Investor Presentation May 2020 NYSE: SWN www.swn.com 1
Northeast Appalachia SWN Overview Net Acres: 173,994 YE 2019 Proved Reserves: 4.8 Tcf (1) SWN is an independent energy company with 2020E Production: 1,265 MMcf/d (2) operations focused across 460,000 net acres in the Appalachia…
Shareholder Returns Driven Strategy Position SWN as a gas and gas liquids leader in Appalachia Increasing Progress Protect Resilience & Best-In-Class Execution Financial Strength Relevance Further enhance well performance Invest in…
Our Strategy in Action Consistently delivering results On track to reduce well costs more than 100 per lateral foot in 2020 after a 27% reduction in 2019; full year average expected to be 715 per foot Progress Leveraging asset…
Portfolio Optionality Returns driven capital allocation Assets with diverse commodity profile competing for investment with rigorous internal hurdles Returns Driven Investment Flexibility Operational agility supports portfolio…
Top Tier Balance Sheet & Liquidity SWN Debt Maturity Schedule (MM) (1) Differentiated 5 Year Senior Note Maturity Profile (2,3,4) 2.2B 1,800 2.0B 1.8B No significant senior note maturities until 2025 864 0.8B 0.9B 621 453 210…
Driving Top Tier Well Costs Lower Well Costs per Lateral Foot () 741 674 632 605 2020E (1) Record (2) 2020E (1) Record (2) Southwest Appalachia Northeast Appalachia (Liquids-rich) (Dry gas) Leading well costs across both dry…
Vertical Integration Competitive advantage delivering top quartile operational performance Strategic and economic benefit derived from efficiency and agility of vertical integration SWN-owned super-spec drilling rigs and frac fleet…
Appalachia Resource Potential Resource to Reserves Converting resource to proved Resource Potential (Tcfe) reserves through subsurface expertise, 53 53 performance improvements and cost 42 reductions Further progression of Upper…
Southwest Appalachia 2020: 9% M2 - Appalachia Gas Takeaway Dominion Tetco M2 Nymex Related Delivering natural gas to highest value markets Approximately 60% of gas delivered directly to Gulf Coast to meet long-term LNG and…
Liquids Production Third largest liquids producer in Appalachia, hedged to protect downside Total Liquids Condensate/Oil NGL Production (MBbls/d) Production (MBbls/d) Production (MBbls/d) 82.7 64.7 67.3 77.6 15.4 54.0 12.9 63.3…
Appalachia NGL Capacity SWN has ample processing and fractionation capacity with no unused volume commitments Capacity optionality in place for future growth In-basin capacity eliminates need to fractionate at Conway or Mt.…
NGL Markets Flow reliability and marketing optionality provide flexibility to SWN Liquids Marketing Options optimize pricing Ethane Firm transportation capacity on ATEX and Mariner West with access to Mariner East 1 Ability to reject…
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…
Why Invest in SWN Building long-term shareholder value Premier asset base 460,000 contiguous acres across West Virginia and Pennsylvania with 53 Tcfe of resource potential Tier 1 natural gas acreage high-rate, high-value natural gas…
Appendix Investor Presentation 19 19
Hedge Position Natural Gas Bcf, /MMBtu Crude MBbls, /Bbl 2020 2020 Q1 93MM Settled derivative gain of 63MM(1) Q1 93MM Settled derivative gain of 13MM 2020 Total 109 2.50 2020 Total 676 58.10 Q2 137 28 2.03 x 2.33 x 2.55 Q2…
Hedge Position Ethane MBbls, /Bbl (/gal) Propane MBbls, /Bbl (/gal) 2020 2020 Q1 93MM Settled derivative gain of 6MM Q1 93MM Settled derivative gain of 11MM 2020 Total 2020 Total 1,301 Q2 2,347 Q2 1,392 23.17 (0.55) 2,347…
Northeast Appalachia Dry Gas Well Performance SWN Drilled & Completed Dry Gas (Normalized to 10,000 ft lateral) Susquehanna & Bradford (134 Wells) Tioga (30 Wells) 15 BCF EUR Curve 20 BCF EUR Curve 25 BCF EUR Curve 35,000 30,000…
Southwest Appalachia Rich Gas Well Performance SWN Drilled & Completed Rich Gas (Normalized to 10,000 ft lateral) Rich Wells (28 wells) 36 BCFe Type Curve 42 BCFe Type Curve 48 BCFe Type Curve 25,000 20,000 Daily Rate…
Southwest Appalachia Super Rich Gas Well Performance SWN Drilled & Completed Super Rich Gas (Normalized to 10,000 ft lateral) Super Rich Wells (131 wells) 20 BCFe Type Curve 29 BCFe Type Curve 35 BCFe Type Curve 18,000 15,000 Daily…
Superior Condensate Acreage Largest in Appalachia Basin Highest condensate yield and Highest Condensate Yield Cumulative Condensate production across 108,000 acres Acreage (2) Production (2,4) in Appalachia, resulting in a higher…
Air SWN maintains an ongoing, proactive commitment to methane and GHG emission reduction Approach to minimizing GHG emissions Engineering Leak Detection 96% Design on 100% of wells METHANE LEAK/LOSS RATE Collaboration with…
11+ 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- BILLION lasting conservation projects 77% Water Reuse GALLONS…
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 Year Ended 3 Months Ended March 31, December 31, 2020 2019 2019 ( in millions, except per share amounts) Revenues 592 990 3,038 (1) Adjusted EBITDA 206 319 973 (2) Adjusted Net Income 56 145 328…
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 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 (loss) plus interest, income tax expense, depreciation, depletion and amortization. Adjusted EBITDA is defined as EBITDA…
Explanation and Reconciliation of Non-GAAP Financial Measures: Net debt / Adj. EBITDA Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Net debt is defined as short-term debt plus long-term debt less cash and cash equivalents. Adjusted EBITDA is…
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