Investor Presentation August 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 and return of capital 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 Q2 2022 RESULTS 169MM Free Cash Flow 754MM 585MM net cash flow capital investment 822MM Adj EBITDA 4.8 Bcfe/day 20MM 1.6x leverage share repurchases Disciplined capital allocation strategy further…
Financial Strength and Resilient Free Cash Flow Key Financial Objectives Expect to be able to achieve target ranges of 1.5x 1.0x leverage by YE22 and 3.5 3.0B total debt by YE23 Capital structure allows for efficient debt reduction…
Disciplined Capital Allocation 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 iquids 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…
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 and access largest Haynesville producer with firm transport to LNG corridor Scale 3 Bcf/d gross gas currently…
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 of approximately 31 billion(1) Resilient and growing free cash flow expected to be 1 billion in 2022 and 2 billion annually in…
Appendix 22 13
2022 Guidance As of August 4, 2022 PRODUCTION Q3 TOTAL YEAR Gas Production (Bcf) 378 390 1,510 1,535 Liquids (% of production) 11.5% 12.0% 12.0% Total (Bcfe) 429 444 1,715 1,745 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 776 53.58 2.55 x 2.93 332 29 Q3 93 2.03 x 2.48 x 2.88 Q3 1,122 346 39.84 x 50.18 x 57.02 Total Total Total 207 3.04 Total 2022 2022 846…
Hedge Position Ethane MBbls, /Bbl (/gal) Propane MBbls, /Bbl (/gal) Total Total 2022 2022 1,536 31.22 (0.74) 1,319 11.25 (0.27) Q3 1,319 Q3 1,613 77 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 464 36.22 (0.86) 55.78 (1.33) 464 501 501 Q3 Q3 Total Total Total Total 2022 2022 36.22 (0.86) 55.78 (1.33) 464 501 464…
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 debt, less cash and cash equivalents. Adjusted Adjusted EBITDA(1) EBITDA is defined as net income…
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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