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3Q 2019 Investor Update – Southwestern Energy Co.

Southwestern Energy Co. · Oct 30, 2019 · 32 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. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 1
    Contact: Paige Penchas Vice President, Investor Relations paige_penchasswn.com Phone: (832) 796-4068 October 2019 Investor Update NYSE: SWN
  2. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 2
    What Defines SWN Rigorous Our People - Increasing financial Leading Premier quality, capital discipline and technology, large scale efficiency and value focused operating and assets margin capital commercial expansion…
  3. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 3
    SWN at a Glance SWN is an independent energy company Northeast Appalachia with operations focused across 480,000 100% gas 184,024 Net Acres net acres in the Appalachia Basin 2018 Proved Reserves 4.4 Tcf 2019E Production(3) 1,270…
  4. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 4
    Our Strategy in Action Grow differentiated and sustainable shareholder value through returns-focused investment and consistent operational outperformance in leading high quality, concentrated, large scale, low cost assets with an…
  5. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 5
    Q3 2019 Highlights Leading operational efficiency gains expected to result in full-year wells to sales at the high end of guidance while not exceeding 1.15 billion annual capital investment Beating 25% reduction target for full-year…
  6. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 6
    Q3 2019 Highlights Appalachia Weighted Avg. Realized Production (Bcfe) Price, incl. Hedges (/Mcfe) Capital Investment (MM) 8% 19% Liquids increase 13% 19% Increase Decrease Decrease 187 202 2.48 298 2.16 240 Q3 2018 Q3 2019…
  7. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 7
    Investor Relations Top tier balance sheet SWN Debt Maturity Schedule (MM)(1) Differentiated 5 Year Debt Maturity Profile(3,4) 3,500 Sr Notes Wtd Avg YTM: 5.9 years 3.0B 3,000 Sr Notes Wtd Avg Interest: 6.7% Sr Notes Outstanding: 2.3B…
  8. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 8
    Liquids Production and Realizations Third largest liquids producer in Appalachia Greater than 100% liquids revenue growth since 2016 5% 10% 18% increase in liquids production in Q3 2019 compared to Q3 2018 Ethane Propane NGL 42%…
  9. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 9
    Delivering Top Tier Well Costs Now On track to beat well costs target of 875 per lateral foot Increasing average lateral lengths on wells to sales by 35% to over 10,000 ft Successfully drilled 13 ultra-long laterals year to date…
  10. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 10
    Delivering Leading Operational Execution Footage Drilled (ft/day) Completed Stages (stages/day) 29% 6% 2,172 (1) 70% 88% 12.0 (1) 11.4 Increase Decrease Increase Increase 1,700 1,505 7.8 7.5 1,165 1,102 1,248 1,045 1,036 5.2…
  11. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 11
    Vertical Integration Competitive advantages increase capital efficiency Strategic and economic benefit Drilling Services Improves operating efficiency, 7 super-spec drilling rigs execution and flexibility Hydraulic Fracturing…
  12. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 12
    Differentiated Condensate Yield SWN acreage located in highest Marcellus condensate yield position in Appalachia basin High condensate yield, high return super rich drilling locations comprise 60% of 8 year+ liquids-rich inventory(1)…
  13. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 13
    Southwest Appalachia Super Rich Gas Well performance WellSWN Results Exceeding Drilled Expectations & Completed Super Rich Gas Condensate (Normalized to 10,000 ft lateral) Gen 2 Completions (109 wells) 20 BCFe Type Curve 29 BCFe Type…
  14. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 14
    Southwest Appalachia Rich Gas Well performance Well Results Exceeding SWN Drilled Expectations & Completed Rich Gas Condensate (Normalized to 10,000 ft lateral) Gen 2 Completions (20 wells) 36 BCFe Type Curve 42 BCFe Type Curve 48…
  15. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 15
    Northeast Appalachia Dry Gas Well performance SWN Drilled & Completed Dry Gas (Normalized to 9,500 ft lateral) Susquehanna & Bradford (129 Wells) Tioga (24 Wells) 15 BCF EUR Curve 20 BCF EUR Curve 25 BCF EUR Curve 35,000 Daily Rate…
  16. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 16
    Appalachia NGL Capacity Ample regional and SWN processing/fractionation capacity Select basin infrastructure shown, Capacity in place locations are approximate Processing capacity Pennant Keystone 10.5 Bcf/d(1) - In basin…
  17. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 17
    NGL Markets Flow reliability and marketing optionality Appalachia Liquids Marketing Options Ethane Firm transportation capacity on Canadian ATEX and Mariner West with access Petrochemical Markets to Mariner East 1 Midwest…
  18. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 18
    Northeast Appalachia Gas Takeaway Access to diversified and premium markets 2019: 26% City Gate Transportation Cost(1,2,3) Algonquin 2019: 70% Tetco M3 Greater Appalachia TGP Z6 South Total Firm Takeaway Annual WAVG Rate Dominion…
  19. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 19
    Southwest Appalachia Gas Takeaway Right sized with access to premium markets Transportation Cost(1,2,3) 2019: 9% M2 Appalachia Total Firm Takeaway Annual WAVG Rate Dominion Year (MMBtu/d) per MMBtu Tetco M2 NYMEX Related 2019…
  20. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 20
    Appalachia Resource Potential Resource Potential (Tcfe) Resource Breakdown 53 Lower Marcellus 23 Tcfe 42 Upper Marcellus 4 Tcf Upper Devonian 10 Tcfe Utica / Point Pleasant 16 Tcf Total 53 Tcfe YE 2017 YE 2018 Total…
  21. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 21
    Building Long-Term Shareholder Value Dynamic and disciplined capital allocation Transition back to free cash flow neutral by end of 2020 Strong and flexible balance sheet Diversified commodity risk gas, NGLs, oil Improving costs,…
  22. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 22
    Appendix 2222
  23. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 23
    An Industry Leader in Corporate Responsibility Methane emissions from Appalachian assets of 0.057%, over 96% lower than the national average Highest score among 30 largest North American publicly traded oil and gas producers in…
  24. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 24
    Environmental, Social and Governance Board independence Management compensation 7 out of 8 directors are independent Independent directors approve compensation President and CEO only non-independent Mix of awards weighted heavily on…
  25. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 25
    Industry Leader in Corporate Responsibility Safety first. One team culture goal used by FRESHWATER all contractors and employees POSITIVE Founding member, dedicated to reducing Total recordable injury rate of 0.64 in 100% of SWN…
  26. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 26
    Hedge Position Gas Hedge Summary(1) Oil Hedge Summary 2019 2020 2021 Year Volume (Bbl/day) Weighted Average Price (/Bbl) Swaps 61 151 0 2019 12,516 60.24 2-Way Collars 6 0 0 2020 7,750 58.48 3-Way Collars 44 209 134 2021 2,000…
  27. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 27
    Hedge Position Natural gas hedges by quarter as of September 30, 2019 Hedge Hedge Summary Summary 160 2019 2019 (Rem.) (Rem.) 2020 2020 2021 2021 Swaps Swaps 61 61 151 151 00 2-Way 2-Way Collars Collars 66 00 00 140 134…
  28. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 28
    Financial and Operational Summary 9 Months Ended Septem ber 30, Year Ended Decem ber 31, 2019 2018 2018 2017 ( in millions, except per share amounts) ( in millions, except per share amounts) Revenues 2,293 2,687 3,862 3,203 Adjusted…
  29. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 29
    Explanation and Reconciliation of Non-GAAP Financial Measures: Net Cash Flow We define net cash flow as cash flow from operating activities adjusted for changes in operating assets and liabilities and restructuring charges. Management…
  30. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 30
    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…
  31. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 31
    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…
  32. 3Q 2019 Investor Update – Southwestern Energy Co. – slide 32
    Explanation and Reconciliation of Non-GAAP Financial Measures: Net debt / Adj. EBITDA Net debt is defined as short-term debt plus long-term debt less cash and cash equivalents. Adjusted EBITDA is defined as net income plus interest,…

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