Southwestern Energy Reported Higher Production in 4Q17

For 4Q17, Southwestern Energy (SWN) reported production of 239 Bcfe (billion cubic feet equivalent). Southwestern Energy expected to have sequential production growth every quarter in fiscal 2017. Sequentially, Southwestern Energy’s 4Q17 production is ~3% higher compared to its production of 232 Bcfe in 3Q17. On a year-over-year basis, Southwestern Energy’s 4Q17 production is ~18% higher compared to its 4Q16 production of 202 Bcfe.

Marathon Oil (MRO) reported total production of 416 Mboepd (thousand barrels of oil equivalent per day) in 4Q17, which is ~5% higher compared to its 4Q16 total production of 396 Mboepd.

The Fayetteville Shale contributed 75 Bcfe (or ~31%), Northeast Appalachia contributed 110 Bcfe (or ~46%), and Southwest Appalachia contributed 52 Bcfe (or ~22%) to Southwestern Energy’s 4Q17 production—compared to 86 Bcfe from the Fayetteville Shale, 82 Bcfe from Northeast Appalachia, and 33 Bcfe from Southwest Appalachia in 4Q16.

For 2017, Southwestern Energy reported production of 897 Bcfe, which is ~3% higher compared to its 2016 production of 875 Bcfe. Southwestern Energy’s 2017 production was at the lower end of its own production base case scenario. Southwestern Energy guided for a compounded annual growth rate of 3%–5% with $1 billion in capital spending.

For 2018, Southwestern Energy expects production to be 930–965 Bcfe—a mid-point increase of ~6% compared to 2017. For 1Q18, Southwestern Energy expects production of 223–229 Bcfe. For 2018, ConocoPhillips (COP) expects its fiscal production to be 1,195–1,235 Mboepd, which could result in ~5% growth compared to the disposition-adjusted fiscal 2017 production.