Must-know: Investing in Southwestern Energy Company

Must-know: Investing in Southwestern Energy Company (Part 1 of 8)

Opportunity: Southwestern Energy’s 2014 capex plans and guidance

Southwestern Energy’s 2014 capex plans and guidance

On December 10, 2014, Southwestern Energy announced its 2014 capex plans and guidance. SWN noted that for 2014, assuming natural gas prices of $3.75 per mcf at Henry Hub, it estimates net income of $635 million to $645 million and net cash from operating activities (excluding changes in working capital) of $1,920 to $1,930 million. SWN forecasts 2014 EBITDA of $1,985 to $1,995 million. Southwestern also provided guidance for sensitivity to natural gas prices. Over 99% of SWN’s production is currently natural gas, so the company is very levered to changes in the commodity’s price.

SW capexEnlarge Graph

Capex

In 2014, SWN plans to spend $2,325 million—a 3% increase over its capex spending of $2,250 billion in 2013.

2014.01.21 - Southwestern Energy Capex PlansEnlarge Graph

SW capex 2Enlarge Graph

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