Investor Presentation February 2022 NYSE: SWN www.swn.com 1
Why Invest in SWN Compelling valuation both relative to cash flow and underlying reserves value Economic returns and inventory depth from complementary Haynesville and Appalachia assets Resilient and growing free cash flow…
Our Strategy Enhance corporate and shareholder economic returns CREATE Deliver sustainable free cash flow SUSTAINABLE VALUE Deepen and upgrade the quality and capital efficiency of asset base and inventory Convert resources to…
Strategy Execution in 2021 CREATE PROTECT PROGRESS CAPTURE TANGIBLE SUSTAINABLE FINANCIAL LEADING BENEFITS OF VALUE STRENGTH EXECUTION SCALE Generated 547 MM Achieved 2.0x Company-wide Closed Haynesville free cash flow…
Complementary Assets in Premier US Natural Gas Basins SEC Pre-tax PV-10 (B) Proved Reserves (Tcfe) Appalachia 80% 20% 22.4 12.0x 76% Gas Liquids 21.1 Net Acres: 768,000 Increase Increase 2022E Net Production: 2.8 2.9 Bcfe/day…
Capturing Tangible Benefits of Scale Expanded opportunity set Optimized cost structure 15 years of core inventory Improved margins through cost underpinning long-term economies; delivering 75MM development program of tangible…
Delivering on Our Plan 4Q 2021 RESULTS 341MM Free Cash Flow 633MM 292MM net cash flow capital investment 671MM Adj EBITDA 4.2 Bcfe/day 2.0x leverage 0.31 Adj EPS Strong operational performance set the stage for…
Improving Financial Strength Leverage Improved by 1.5x in 2021 Key Financial Objectives 3.5x Target ranges of 1.5x 1.0x leverage and 3.5 3.0B total debt 2.0x Capital structure that allows for efficient debt reduction Clear…
Disciplined Capital Allocation Framework Expect to Achieve Target Leverage Range in 2022 Resilient free cash flow Target leverage range 1 generation from enterprise maintenance capital investment 3.0x 2.5x 2.0x 2.0x 1.5x 1.5x…
Portfolio Optionality Across Deep High Return Inventory Bas Co o t Haynesville Liquids 12 Haynesville 39 2 . B e 5 ears . B e net production (1) core inventory net production(1) Gas Appalachia Appalachia 1 5 Pre ales Lo…
Appalachia Core Dry Gas and Liquids Position Optionality across low-cost high-margin dry gas and liquids inventory 15 90 25% years of core MBbls of daily liquids Estimated PDP decline supports inventory(1) production from NGLs and…
Haynesville Core Stacked Pay Position Deep high-margin dry gas inventory enhancing returns 13 100% 45% 23 years of core average IRR for wells in of EUR recovered in first year years of total inventory(1) 2022 program(1,2)…
Responsibly Sourced Gas to Premium Markets Balanced portfolio provides marketing Canada: 1% Dawn Greater diversification, sales location optionality and Appalachia: 26% basis protection, supplemented by City Gate Dominion TCO Pool…
Well Positioned to Supply Growing Natural Gas Demand LNG exports projected to further increase demand US natural gas demand is expected to increase by Current 12 Bcf/d of capacity is fully utilized over 10 Bcf per day by 2025 Projected…
ESG is a Core Value Environmental Social Governance Responsible energy Investing in human capital Leadership through accountability development and our communities and transparency Leverage and improve historical Aim for zero…
ESG Strategy Reducing Emissions SWN Responsibly Sourced Gas Announced company-wide responsibly sourced gas of 5 Bcf per day gross production Continuously monitoring for potential emissions with an average 3 devices per pad Well…
ESG Strategy Replace all Water Consumed How does SWN achieve fresh water neutral billion gallons of fresh water returned to 15 local aquifers and watersheds through conservation projects in the 11 communities where we work and…
Attractive Investment Opportunity Today YE 2021 Pre-tax PV-10 (B) Enterprise Value (B) Market recognition of deepened and upgraded 22 21 inventory and more durable free cash flow generation 17 capacity should drive valuation 14 15 11…
Shareholder Value from Free Cash Flow Transformed the Company through strategic execution Capturing tangible benefits of scale Financial strength through the cycle Portfolio optionality with deep high-return inventory Enhanced…
Appendix 22 13
2022 Guidance As of February 24, 2022 PRODUCTION Q1 TOTAL YEAR Gas Production (Bcf) 365 377 1,487 1,517 Liquids (% of production) 11.0% 11.5% 11.5% 12.0% Total (Bcfe) 411 426 1,683 1,723 Total (Bcfe/day) 4.6 4.7 CAPITAL (in millions)…
Natural Gas is Foundational to a Lower Carbon Future US Power Generation by Fuel Source US Emissions and Power Generation 100% 5,000 5 % of total US electric generation 4 Million metric tons CO2 80% 4,000 4 24% 3 60% 38%…
Hedge Position Natural Gas Bcf, /MMBtu Crude MBbls, /Bbl 2022 Total 179 3.26 2022 Total 827 54.18 Q1 315 66 70 2.91 x 3.40 2.19 x 2.66 x 3.18 Q1 1,170 343 40.07 x 50.42 x 57.15 2022 Total 210 3.03 2022 Total 754 53.77…
Hedge Position Ethane MBbls, /Bbl (/gal) Propane MBbls, /Bbl (/gal) 2022 Total 1,655 11.62 (0.28) 2022 Total 1,726 31.26 (0.74) Q1 1,790 135 7.56 x 9.66 (0.18 x 0.23) Q1 1,801 75 16.80 x 21.00 x 31.92 (0.40 x 0.50 x 0.76) 2022…
Hedge Position Butane MBbls, /Bbl (/gal) Natural Gasoline MBbls, /Bbl (/gal) 2022 Total 2022 Total 418 33.78 (0.80) 481 53.45 (1.27) Q1 418 Q1 481 2022 Total 2022 Total 36.22 (0.86) 52.64 (1.25) Q2 459 459 Q2 449 449 2022 Total…
Explanation and Reconciliation of Non-GAAP Financial Measures: Net Cash Flow and Free Cash Flow Net cash flow is defined as cash flow from operating activities adjusted for changes in operating assets and liabilities, merger- related…
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 less…
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 (loss) plus…
Explanation and Reconciliation of Non-GAAP Financial Measures: Pre-tax PV-10 Another such non-GAAP financial measure is pre-tax PV-10. Management believes that the presentation of PV-10 is relevant and useful to our investors as…
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