Southwestern showed signs of turning the corner in Q4. It grew production 18% year-on-year – finally getting back to 2015 levels – and unveiled impressive well improvements in Appalachia. The company's wells in the Northeast continue to get bigger, as both sand loading and stage density has grown significantly from 2016 levels. Laterals are up by more than 40% in the southwest Marcellus. Management spoke at length of the merits of the Fayetteville (and underlying Moorfield Shale), which it is actively marketing. It estimated a PDP value of "a little over" US$2 billion for the position, in line with our valuation.