uploads///SWN Q Pre Revenue

Analyzing Southwestern Energy’s 3Q17 Revenue Expectations

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Oct. 9 2017, Updated 8:13 a.m. ET

Revenue estimates

For 3Q17, Wall Street analysts expect Southwestern Energy (SWN) to report revenues of ~$759 million. On a year-over-year basis, SWN’s 3Q17 revenue expectations are ~17% higher than its 3Q16 revenues of ~$651 million. 

Sequentially, Southwestern Energy’s 3Q17 revenues expectations are ~6% lower when compared with its 2Q17 revenues of ~$811 million.

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SWN’s 2Q17 revenue performance

In its most recent earnings release in August 2017, SWN reported revenues of ~$811 million, higher than the Wall Street analyst consensus for revenues of ~$806 million. For 2Q17, SWN reported natural gas revenues of ~$471 million, natural gas liquids revenues of ~$37 million, and crude oil revenues of ~$23 million. 

SWN also reported marketing revenues of ~$250 million and natural gas gathering revenues of ~$30 million. This means that almost 58% of SWN’s revenues came from natural gas sales.

Despite the year-over-year decrease in Southwestern Energy’s 2Q17 production, much higher realized prices for natural gas (BOIL)(UGAZ)(DGAZ), natural gas liquids, and crude oil (SCO) (USL) impacted SWN’s revenues positively. 

Southwestern Energy’s natural gas average realized price increased to $2.35 per MMBtu (million British thermal units) in 2Q17 from $1.21 per MMBtu in 2Q16. We will study SWN’s 3Q17 production estimates in the next part.

SWN’s upstream revenue mix

In 2Q17 Southwestern Energy’s (SWN) operating revenues from natural gas (UNG), natural gas liquids, and crude oil (USO) sales totaled ~$531 million, an increase of ~82% when compared with 2Q16. Out of these revenues, ~89% (or ~$471 million) of upstream revenues came from natural gas sales.

Also, ~7% (or ~$37 million) of upstream revenues came from natural gas liquids sales, and only ~4% (or ~$23 million) of upstream revenues came from crude oil sales.

Peers

Devon Energy (DVN) reported revenues of ~$3.2 billion in the quarter, lower than the Wall Street analyst consensus for its revenues of ~$3.3 billion. On a year-over-year basis, DVN’s 2Q17 revenues are ~27% higher when compared with its 2Q16 revenues of ~$2.5 billion.

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