Investor Presentation October 2022 NYSE: SWN www.swn.com 1
Cautionary Statements Forward-Looking Statements This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Investor Relations and Section 21E of the Exchange Act…
SWN Value Proposition Today Increasing and Resilient Free Cash Flow Free cash flow expected to grow in 2023+ as hedge position moderates, even with strip pricing in backwardation Capital Allocation Discipline and Shareholder…
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…
Largest Dual Basin Natural Gas Producer Pre-tax PV-10 (B)(2) Inventory Locations Appalachia 80% 20% 17x 6,600 78% Gas Liquids 31.3 Increase Increase Net Acres: 768,000 (1) 2022E Net Production: 2.8 2.9 Bcfe/day 3,700 1.8 YE…
Delivering on Our Plan 3Q 2022 RESULTS 222MM Free Cash Flow 227MM 80MM debt reduction share repurchases 1.4x leverage Upgraded to BB+ by Fitch Optimized future flow assurance and 543MM marketing optionality to LNG Corridor…
Disciplined Capital Allocation Achieved Target Leverage Range Resilient free cash flow Target leverage range 1 generation from enterprise maintenance capital investment 3.0x 2.5x 2.0x 2.0x 1.4x 1.5x 1.0x 0.5x 0.0x Achieved…
Durable Financial Strength Key Financial Objectives Approaching Investment Grade Ratings Reduce debt to target range of 3.5 3.0 Agency Current Rating Outlook Notches to IG Ratings Date billion; maintain 1.5x 1.0x leverage S&P BB+…
Equity Value Disconnect Implied Share Value(1) Proved Reserves PV-10 Net Asset Value (B)(2,3,4) 6.58/share 15.03/share 31.3 16.6B 2.3x (5.8) greater 11.8 PUD (4.9) (4.0) 16.6 7.3B 19.5 PDP Market Cap Net Asset Value…
Capturing Tangible Benefits of Scale Expanded opportunity set Optimized cost structure 15 years of core inventory Improved margins through cost underpinning long-term economies development program Leverage operational efficiency…
Portfolio Optionality Across Deep High Return Inventory Bas Co o t Haynesville iquids 12 Haynesville 35 2 4.7 Bc e 5 ears 4.7 Bc e net production (1) core inventory net production(1) Gas Appalachia Appalachia 1 5 Pre…
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 45% 23 years of core 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…
Haynesville Infrastructure Supporting LNG Demand Basin pipeline capacity to LNG Projected 6 Bcf/d new capacity from corridor expected to increase 6 Haynesville Basin to LNG Corridor Bcf/d(1) by year-end 2024 SWN has reinforced…
Advantaged to Reliably Supply Expanding LNG Corridor Cove Point SWNs 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…
Our Approach to ESG Our approach to ESG aligns with our corporate strategy to deliver lasting shareholder value Long-term GHG emission reduction No routine flaring goal of 50% decrease by 2035, consistent with a path to net zero…
Appendix 20 13
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 22
2022 Guidance As of October 27, 2022 PRODUCTION Q4 TOTAL YEAR Gas Production (Bcf) 368 384 1,510 1,535 Liquids (% of production) 12.0% 12.0% Total (Bcfe) 417 437 1,715 1,745 Total (Bcfe/day) 4.6 4.7 CAPITAL (in millions) Appalachia…
Hedge Summary Natural Gas Bcf, /MMBtu(1) Crude MBbls, /Bbl Total 207 3.04 Total 2022 2022 846 52.68 2.47 x 2.89 317 18 4Q 92 2.03 x 2.48 x 2.88 4Q 1,190 344 39.76 x 50.08 x 56.97 Total Total 504 3.08 Total 2023 2023 1,081…
Hedge Summary Ethane MBbls, /Bbl (/gal) Propane MBbls, /Bbl (/gal) Total Total 2022 2022 1,536 31.22 (0.74) 1,463 11.44 (0.27) 4Q 1,463 4Q 1,613 77 16.80 x 21.00 x 31.92 (0.40 x 0.50 x 0.76) Total Total Total Total 2023 2023…
Hedge Summary 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 4Q 4Q Total Total Total Total 2023 2023 41.24 (0.98) 66.00 (1.57) 347 359 347…
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) 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…
Loading...
