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Analyzing Southwestern Energy’s 4Q17 Revenue Expectations

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Southwestern Energy’s 4Q17 revenue estimates

For 4Q17, Wall Street analysts expect Southwestern Energy (SWN) to report revenue of ~$803 million.

On a YoY (year-over-year) basis, SWN’s 4Q17 revenue expectation is ~17% higher than its 4Q16 revenue of ~$684 million. Sequentially, Southwestern Energy’s 4Q17 revenue expectation is ~6% higher than its 3Q17 revenue of ~$759 million.

A strong YoY increase in Southwestern Energy’s 4Q17 production and higher realized prices for crude oil (USO), natural gas (UNG), and natural gas liquids are expected to positively impact SWN’s revenue. We’ll study SWN’s production in the next article.

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According to Reuters, in 4Q17, the components of the S&P 500 Index are expected to report blended revenue growth of almost 8% compared to 4Q16. According to Reuters, with a YoY estimated blended revenue rise of ~20% in 4Q17, the energy sector is expected to drive the S&P 500’s revenue growth in the quarter. Excluding the energy sector, blended revenue growth for the S&P 500 is estimated to be ~7%. Thus, SWN’s estimated 4Q17 revenue growth is higher than the SPY’s estimated 4Q17 blended revenue growth.

Southwestern Energy’s 2017 revenue estimates

For 2017, Wall Street analysts expect Southwestern Energy to report revenue of ~$3.3 billion, ~30% higher than its revenue of ~$2.4 billion in 2016. SWN’s peer Occidental Petroleum (OXY) reported 2017 revenue of ~$13.3 billion, ~28% higher than its revenue of ~$10.4 billion in 2016.

Now let’s take a look at SWN’s 4Q17 and 2017 production numbers.

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