Company report
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21 Pages

Southwestern Energy corporate report

Southwestern Energy corporate report

Report summary

Southwestern is still dealing with the effects of its poorly-timed US$6.1 billion of acquisitions in late-2014. While we thought the strategic rationale of the deals was sound – gaining access to elite rich-gas acreage in the Marcellus – the subsequent collapse in the gas price put the company's balance sheet in a precarious position.

What's included?

This report includes 2 file(s)

  • Southwestern Energy corporate report PDF - 4.24 MB 21 Pages, 8 Tables, 26 Figures
  • Southwestern Energy corporate report.xls XLS - 3.06 MB


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Company report offers thought-provoking insight into corporate financial health, investment strategy and operational outlook supported by our proprietary asset data and energy research experts.

Widely used by both the energy and financial sectors, our report gives you a unique perspective on key strategic and financial challenges, as well as opportunities facing this oil and gas company.

Wood Mackenzie provides an independent evaluation and expert opinion on the operational performance, strategy and future of the world's top oil and gas companies. Our unique, objective analysis helps you understand, validate, compare and challenge market and corporate views so you can assess strategic opportunities.

  • Executive summary
  • Strategy
    • 1. Further deleverage of its balance sheet
      • Possible further divestiture candidates include:
    • 2. Reducing Marcellus breakevens is critical
    • 3. Navigating a challenging takeaway capacity outlook
  • Valuation
  • Financial health
    • Financial health overview
    • Net debt / Liquidity position
    • Hedging
  • Resources, reserves and production
    • Production overview
    • Reserves and resources overview
  • Portfolio summary
  • Economic assumptions

In this report there are 34 tables or charts, including:

  • Executive summary
    • SWOT analysis
  • Strategy
    • Southwestern: net debt evolution since Q3 2014
    • Southwestern: upstream assets by NPV,10
    • North American Well Analysis Tool: Southwestern's well locations in the Marcellus
    • Benchmark: NE Marcellus sub-play breakevens
    • Benchmark: NE Marcellus cash flow outlook
    • Benchmark: Northeast Marcellus breakeven by sub-play by company
    • Southwestern: capacity commitment outlook
  • Valuation
    • Share price performance since June 2014
    • Market premium / discount to WM base case NPV,10
    • Benchmark: NE Marcellus NPV,10 by sub-play
  • Financial health
    • Cash flow breakeven evolution
    • Financial health: Image 2
    • Southwestern: credit facilities and term loans
    • Southwestern: bond maturity schedule
    • Benchmark: net debt and net debt-to-cap
    • Benchmark: impairments since 2014
    • 2017 Hedging exposure of US gas producers
    • Benchmark: long-term hedging positions
  • Resources, reserves and production
    • Southwestern: reported and forecast production
    • Benchmark: WM production forecast
    • Resources, reserves and production: Image 3
    • Southwestern: reserves and resource detail
    • Reported organic reserves replacement
    • Benchmark: WM commercial reserves life
  • Portfolio summary
    • Key assets
    • Exploration acreage
  • Economic assumptions
    • Base price assumptions (nominal terms)
    • Base price assumptions (nominal terms)
    • Base, high, and low Brent (nominal terms)
    • High price assumptions
    • Low price assumptions
    • Value assumptions
    • Foreign exchange rate assumptions
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