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Why Southwestern Energy’s Revenues Grew in 4Q17

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Southwestern Energy’s 4Q17 revenues

For 4Q17, Southwestern Energy (SWN) reported revenues of ~$809 million—higher than Wall Street analysts’ consensus of ~$803 million. For 4Q17, Southwestern Energy reported natural gas (UNG) (UGAZ) (DGAZ) revenues of ~$425 million, natural gas liquids revenues of ~$74 million, crude oil revenues of ~$29 million, and marketing and gas gathering revenues of ~$277 million. So, ~53% of Southwestern Energy’s revenues came from natural gas sales.

Sequentially, Southwestern Energy’s 4Q17 revenues are ~10% higher compared to its revenues of ~$737 million in 3Q17. On a YoY (year-over-year) basis, Southwestern Energy’s 4Q17 revenues are ~18% higher compared to its revenues of ~$684 million in 4Q16.

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Reasons behind the higher revenues in 4Q17

Southwestern Energy’s higher revenues in 4Q17 were due to the steep increase in upstream sales. The upstream sales increased ~26% to ~$528 million in 4Q17 from ~$419 million in 4Q16. The YoY increase in Southwestern Energy’s 4Q17 production combined with higher realized prices for natural gas (UNG), natural gas liquids, and crude oil had a positive impact on Southwestern Energy’s revenues.

Southwestern Energy’s average realized price for natural gas (UNG) increased to $2.12 per Mcf (thousand cubic feet) in 4Q17 from $2.07 per Mcf in 4Q16. Southwestern Energy’s natural gas liquids price increased ~49% to $17.98 per barrel in 4Q17 from $12.08 per barrel in 4Q16.

Southwestern Energy’s 2017 revenues

For fiscal 2017, Southwestern Energy reported revenues of ~$3.2 billion in 2017, which was ~33% higher from ~$2.4 billion in 2016. Range Resources (RRC) reported revenues of ~$2.2 billion in 2017, which was ~29% higher from ~$1.7 billion in 2016.

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