Completed Completed Time Frame placed to 30 Days 60 Days Lateral Well Cost 25.6 sales (Mcfe/d) (Mcfe/d)…
Northeast Appalachia Materially improved well performance Susquehanna County initial EUR increase of over 25% due to changes in completion intensity and flowback methods 20,000 Susquehanna County 18,000 16,000 14,000 Daily…
Northeast Appalachia Well performance by county 8,000 Company Operated Drilled Wells (Utilizing Historical Completion Designs) 7,000 6,000 5,000 Daily Rate, MCFPD 4,000 3,000 2,000 1,000 0 0 365…
Fayetteville Operating Statistics 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 (ft) 3.2 10.9 2.8 2.8 2.8 1st Qtr 2014 105 4,272 2,616…
Midstream SWN Marketing 2016 Total volumes marketed (Bcfe) 1,062 Q1 2017 Total volumes marketed (Bcfe) 245 Fayetteville Shale Gathering Gathered volumes at March 31, 2017 (Bcf/d) 1.5 Gathering lines at March 31, 2017 (Miles)…
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 Decem ber 31, 2017 2016 2016 2015 2014 ( in millions, except per share amounts) ( in millions, except per share amounts) Revenues 846 579 2,436 3,133 4,038…
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…
Explanation and Reconciliation of Non-GAAP Financial Measures: Adjusted Net Income Attributable to Common Stock Additional non-GAAP financial measures we may present from time to time are adjusted net income attributable to common stock…
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, gains (losses) on sale of assets, write-down of…
Explanation and Reconciliation: Proved Developed Finding and Development Costs Proved developed (PDP) finding and development (F&D) costs are computed here by dividing exploration and development capital costs incurred, excluding…
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