Investor Presentation April 2022 NYSE: SWN www.swn.com 1
Shareholder Value from Free Cash Flow Transformed Company through strategic execution Capturing tangible benefits of scale Financial strength through the cycle Portfolio optionality with deep high-return inventory Enhanced…
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…
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 (1) 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 Q1 2022 RESULTS 317MM Free Cash Flow 861MM 544MM net cash flow capital investment 905MM Adj EBITDA 4.7 Bcfe/day 508MM 1.7x leverage debt reduction Strong first quarter results highlight strength of…
Improving Financial Strength Leverage Nearing Target Range Key Financial Objectives 3.5x Target ranges of 1.5x 1.0x leverage and 3.5 3.0B total debt 2.0x 1.7x 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…
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 Enhanced free cash flow from optionality across low-cost high-margin dry gas and liquids inventory 15 90 25% years of core inventory MBbls of daily liquids Estimated PDP decline with…
Haynesville Core Stacked Pay Position Growing free cash flow from 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)…
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…
Access to Premium Gulf Coast Markets Natural gas sales into LNG corridor and greater Perryville area with low-cost transportation LEAP capacity expanding from 1.0 Bcf/d to 1.3 Bcf/d(1) combined with Midcoast and Acadian (0.4 Bcf/d)…
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…
Advantaged to Reliably Supply Expanding LNG Corridor Cove Point WNs ere t ate pos t o g to s ppl grow g LNG e a Proximity largest Haynesville producer Scale 3 Bcf/d gross gas currently sold in Gulf Coast Durability 20+ years…
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…
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 reaching premium domestic and global…
Appendix 22 13
2022 Guidance As of April 28, 2022 PRODUCTION Q2 TOTAL YEAR Gas Production (Bcf) 370 382 1,487 1,517 Liquids (% of production) 11.5% 12.0% 11.5% 12.0% Total (Bcfe) 418 434 1,683 1,723 Total (Bcfe/day) 4.7 4.7 CAPITAL (in millions)…
Hedge Position Natural Gas Bcf, /MMBtu Crude MBbls, /Bbl Total 210 3.03 Total 2022 2022 754 53.77 333 31 2.55 x 2.93 Q2 92 2.03 x 2.48 x 2.88 Q2 1,101 347 39.90 x 50.24 x 57.05 Total Total Total 210 3.03 Total 2022 2022 776…
Hedge Position Ethane MBbls, /Bbl (/gal) Propane MBbls, /Bbl (/gal) Total Total 2022 2022 1,570 30.83 (0.73) 1,360 11.10 (0.26) Q2 1,360 Q2 1,646 76 16.80 x 21.00 x 31.92 (0.40 x 0.50 x 0.76) Total Total Total Total 2022 2022…
Hedge Position Butane MBbls, /Bbl (/gal) Natural Gasoline MBbls, /Bbl (/gal) Total Total 2022 2022 459 495 459 36.22 (0.86) 495 55.78 (1.33) Q2 Q2 Total Total Total Total 2022 2022 464 36.22 (0.86) 55.78 (1.33) 464 501…
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 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 Adjusted EBITDA(1) debt, less cash and cash equivalents. Adjusted Q1 2021 Q2 2021 Q3 2021 Q4 2021…
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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