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March 2015 Update – Southwestern Energy Co.

Southwestern Energy Co. · Mar 3, 2015 · 33 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. March 2015 Update – Southwestern Energy Co. – slide 1
    March 2015 Update NYSE: SWN
  2. March 2015 Update – Southwestern Energy Co. – slide 2
    Southwestern Energy Company General Information Southwestern Energy Company is an independent natural gas company whose wholly-owned subsidiaries are engaged in natural gas and oil exploration and production and natural gas gathering…
  3. March 2015 Update – Southwestern Energy Co. – slide 3
    Southwestern Energy Consistently Creates Value Strategy built on the formula The Right People doing the Right Things, wisely investing the cash flow from the underlying Assets will create Value + 4th largest producer of natural gas…
  4. March 2015 Update – Southwestern Energy Co. – slide 4
    North American Areas of Operation RESERVES & PRODUCTION E 2014 Reserves: 10,747 Bcfe NB 2014 Production: 768 Bcfe 2015 Estimated Production: 940-955 Bcfe NORTHEAST APPALACHIA A 2014 Reserves: 3,192 Bcf (30%) 2014 Production: 254 Bcf…
  5. March 2015 Update – Southwestern Energy Co. – slide 5
    Proven Track Record (1) Production Adjusted EBITDA (Bcfe) (MM) 2,320 768 1,997 657 1,774 565 1,602 1,638 500 1,362 1,383 405 300 675 195 113 07 08 09 10 11 12 13 14 07 08 09 10 11 12 13 14 Price(2) 6.80 7.52 5.35 4.62…
  6. March 2015 Update – Southwestern Energy Co. – slide 6
    Continuous Improvement Notes: Finding and development costs exclude revisions and capital investments in our sand facility, drilling rig related and ancillary equipment. Fayetteville Shale Days to Drill Lateral Well Cost F&D Cost…
  7. March 2015 Update – Southwestern Energy Co. – slide 7
    Enhanced Position in Core Areas of Premier Play SWN acreage shown in yellow SWN held approximately 413,000 net acres in West Virginia and southwest Pennsylvania as of December 31, 2014 In January 2015, additional transaction…
  8. March 2015 Update – Southwestern Energy Co. – slide 8
    Well-Positioned in Rapidly Developing Play Acquired acreage is low-risk opportunity in the heart of world-class play Lateral 2 IP IP30 % Liquids 1 ID Operator Well Name Length (Mmcfe/d) (Mmcfe/d) at IP30 (feet) 3 MARCELLUS 1 1…
  9. March 2015 Update – Southwestern Energy Co. – slide 9
    Northeast Appalachia Millennium WPX Acquisition 46,700 WPXNet Stagecoach Acres Acquisition 46,700 Net Acres Laser New York Pennsylvania Bluestone SWN Pipelines We held approximately 266,000 net acres in…
  10. March 2015 Update – Southwestern Energy Co. – slide 10
    Fayetteville Shale Focus Area Notes: Data as of December 31, 2014. Rates are AOGC Form 13 and Form 3 test rates. SWN holds approx. 888,000 net acres in the Fayetteville Shale play. SWN discovered the Fayetteville Shale and has…
  11. March 2015 Update – Southwestern Energy Co. – slide 11
    Capital Investments Exploration BY SPENDING TYPE in Millions and Other 6% 2,440 2,500 Fayetteville 2,207 2,235 SW 30% 2,120 2,081 Appalachia 2,015 27% 2,000 1,500 E&P BY DIVISION 1,000 2015 500 0 2010 2011 2012…
  12. March 2015 Update – Southwestern Energy Co. – slide 12
    Our Path Forward (1) 2014 2015 Guidance Actual NYMEX Price Assumption 4.41 Gas 3.00 Gas 3.25 Gas 3.25 Gas 92.91 Oil 60.00 Oil 50.00 Oil 60.00 Oil Adj. Net Income(2) 801 MM 140-160 MM 215-235 MM 240-260 MM Adj. EBITDA(2)(5)…
  13. March 2015 Update – Southwestern Energy Co. – slide 13
    The Road to Invest in the Highest PVI Projects Maintain Strong Balance Sheet Deliver the Numbers Curiosity to Learning to Innovation to 13
  14. March 2015 Update – Southwestern Energy Co. – slide 14
    About Southwestern US Lower 48 Gas Production Sorted by 4Q14 (MMcf/d) 4,000 3,500 SWN is 4th overall as of 4Q14 3,000 2,500 4Q14 2,000 4Q13 4Q12 1,500 4Q11 4Q10 1,000 4Q09 4Q08 500 - XOM MRO AR QEP OXY…
  15. March 2015 Update – Southwestern Energy Co. – slide 15
    2015 Gas Hedges in Place Bcf 150 Fixed Price 140 Total Volumes Hedged 240 Bcf % of Estimated Gas Production 25% 130 Average Price per MMBtu 4.40 120 110 100 90 80 70 60 50 40 30 4.40 4.40 4.40 4.40 20 10 0 1Q 2Q 3Q…
  16. March 2015 Update – Southwestern Energy Co. – slide 16
    Southwesterns Appalachia Takeaway 1.8 1.6 Transco ET Rover 1.4 Constitution 1.2 Estimated SWN Columbia Gas Marketed Volumes at Jan 1, 2015 1.0 Bcf/d Tennessee 0.8 0.6 Millennium 0.4 0.2 Firm Sales…
  17. March 2015 Update – Southwestern Energy Co. – slide 17
    Southwest Appalachia Type Curves Marcellus Dry Gas Region Utica EUR: 100% Gas EUR: 100% Gas 4 BCFE Type Curve (Based (Based on onLL LL==7500 7500 ft) ft) 7 BCFE Type Curve (Based on LL (Based on LL == 7500 ft) 7500 ft) 10 BCFE…
  18. March 2015 Update – Southwestern Energy Co. – slide 18
    Northeast Appalachia Gross Production Proven History of Effectively Ramping Activity Quickly 1,100 Average Average 30th-Day Completed Average RE- Completed Gross operated production of approx. 1,000 Time Frame Avg Rate RE 1,018…
  19. March 2015 Update – Southwestern Energy Co. – slide 19
    Northeast Appalachia Well Performance by County 8,000 7,000 6,000 Daily Rate, Mcf/d 5,000 4,000 3,000 2,000 1,000 0 0 365 730 1095 1460 Note: Excludes downtime Days of Production Bradford County…
  20. March 2015 Update – Southwestern Energy Co. – slide 20
    Fayetteville Shale Horizontal Well Performance Wells Average 30th-Day 60th-Day Average SWN Gross Operated Production Time Frame Placed on IP Rate Avg Rate Avg Rate Lateral 2,200 Production (Mcf/d) ( of wells) ( of wells) Length Gross…
  21. March 2015 Update – Southwestern Energy Co. – slide 21
    Fayetteville Shale Horizontal Well Performance Mcf/d 5,000 5,000 ft Well 913 886 827 764 682 631 584 469 534 504 417 358 300 252 189 131 Count 4,500 4,000 ft 2048 2005 1908 1783 1661 1574 1489 1385 1301 1210 1107 987 862 733 598…
  22. March 2015 Update – Southwestern Energy Co. – slide 22
    Midstream GATHERING SYSTEMS NORTHEAST APPALACHIA GATHERING Gathered Volumes at Dec. 31, 2014 (MMcf/d) 443 Gathering Lines (Miles) 105 Firm Transportation Capacity (Bcf/d) 1.3 PA Compression Equipment (Horsepower) 53,035 2014…
  23. March 2015 Update – Southwestern Energy Co. – slide 23
    Exploration Sand Wash Basin Niobrara N 0 4.5 9 Miles Dry Gas Condensate & Volatile Oil Diamond T Sheep 7-92 1-26 North Hayden 1-26 Welker 42-11 Welker 6-92 1-2H11 Dill Gulch 1-22 Black Oil Proven Hydrocarbon…
  24. March 2015 Update – Southwestern Energy Co. – slide 24
    Brown Dense Exploration Project Fayetteville Little River Shale Hempstead Oil Field Arkoma Nevada Camden -4,00 0 Basin -5,00 Gas Field Drew 0 Calhoun Bowie Ouachita SWN Drilled 1 Arkansas Bradley SWN 2014 Plan Texarkana Miller…
  25. March 2015 Update – Southwestern Energy Co. – slide 25
    Drilling & Completion Major Cost Categories Average Fayetteville Shale Well Cost Estimate Major Cost Categories Fracture Stimulation Water Treatment/Dispo sal Rig OCTG D&C Fluids Fracture Stimulation Directional Drilling…
  26. March 2015 Update – Southwestern Energy Co. – slide 26
    U.S. Gas Consumption and Sources Bcf 30,000 25,000 20,000 15,000 U.S. gas production and consumption rising in recent years. 10,000 5,000 0 1975 1980 1985 1990 1995 2000 2005 2010 U.S. Gas U.S. Dry Gas Net…
  27. March 2015 Update – Southwestern Energy Co. – slide 27
    U.S. Electricity Generation Electricity Generation by Energy Source Total 4,085 Billion KWh (Nov 2013 Oct 2014). 7% 1% 6% Coal 39% Natural Gas 20% Nuclear Hydroelectric Renewables1 Other 2 27% 1. Geothermal, solar,…
  28. March 2015 Update – Southwestern Energy Co. – slide 28
    U.S. Natural Gas Supply and Demand 12 Month Rolling Average Source: EIA 29
  29. March 2015 Update – Southwestern Energy Co. – slide 29
    U.S. Gas Drilling and Prices Gas Rigs Gas Price Drilling /MMBtu 2,000 16.00 1,500 12.00 1,000 8.00 500 4.00 Gas Rigs Gas Price 0 0.00 Source: Baker Hughes, Bloomberg 30
  30. March 2015 Update – Southwestern Energy Co. – slide 30
    Oil and Gas Price Comparison /Bbl /MMBtu 150 15 Henry Hub WTI Crude Natural Gas (left scale) 120 (right scale) 12 90 9 60 6 30 3 0 0 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Source:…
  31. March 2015 Update – Southwestern Energy Co. – slide 31
    Financial & Operational Summary Year Ended December 31, 2014 2013 2012 ( in millions, except per share and unit amounts) Revenues 4,038 3,371 2,730 (1) Adjusted EBITDA 2,320 1,998 1,638 Adjusted Net Income(2) 801 704 487 Net…
  32. March 2015 Update – Southwestern Energy Co. – slide 32
    Explanation and Reconciliation of Non-GAAP Financial Measures: Net Cash Flow We report our financial results in accordance with accounting principles generally accepted in the United States of America (GAAP). However, management…
  33. March 2015 Update – Southwestern Energy Co. – slide 33
    Explanation and Reconciliation of Non-GAAP Financial Measures: Adjusted Net Income Additional non-GAAP financial measures we may present from time to time are adjusted net income and adjusted diluted earnings per share attributable to…

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