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1Q 2021 Earnings Presentation – Southwestern Energy Co.

Southwestern Energy Co. · May 4, 2021 · 30 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. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 1
    Investor Presentation May 2021 NYSE: SWN www.swn.com 1
  2. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 2
    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…
  3. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 3
    Northeast Appalachia SWN Overview Net Acres: 217,296(1) 2021E Production: 1,321 Mmcf/day(2) Leading Appalachia gas and liquids 100% gas company Annual production of over 1 Tcfe; Natural gas 80% with material exposure to liquids(2)…
  4. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 4
    Results Delivered Actively repositioned the company to enhance value CREATE PROTECT PROGRESS INCREASE SUSTAINABLE FINANCIAL BEST-IN-CLASS SCALE VALUE STRENGTH EXECUTION Generating meaningful Proactively managed Increased…
  5. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 5
    2021 Plan Prioritizes Value Over Growth DISCIPLINED INVESTMENT Maintenance capital, expect 3 Bcfe/day(1) average production REDUCING DEBT Free cash flow used for debt reduction; expect leverage to approach 2.0x by YE 2021 TIER 1…
  6. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 6
    Relentless Cost Management Additional 10% reduction in 2021 Top quartile well costs across both 1,200 Well Costs / Lateral Foot () dry gas and liquids-rich assets 1,000 824 800 Well cost reductions while optimizing 670 600…
  7. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 7
    Enhancing Financial Strength FREE CASH FLOW AMPLE Utilized for Debt Reduction LIQUIDITY 2X SUSTAINABLE Leverage 88MM Generated YTD 2B Revolving Credit Facility (1) Approaching by YE2021 Strategically Managed Senior Notes…
  8. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 8
    Vertical Integration Delivering Competitive Advantage Drilling Completions Technology Lower cost by increasing lateral lengths and collapsing cycle times Experienced and innovative SWN team setting performance standards Agile…
  9. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 9
    Leading Operational Execution Increasing returns by reducing costs and accelerating cash flow Footage Drilled (ft/day)(1) Completed Stages (stages/day)(2) 2,657 15.0 1,563 1,600 1,178 1,304 7.9 8.0 36% 48% 7.1 5.4 Increase…
  10. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 10
    ESG as a Core Value Our Strategy Environmental Social Governance Early mover in responsible Investing in human capital Diversity of thought energy development and our communities and approach Continue industry leadership Aim…
  11. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 11
    Proven Track Record of Environmental Stewardship Responsible natural gas and liquids producer Leader in Air Quality Leader in Water Conservation 85% LOWER 14.3 BILLION+ Methane intensity substantially lower Gallons of fresh water…
  12. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 12
    Emphasis on Social Responsibility & Corporate Governance Investing in our Supporting the Diversity of thought and employees and communities where we approach on Board of contractors work and live Directors 30,364+ 1.7MM HSE…
  13. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 13
    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…
  14. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 14
    Appendix 15
  15. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 15
    Northeast Appalachia 2020: 72% Gas Takeaway Greater Appalachia Dominion TGP 219 TGP 313 Firm transportation portfolio delivers TGP 300L Marcellus Transco Leidy competitive advantage Low cost with multiple extension options Premium…
  16. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 16
    Southwest Appalachia 2020: 4% Gas Takeaway M2 - Appalachia Dominion Tetco M2 Nymex Related Delivering natural gas to highest 2020: 4% value markets Canada Dawn Approximately 50% of gas delivered directly to Gulf Coast to meet…
  17. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 17
    Increased Scale Capturing Improving NGL Prices Expanded footprint and marketing SWN Liquids Marketing Options optionality enhances value Ethane Firm transportation capacity on Truck to East Coast ATEX Rail Premium Capacity to ATEX…
  18. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 18
    Portfolio Optionality Returns driven capital allocation in assets with diverse commodity profile Southwest Southwest Northeast Appalachia Appalachia Appalachia Ohio Super Ohio Marcellus Rich Gas Rich Gas Dry Gas Southwest Southwest…
  19. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 19
    Northeast Appalachia Dry Gas Well Performance SWN Drilled & Completed Marcellus Dry Gas (Normalized to 10,000 ft lateral) 2020(1) 2021E Average lateral length 10,765 ft 13,913 ft Well cost 6.8 MM 7.8 MM Cost per lateral foot 631…
  20. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 20
    Southwest Appalachia Rich Gas Well Performance SWN Drilled & Completed Marcellus Rich Gas (Normalized to 10,000 ft lateral) 2020(1) 2021E 42% 56% Average lateral length 13,298 ft 12,202 ft Well cost 9.4 MM 8.0 MM Production Mix…
  21. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 21
    Southwest Appalachia Super Rich Gas Well Performance SWN Drilled & Completed Marcellus Super Rich Gas (Normalized to 10,000 ft lateral) 2020(1) 2021E 45% 39% Average lateral length 13,226 ft 15,674 ft Well cost 9.0 MM 9.6 MM…
  22. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 22
    Southwest Appalachia Ohio North Utica Dry Gas Well Performance Ohio North Utica Dry Gas(1) (Normalized to 10,000 ft lateral) Estimated Type Well Average lateral length 14,000 ft Well cost 10.2 MM Cost per lateral foot 725 Gross…
  23. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 23
    Hedge Position Natural Gas Bcf, /MMBtu Crude MBbls, /Bbl Total 71 2.76 Total 1,491 2021 2021 47.78 Q2 198 Q2 1,901 62 2.53 x 2.90 64 38.21 x 46.05 65 2.16 x 2.47 x 2.79 346 33.35 x 43.19 x 48.91 Total Total Total 67 2.79…
  24. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 24
    Hedge Position Ethane MBbls, /Bbl (/gal) Propane MBbls, /Bbl (/gal) Total Total 2021 1,559 7.12 (0.17) 2021 Q2 1,705 Q2 1,955 1.955 21.63 (0.51) 7.14 x 10.40 (0.17 146 x 0.25) Total Total Total Total 2021 1,479 7.30 (0.17)…
  25. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 25
    Hedge Position Butane MBbls, /Bbl (/gal) Natural Gasoline MBbls, /Bbl (/gal) Total Total 2021 2021 Q2 562 Q2 543 562 25.94 (0.62) 543 38.49 (0.92) Total Total Total Total 2021 2021 Q3 509 Q3 491 509 24.94 (0.59) 491 37.61…
  26. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 26
    Financial and Operational Summary Year Ended 3 Months Ended March 31, December 31, 2021 2020 2020 ( in millions, except per share amounts) Revenues 1,072 592 2,308 Adjusted EBITDA (1) 382 206 742 (2) Adjusted Net Income 196 56…
  27. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 27
    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, merger- related expenses and…
  28. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 28
    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…
  29. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 29
    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…
  30. 1Q 2021 Earnings Presentation – Southwestern Energy Co. – slide 30
    Explanation and Reconciliation of Non-GAAP Financial Measures: Net debt / Adj. EBITDA Net debt is defined as short-term debt plus long-term Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, debt, less cash and cash equivalents. Adjusted 2020 2020…

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