Investor Presentation February 2023 NYSE: SWN www.swn.com 1
Cautionary Statements Forward-Looking Statements Investor Relations This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act…
SWN Value Proposition Resilient Free Cash Flow at Attractive Valuation 850MM of free cash flow in 2022; 26B pre-tax PV-10 reserves value(1) more than two times current enterprise value Disciplined Capital Allocation…
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) Free Cash Flow (MM) Appalachia 80% 20% 2x 55% Gas Liquids 848 Net Acres: 766,000 46.4 Increase Increase 2023E Net Production: 2.8 Bcfe/day(1) 547 22.4 YE YE FY FY…
Delivering on Our Plan 2022 RESULTS 848MM Free Cash Flow 1B 125MM debt reduction share repurchases SEC PV-10 of 37.6B and 1.3x leverage at 12/31/22 pre-tax PV-10 of 46.4B Rated 1-notch below investment grade Delivered…
Disciplined Capital Allocation Achieved Target Leverage Range Resilient free cash flow 1 3.0x Target leverage range generation from enterprise 2.5x maintenance capital investment 2.0x 2.0x 1.3x 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+…
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 4.6 Bcfe/d 15 Years 4.6 Bcfe/d net production(1) core inventory net production(1) Basin, commodity and end market diversification Sales reduce risk and strengthen…
Appalachia Core Dry Gas and Liquids Position Enhancing Optionality and Flexibility Inventory Core locations 1,150 Total locations 4,800 Operational Plan(1) 2023E Rigs 3 Frac fleet 2 Wells drilled 53 58 % Marcellus liquids…
Haynesville Core Stacked Pay Position Targeting Further Efficiencies in Second Year of Operations SWN acreage Inventory Haynesville Core Core locations 900 Middle Bossier Core Total locations 1,550 Operational Plan(1) 2023E…
Responsibly Sourced Gas to Premium Markets 2023E Differential to NYMEX Canada: 1% Transportation (1) Location (2) Total Average Rate Average Basis Average Differential Year per Mcf per Mcf per Mcf Appalachia (0.42) (0.40)…
Advantaged to Reliably Supply Expanding LNG Corridor Cove Point SWNs differentiated positioning to supply growing LNG demand Proximity and access largest Haynesville producer with firm transport to LNG corridor Scale 3 Bcf/d gross gas…
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 18 13
2023 Guidance As of February 23, 2023 PRODUCTION Q1 TOTAL YEAR Gas Production (Bcf) 344 354 1,430 1,500 Liquids (% of production) 13.5% 13.0% Total (Bcfe) 398 410 1,650 1,725 CAPITAL (in millions) Appalachia 40 45% Haynesville 55 60%…
ESG is a Core Value 20
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 13 Bcf/d of capacity is currently in-service over 10 Bcf per day by 2025…
Hedge Summary Natural Gas Bcf, /MMBtu(1) Crude MBbls, /Bbl Total 126 3.07 Total 252 59.00 2023 2023 1Q 239 1Q 638 44 3.19 x 3.87 342 33.65 x 45.06 x 56.25 69 2.13 x 2.66 x 3.20 44 73.50 Total 126 3.07 Total Total 361 63.94 2023…
Hedge Summary Ethane MBbls, /Bbl (/gal) Propane MBbls, /Bbl (/gal) Total Total 2023 2023 1Q 428 1Q 753 428 12.23 (0.29) 753 35.38 (0.84) Total Total 2023 2023 2Q 2,111 2Q 1,399 11.33 (0.27) 1,399 36.27 (0.86) 2,111 Total…
Hedge Summary Butane MBbls, /Bbl (/gal) Natural Gasoline MBbls, /Bbl (/gal) Total Total 2023 2023 1Q 85 1Q 123 85 41.24 (0.98) 71.77 (1.71) 123 Total Total Total 2023 2023 2Q 196 63.74 (1.52) 2Q 169 196 40.96 (0.98)…
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 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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