NYSE:SWN

Stock Analysis Report

Southwestern Energy

Executive Summary

Southwestern Energy Company, an independent energy company, engages in the exploration, development, and production of natural gas and oil in the United States.

Snowflake

Fundamentals

Outstanding track record and fair value.

Risks

  • Southwestern Energy has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Southwestern Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-6.1%

NYSE:SWN

-2.0%

US Oil and Gas

-1.6%

US Market


1 Year Return

-70.1%

NYSE:SWN

-26.0%

US Oil and Gas

-3.0%

US Market

SWN underperformed the Oil and Gas industry which returned -26% over the past year.

SWN underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

SWNIndustryMarket
7 Day-6.1%-2.0%-1.6%
30 Day-22.1%-10.8%-5.7%
90 Day-55.4%-10.6%0.2%
1 Year-70.1%-70.1%-23.3%-26.0%-0.8%-3.0%
3 Year-88.2%-88.2%-9.5%-17.6%38.1%29.1%
5 Year-95.9%-95.9%-34.8%-43.8%50.8%34.1%

Price Volatility Vs. Market

How volatile is Southwestern Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Southwestern Energy undervalued based on future cash flows and its price relative to the stock market?

0.93x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Southwestern Energy to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Southwestern Energy to establish if it is available at substantial discount.


Price Based on Earnings

Southwestern Energy is good value based on earnings compared to the US Oil and Gas industry average.

Southwestern Energy is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Southwestern Energy earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Southwestern Energy is good value based on assets compared to the US Oil and Gas industry average.


Next Steps

Future Growth

How is Southwestern Energy expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

-45.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Southwestern Energy's revenue is expected to grow by 0.9% yearly, however this is not considered high growth (20% yearly).

Southwestern Energy's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Southwestern Energy's revenue growth is positive but not above the United States of America market average.

Southwestern Energy's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Southwestern Energy's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Southwestern Energy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Southwestern Energy performed over the past 5 years?

21.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Southwestern Energy has delivered over 20% year on year earnings growth in the past 5 years.

Southwestern Energy's 1-year earnings growth exceeds its 5-year average (78.1% vs 21.8%)

Southwestern Energy's earnings growth has exceeded the US Oil and Gas industry average in the past year (78.1% vs 22.6%).


Return on Equity

Southwestern Energy has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Southwestern Energy used its assets more efficiently than the US Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Southwestern Energy has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Southwestern Energy's financial position?


Financial Position Analysis

Southwestern Energy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Southwestern Energy's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Southwestern Energy's level of debt (75.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (45.6% vs 75.3% today).

Debt is well covered by operating cash flow (47.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

What is Southwestern Energy's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Southwestern Energy's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Southwestern Energy's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Southwestern Energy has not reported any payouts.

Unable to verify if Southwestern Energy's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Southwestern Energy has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Southwestern Energy's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Southwestern Energy's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Bill Way (60yo)

3.6yrs

Tenure

US$8,420,470

Compensation

Mr. William J. Way, also known as Bill, has been the Chief Executive Officer of Southwestern Energy Company since January 6, 2016 and has been its President since December 4, 2014. Mr. Way served as the Ch ...


CEO Compensation Analysis

Bill's remuneration is higher than average for companies of similar size in United States of America.

Bill's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.0yrs

Average Tenure

55yo

Average Age

The tenure for the Southwestern Energy management team is about average.


Board Age and Tenure

2.9yrs

Average Tenure

63yo

Average Age

The average tenure for the Southwestern Energy board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Southwestern Energy individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$47,50009 Aug 19
Julian Bott
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares25,000
Max PriceUS$1.90
BuyUS$191,00009 Aug 19
William Way
EntityIndividual
Role
Chief Executive Officer
President
Shares100,000
Max PriceUS$1.91
SellUS$63,79808 Nov 18
Jennifer McCauley
EntityIndividual
Role
Chief Administrative Officer
Senior Vice President of Administration
Shares10,850
Max PriceUS$5.88

Ownership Breakdown


Management Team

  • John Ale (64yo)

    Senior VP

    • Tenure: 5.8yrs
    • Compensation: US$2.61m
  • James Cecil (52yo)

    Executive Vice President of Corporate Development

    • Tenure: 2.0yrs
    • Compensation: US$4.57m
  • Clay Carrell (54yo)

    Executive VP & COO

    • Tenure: 1.7yrs
    • Compensation: US$4.35m
  • Jennifer McCauley (55yo)

    Senior Vice President of Administration

    • Tenure: 3.3yrs
  • Jennifer Stewart (55yo)

    Senior Vice President of Government & Regulatory Affairs

    • Tenure: 0.0yrs
    • Compensation: US$1.26m
  • Bill Way (60yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$8.42m
  • Julian Bott (56yo)

    Executive VP & CFO

    • Tenure: 1.5yrs
    • Compensation: US$3.44m
  • R. Kurtz (48yo)

    Vice President of Marketing & Transportation

    • Tenure: 2.1yrs
  • C. Penchas

    Vice President of Investor Relations

    • Tenure: 1.5yrs
  • Ron Hyden

    Vice President of Technology

    • Tenure: 0.0yrs

Board Members

  • Jon Marshall (67yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$275.00k
  • Greg Kerley (63yo)

    Independent Director

    • Tenure: 9.0yrs
    • Compensation: US$299.41k
  • John Gass (67yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$311.92k
  • Patrick Prevost (64yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$275.00k
  • Denis Walsh (58yo)

    Independent Director

    • Tenure: 0.2yrs
  • Anne Taylor (63yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$141.27k
  • Cathy Kehr (56yo)

    Chairman of the Board

    • Tenure: 3.3yrs
    • Compensation: US$414.20k
  • Bill Way (60yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$8.42m

Company Information

Southwestern Energy Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Southwestern Energy Company
  • Ticker: SWN
  • Exchange: NYSE
  • Founded: 1929
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$912.177m
  • Shares outstanding: 539.75m
  • Website: https://www.swn.com

Number of Employees


Location

  • Southwestern Energy Company
  • 10000 Energy Drive
  • Spring
  • Texas
  • 77389
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SWNNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1980
SW5DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980

Biography

Southwestern Energy Company, an independent energy company, engages in the exploration, development, and production of natural gas and oil in the United States. It operates through two segments, Exploratio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 23:42
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.