Investor Presentation April 2023 NYSE: SWN www.swn.com 1
Shareholder Value Proposition Constructive Long-term Macro Outlook Well positioned to supply growing natural gas demand, particularly along Gulf Coast and LNG corridor 15 Years of Core Inventory in Two Premier Natural Gas…
Our Strategy Resilient free cash flow generation through responsible development of our core positions in the two premier U.S. natural gas basins Enhance corporate and shareholder economic returns CREATE Deliver sustainable free cash…
Largest Dual Basin Natural Gas Producer Appalachia 80% 20% Net Acres: 766,000 Gas Liquids Natural Gas Peer 2023E Net Production (Bcfe/d)(2,3) 2023E Net Production: 2.8 Bcfe/day(1) 5.3 Companies with multi-basin assets 4.6 3.8 3.7…
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 1.3x 1.2x 1.5x 1.0x 0.5x 0.0x YE 2022…
Durable Financial Strength Key Financial Objectives Approaching Investment Grade Ratings Agency Current Rating Outlook Notches to IG Ratings Date Reduce debt to target range of 3.5 3.0 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…
Deep Core Inventory Set Across Both Basins Total Company Inventory Appalachia Inventory Detail Haynesville Inventory Detail Ample core inventory supplemented by additional resource opportunities 11
Appalachia Core Dry Gas and Liquids Position Operational Plan(1) 2023E Rigs 3 Frac fleets 2 Wells drilled 53 58 % Marcellus liquids rich 65% Pennsylvania Wells completed 64 69 % Marcellus liquids rich 65% Wells to sales 68 73…
SWN Delivers Leading Haynesville Well Performance Operator Well Performance (Mcf/ft)(1) 2019 2022 Wells to Sales 700 2019 2020 2021 2022 6 Mo Cumulative Gas (Mcf/ft) 600 SWN consistently improving 500 well performance 400 300…
Core Stacked Haynesville and Middle Bossier Opportunity 2022 Wells to Sales Desoto East Well Performance (Mcf/ft)(1) SWN acreage 22 Haynesville 21 Haynesville Haynesville Core 22 Middle Bossier 21 Middle Bossier North Middle Bossier…
Haynesville Operational Improvements Drilling Footage Per Day (ft/day) Drilling Days on Location (days)(2) 600 90 10% 10% 500 2023E 75 2023E Increase(1) Decrease(1) 400 60 300 45 200 30 100 15 - - 2021 2022 Q1 2023 2023E…
Responsibly Sourced Gas to Premium Markets 2023E Natural Gas Differential to NYMEX Canada: 1% Transportation (1) Location (2) Total Average Average Rate Average Basis Year Differential per Mcf per Mcf per Mcf Greater Appalachia…
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…
Our Approach to ESG Our approach to ESG aligns with our corporate strategy to deliver lasting shareholder value Long-term Scope 1 GHG emission No routine flaring reduction goal of 50% decrease by 2035, consistent with a path to…
Appendix 21
2023 Guidance As of April 27, 2023 PRODUCTION Q2 TOTAL YEAR Gas Production (Bcf) 355 365 1,430 1,500 Liquids (% of production) 13.0% 13.0% Total (Bcfe) 408 420 1,650 1,725 CAPITAL (in millions) Appalachia 40 45% Haynesville 55 60%…
ESG is a Core Value 23
U.S. Positioned to Balance Global Gas Markets More than 20 Bcf/d global LNG Global LNG Supply and Demand demand growth expected through Growth From 2022 to 2030(2) 2030 25 Driven by Asia and Europe U.S. best positioned to balance…
U.S. Projects In Progress to Fill Growing LNG Demand LNG exports projected to further increase demand Currently 13 Bcf/d of capacity in-service Projected increase of 9 Bcf/d for projects under construction; over 17 Bcf/d of permitted…
FERC Approved LNG Projects Awaiting FID 17 Bcf/d of Potential Next Wave Projects FERC-Approved, Pre-FID US LNG Projects Location FERC-Approved Capacity (Bcf/d) Cameron T4 / T5 Hackberry, LA 1.4 Freeport T4 Freeport, TX 0.7 Magnolia…
Hedge Summary As of March 31, 2023 Natural Gas Hedges Swaps Two-way Costless Collars Three-way Costless Collars Sold Calls Volume Price Volume Purchased Put Sold Calls Volume Sold Puts Purchased Put Sold Calls Volume Sold Calls (Bcf)…
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…
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