Investor Presentation March 2021 NYSE: SWN www.swn.com 1
Shareholder Returns Driven Strategy Increasing resilience & relevance through people and innovation CREATE PROTECT SUSTAINABLE VALUE FINANCIAL STRENGTH Deliver free cash flow Invest in highly economic projects that strengthen…
Northeast Appalachia SWN Overview Net Acres: 217,296(1) 2021E Production: 1,321 Mmcf/day(2) 100% gas Leading Appalachia gas and liquids company, over 1 Tcfe in annual production(2) Low cost operator Proven integrator…
Results Delivered Actively repositioned the company to enhance value Create Protect Increase Drive Sustainable Financial Scale Best-In-Class Value Strength Execution Strategic repositioning Protected cash flows Accretive Montage…
2021 Plan Prioritizes Value Over Growth Disciplined investment Commitment to maintenance capital, expect production to average 3 Bcfe/day(1) Free cash flow generation Expect free cash flow to exceed 275MM; increases to over 375MM at…
Relentless Cost Management Top tier well costs Margin enhancing cost reductions Delivered 40% reduction in two years Delivered 40% reduction in two years 1,200 0.20 Well Costs / Lateral Foot () 1,000 0.15 G&A (/Mcfe) 800…
Portfolio Optionality Returns driven capital allocation in assets with diverse commodity profile Southwest Southwest Northeast Appalachia Appalachia Appalachia Ohio Super Marcellus Ohio Marcellus Rich Gas Rich Gas Dry Gas…
Integrated Approach Delivering Competitive Advantage Drilling Completions Technology Increasing lateral lengths and collapsing cycle times Efficient and flexible operations resulting in lower costs and improved well economics…
Commitment to ESG is a core value of SWN Our Strategy Environmental Social Governance Early mover in responsible Investing in human capital Diversity of thought energy development and our communities and approach Continue…
Proven Track Record of Environmental Stewardship Responsible natural gas and liquids producer SWN as a leader in air quality NATURAL GAS INDUSTRY 85% Methane intensity substantially lower lower than ONE Future target 100% Operational…
Emphasis on Social Responsibility & Corporate Governance Supporting the Diversity of thought and Investing in our employees communities where we approach on Board of and contractors work and live Directors 1.7MM 9,800+ GIVEN…
Listening to Investor Feedback Regarding Executive Compensation 2021 Executive Compensation 20% decrease to long-term incentive compensation as integral part of our stringent cost focus No annual cash compensation increases Annual…
Why Invest in SWN DISCIPLINED CAPITAL ALLOCATION TIER 1 NATURAL GAS ASSET BASE Asset flexibility with diverse commodity profile competing in 789,000 acres of high-rate, high-value natural gas assets across capital program with rigorous…
Appendix 17 17
2021 Guidance As of February 25, 2021 PRODUCTION BY QUARTER Q1 Q2 Q3 Q4 TOTAL YEAR Gas (Bcf) 211 216 217 223 219 226 226 233 873 898 Oil/Condensate (MBbls) 1,575 1,675 1,890 2,015 1,710 1,835 1,500 1,625 6,675 7,150 NGLs (MBbls) 7,425…
Southwest Appalachia 2020: 4% Gas Takeaway M2 - Appalachia Dominion Tetco M2 Nymex Related Delivering natural gas to highest 2020: 4% Canada value markets Dawn Approximately 50% of gas delivered directly to Gulf Coast to…
Increased Scale Capturing Improving NGL Prices Expanded footprint and marketing SWN Liquids Marketing Options optionality enhances value Ethane Truck to Firm transportation capacity on premium East Coast ATEX Rail Capacity to…
Northeast Appalachia Dry Gas Well Performance SWN Drilled & Completed Marcellus Dry Gas (Normalized to 10,000 ft lateral) 2019(1) 2020(2) Average lateral length 9,029 ft 10,765 ft Well cost 7.3 MM 6.8 MM Cost per lateral foot 809…
Southwest Appalachia Rich Gas Well Performance SWN Drilled & Completed Marcellus Rich Gas (Normalized to 10,000 ft lateral) 2019(1) 2020(2) 42% 56% Average lateral length 11,806 ft 13,298 ft Well cost 9.8 MM 9.4 MM Production…
Southwest Appalachia Super Rich Gas Well Performance SWN Drilled & Completed Marcellus Super Rich Gas (Normalized to 10,000 ft lateral) 2019(1) 2020(2) 45% 39% Average lateral length 11,250 ft 13,226 ft Well cost 8.8 MM 9.0 MM…
Southwest Appalachia Ohio North Utica Dry Gas Well Performance SWN Drilled & Completed Utica Dry Gas (Normalized to 10,000 ft lateral) Estimated Type Well Average lateral length 14,000 ft Well cost 10.2MM Cost per lateral foot 725…
Hedge Position Natural Gas Bcf, /MMBtu Crude MBbls, /Bbl 2020 2020 FY 93MM Settled derivative gain of 249MM(1) FY 93MM Settled derivative gain of 91MM 27 2021 Total 2.88 2021 Total 1,615 47.21 Q1 172 Q1 1,705 60 2.57 x 3.00 45…
Hedge Position Ethane MBbls, /Bbl (/gal) Propane MBbls, /Bbl (/gal) 2020 2020 FY 93MM Settled derivative gain of 6MM FY 93MM Settled derivative gain of 20MM 2021 Total 1,547 7.14 (0.17) 2021 Total Q1 1,691 Q1 1,786 7.14 x 10.40…
Financial and Operational Summary Year Ended December 31, 2020 2019 ( in millions, except per share amounts) Revenues 2,308 3,038 Adjusted EBITDA (1) 742 973 (2) Adjusted Net Income 221 328 (1) Net Cash Flow 662 913 (2) Adjusted…
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 Dec 31, Mar 31, Jun 30, Sep 30, Dec 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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