Investor Presentation March 2020 NYSE:SWN www.swn.com Investor Presentation 1
Northeast Appalachia SWN Overview Net Acres: 173,994 2019 Proved Reserves: 4.8 Tcf SWN is an independent energy company with 2020E Production (1) : 1,265 MMcf/d operations focused across 460,000 net acres in 100% gas the Appalachia…
Shareholder Returns Driven Strategy Position SWN as a gas and gas liquids leader in Appalachia Increasing Increase Progress Resilience & Scale Best-In-Class Execution Relevance Capitalizing on strategic opportunities in an industry…
2019 Achievements Driving Future Performance Doing more with less 2020 capital 20% less than 2019 driven by capital efficiencies and cost reductions Operational execution Reducing well costs an additional 100 per lateral foot in 2020…
Top Tier Balance Sheet SWN Debt Maturity Schedule (MM) (1) Differentiated 5 Year Debt Maturity Profile (2,3) 3.2B 2,000 2.4B 2.5B 1.6B No significant maturities until 2025 892 0.9B 639 484 0.2B 213 0 0 0 34 SWN Peer A Peer B…
Liquids Production Third largest liquids producer in Appalachia Condensate/Oil Production Total Liquids Production (MBbls/d) NGL Production (MBbls/d) (MBbls/d) 88.0 71.8 79.7 62.3 64.2 15.4 16.2 71.7 60.4 70.7 54.0 63.3 9.3 9.5…
Superior Condensate Acreage Largest in Appalachia Basin Highest Condensate Yield Acreage (2) Cumulative Condensate Production (2,4) Highest condensate yield and production across 108,000 acres in Appalachia, resulting in a higher…
Peer Leading Condensate Producer Average Initial 6-month Average Initial 6-month Q4 2019 Net Condensate Cumulative Gross Condensate Condensate Yield (1) Production per day (3) Production per Well (2) 43,493 38.5 16.2 10.5 8.8…
Delivering Top Tier Well Costs Today Well Costs per lateral Foot () 1,131 27% Decrease 824 10% Decrease 730 Lateral Length Lateral Length 605 Completion Design Water Systems Completion Design Vertical Integration…
Vertical Integration Competitive advantage delivering top quartile operational performance Strategic and economic benefit derived from vertical integration SWN-owned super-spec drilling rigs and frac fleet Mitigates services cost…
Appalachia Resource Potential Resource to Reserves Converting resource to proved reserves Resource Potential (Tcfe) through subsurface expertise, performance 53 53 42 improvements and cost reductions Further progression of Upper…
Appalachia Proved Reserves Proved Reserves (Tcfe) 12.7 Increased 2019 proved reserves 7% to 12.7 Tcfe 11.9 Lowered Proved Developed (PD) F&D 24% to 0.53 per Mcfe 11.1 Reserve life index of 16.4 years Replaced 203% of production…
Appalachia NGL Capacity SWN has ample processing and fractionation capacity with no unused volume commitments Flow assurance today with capacity optionality in place for future growth In-basin capacity eliminates need to fractionate…
NGL Markets SWN SWN Liquids Marketing Options Flow reliability and marketing optionality provide flexibility to optimize pricing Ethane Firm transportation capacity on ATEX and Mariner West with access to Mariner East 1 Ability to…
Southwest Appalachia Gas Takeaway 2020: 9% M2 - Appalachia Delivering natural gas to highest value markets Dominion Tetco M2 Approximately 60% of gas delivered directly to Gulf Nymex Related Coast to meet growing LNG and industrial…
Corporate Responsibility Operating responsibly is the Right Thing to do, and its good business. It improves our performance overall by reducing costs, minimizing risks and safeguarding employees and communities Air Water Safety SWN…
Building Long-Term Shareholder Value Rigorous, disciplined and returns-based capital allocation process Transitioning back to cash flow neutrality by the end of 2020 Strong and flexible balance sheet; ample liquidity Diversified…
Appendix Investor Presentation 22
2020 Guidance(1) As of February 27, 2020 PRODUCTION BY QUARTER Q1 Q2 Q3 Q4 TOTAL YEAR Gas (Bcf) 150 156 152 158 170 177 170 177 642 668 Oil/Condensate (MBbls) 1,300 1,400 1,200 1,300 1,475 1,575 1,650 1,750 5,625 6,025 NGLs…
Hedge Position Natural Gas Bcf, /MMBtu Crude MBbls, /Bbl Total Total 2020 6 2.88 2020 836 58.13 Q1 108 8 94 2.75 x 3.03 2.34 x 2.73 x 3.07 Q1 1,332 235 261 56.93 x 59.83 44.62 x 54.36 x 59.06 Total Total 2020 2020 731…
Hedge Position Ethane MBbls, /Bbl (/gal) Propane MBbls, /Bbl (/gal) Total Total 2020 2020 Q1 1,237 24.08 (0.57) Q1 1,873 1,146 1,873 8.83 (0.21) 25.20 x 29.40 (0.60 x 0.70) 91 Total Total 2020 2020 24.03 (0.57) Q2 1,259…
Southwest Appalachia Super Rich Gas Well Performance SWN Drilled & Completed Super Rich Gas Condensate (Normalized to 10,000 ft lateral) Super Gen Rich Wells (128 2 Completions (128 wells) wells) 20 BCFe Type Curve 29 BCFe Type…
Southwest Appalachia Rich Gas Well Performance SWN Drilled & Completed Rich Gas Condensate (Normalized to 10,000 ft lateral) Rich Gen 2 Wells (20 wells) Completions (20 wells) 36 BCFe Type Curve 42 BCFe Type Curve 48 BCFe Type Curve…
Northeast Appalachia Dry Gas Well Performance SWN Drilled & Completed Dry Gas (Normalized to 10,000 ft lateral) Susquehanna & Bradford (134 Wells) Tioga (27 Wells) 15 BCF EUR Curve 20 BCF EUR Curve 25 BCF EUR Curve 40,000 Daily Rate…
Air SWN maintains an ongoing, proactive commitment to methane and GHG emission reduction Approach to minimizing GHG emissions 96% METHANE LEAK/LOSS RATE Leak Detection Collaboration with NGOs, Engineering on 100% of government…
Water Management We are committed to Water Stewardship. For every gallon of freshwater used in Operations, that and more is returned to the environment through long-lasting conservation projects 10+ BILLION 77% Water Reuse Freshwater…
Governance Board of directors 7 out of 8 directors are independent President and CEO only non-independent Average board member tenure is less than 5 years 50% diverse (gender, nationality, ethnicity) Best practices Annual say on pay…
Financial and Operational Summary Years Ended December 31, 2019 2018 2017 ( in millions, except per share amounts) Revenues 3,038 3,862 3,203 (1) Adjusted EBITDA 973 1,484 1,247 (2) Adjusted Net Income Attributable to Common…
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…
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. Adjusted EBITDA is defined as EBITDA less gains…
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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