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SWN

Southwestern Energy NYSE:SWN Stock Report

Last Price

US$7.59

Market Cap

US$8.5b

7D

1.3%

1Y

91.2%

Updated

18 Aug, 2022

Data

Company Financials +
SWN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance0/6
Financial Health2/6
Dividends0/6

SWN Stock Overview

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

Southwestern Energy Company Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Southwestern Energy
Historical stock prices
Current Share PriceUS$7.59
52 Week HighUS$9.87
52 Week LowUS$3.81
Beta1.24
1 Month Change18.41%
3 Month Change7.05%
1 Year Change91.18%
3 Year Change314.75%
5 Year Change37.50%
Change since IPO464.84%

Recent News & Updates

Aug 11
Analysts Just Published A Bright New Outlook For Southwestern Energy Company's (NYSE:SWN)

Analysts Just Published A Bright New Outlook For Southwestern Energy Company's (NYSE:SWN)

Southwestern Energy Company ( NYSE:SWN ) shareholders will have a reason to smile today, with the analysts making...

Aug 11

Southwestern Energy Company Poised To Outperform On Expected Higher Oil And Gas Prices

In The Energy Sector, Southwestern Energy Company Appears to Have Significant Growth Potential. The US Oil and Gas Company Has Highly Profitable Assets, while Oil and Natural Gas Prices will Remain Supportive. The Stock Price, which Seems Affordable Compared to Recent Performance, Could Outperform in the Coming Weeks. In the energy sector, Southwestern Energy Company (SWN) appears to have significant growth potential thanks to a portfolio of highly profitable assets that can provide the cash to execute projects for many years ahead of fossil fuels production, while reducing debt reliance. Essentially, the investor should monitor these management aspects, in addition to the company's program of share buybacks, as these are the future developments that will affect the share price. Of course, a favorable environment for commodity prices will greatly assist the company in pursuing its growth goals and contribute to a greater chance of a stock price rising to new heights. Favorable environment for commodity prices International geopolitical turmoil, with the war in Ukraine at its heart, continues to put tremendous pressure on commodity prices, particularly oil and natural gas. The market is desperate for more oil as supply is insufficient, even after OPEC's decision last week to pump an additional 100,000 barrels starting in September. Natural gas prices also remain under strong upward pressure due to supply concerns after Russia cut gas shipments to European countries in response to US-led Western countries' sanctions over the war in Ukraine. Based on the factors just mentioned, analysts expect sharp increases in oil and natural gas prices from the current levels, as the below table illustrates. Price forecasts are from tradingeconomics.com. Contract Future Price at the time of this writing Expected price in a year Expected positive price change West Texas Intermediate ((WTI)) crude oil due September 2022 $90.60 per barrel (/bbl) ≈$103/bbl ≈13.6% Brent oil futures due October 2022 $96.45/bbl ≈$110/bbl ≈13.6% Natural gas futures due September 2022 (NYMEX) $7,828 per metric million British Thermal Unit (/MMBtu) ≈$10.24/MMBtu ≈30.8% With prices of these commodities rising rapidly, Southwestern Energy Company appears well positioned to benefit from the expected tailwinds of the next oil and natural gas bull market. What does Southwestern Energy Company do? Headquartered in Spring, Texas, Southwestern Energy Company is a leading US producer and marketer of natural gas, oil and liquefied natural gases ((NGLS)) through the development of large fossil fuel deposits in a highly productive area of shale gas basins in the United States. These unconventional natural gas and oil reservoirs are located on a net area of over 768,000 acres in the Appalachian Mountains of Pennsylvania, West Virginia, Ohio, and Louisiana. As of December 31, 2021, Southwestern Energy Company was operating 1,527 wells and had approximately 21.15 trillion cubic feet of natural gas equivalent stored in proven natural gas, oil and NGL reserves. It also deals with the marketing and transportation of these goods. High Return Operations: A look at relevant results for the second quarter and first half of 2022 For the second quarter of 2022, Southwestern Energy’s Adjusted net income grew 185.3% year over year to $368 million, from $129 million in the same quarter of 2021. In other words, the company saw adjusted earnings per share ((EPS)) up 73.7% year over year to $0.33 from $0.19 a year ago. Southwestern Energy outperformed analysts by $0.03 on average. Item Q2 2022 Q2 2021 YOY Adjusted net income $368 million $129 million ≈+185.3% Adjusted EPS $0.33 $0.19 ≈+73.7% Revenue $4.14 billion $1.05 billion ≈+294.3% Adjusted EBITDA $822 million $300 million ≈+174% Revenue came in at $4.14 billion, up more than 294% year over year, beating the average analyst forecast by $2.27 billion. Adjusted EBITDA shot up 174% to $822 million in the second quarter of 2022, from $300 million in the second quarter of 2021. As a result, Southwestern Energy Company, which benefited from higher oil and natural gas prices while running strong operations, also reported an adjusted EBITDA margin of 20%. As higher commodity prices positively impact Southwestern Energy's top and bottom lines over a longer period than just the most recent quarter, adjusted EBITDA for the first half of 2022 was $1.73 billion (up 57.7% sequentially), while total revenue was $7.08 billion (up 55.8% sequentially). Item H1 2022 H2 2021 Positive Change Adjusted EBITDA $1.73 billion Nearly $1.1 billion ≈57.7% Revenue $7.08 billion $4.55 billion ≈55.8% Adjusted EBITDA margin 24.44% 24.11% ≈33 bps up These two items led to an adjusted EBITDA margin of 24.44% in the first half of 2022, an improvement of 33 basis points (bps) from 24.11% in the second half of 2021. These numbers show that the company's asset portfolio has responded very well to the increase in weighted average gross price per thousand cubic feet equivalent (Mcfe) due to the increase in commodity prices. The NYMEX rose 153% year on year, while the WTI rose year on year by 64%. The company's net production in the quarter was 438 billion cubic feet equivalent (Bcfe), or 4.8 Bcfe per day, up 58.7% year over year. The Balance Sheet Net cash flow, which grew 2.8x year over year to $754 million in the second quarter of 2022 helped the company shrink another portion of its balance sheet. The cash flow growth was accompanied by a further reduction of the revolving credit facility and the allocation of $45 million to repurchase senior corporate bonds with maturities in 2027 and 2028. The performance has been recognized by rating agencies, with Moody's upgrading Southwestern Energy Company's rating to Ba1 as a long-term debt issuer in May 2022. Now the company is slightly below the investment-grade rating of Moody's and S&P. As of June 30, 2022, Southwestern Energy's balance sheet was burdened with total debt of nearly $5.1 billion, while the ratio of net debt to adjusted 12-month EBITDA, a measure of financial leverage, was 1.6 times, which is an improvement from 1.7x in the previous quarter. Item As of Q2 2022 As of Q1 2022 Cash on hand $50 million $21 million Total debt $5.067 billion $4.932 billion Adjusted ttm EBITDA $3.225 billion $2.940 billion Net debt to adjusted EBITDA ≈ 1.6 times ≈ 1.7 times While the company must maintain its share repurchase program (up to $1 billion through December 2023), further reduce debt and support investments, its current financial position should allow the company to easily meet its next production targets. The company calls for higher production in Q3 and the full year of 2022 Looking ahead to the third quarter of 2022, Southwestern Energy is targeting total production of between 429 Bcfe and 444 Bcfe, while looking ahead to the full year, the company expects total production to be between 1,715 Bcfe and 1,745 Bcfe.

Shareholder Returns

SWNUS Oil and GasUS Market
7D1.3%2.3%1.4%
1Y91.2%73.4%-8.4%

Return vs Industry: SWN exceeded the US Oil and Gas industry which returned 64.7% over the past year.

Return vs Market: SWN exceeded the US Market which returned -9% over the past year.

Price Volatility

Is SWN's price volatile compared to industry and market?
SWN volatility
SWN Average Weekly Movement10.4%
Oil and Gas Industry Average Movement8.9%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

Stable Share Price: SWN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: SWN's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1929938Bill Wayhttps://www.swn.com

Southwestern Energy Company, an independent energy company, engages in the exploration, development, and production of natural gas, oil, and natural gas liquids (NGLs) in the United States. It operates through two segments, Exploration and Production, and Marketing. The company focuses on the development of unconventional natural gas and oil reservoirs located in Pennsylvania, West Virginia, Ohio, and Louisiana.

Southwestern Energy Company Fundamentals Summary

How do Southwestern Energy's earnings and revenue compare to its market cap?
SWN fundamental statistics
Market CapUS$8.46b
Earnings (TTM)-US$998.00m
Revenue (TTM)US$11.63b

0.7x

P/S Ratio

-8.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SWN income statement (TTM)
RevenueUS$11.63b
Cost of RevenueUS$4.79b
Gross ProfitUS$6.84b
Other ExpensesUS$7.84b
Earnings-US$998.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.90
Gross Margin58.81%
Net Profit Margin-8.58%
Debt/Equity Ratio487.6%

How did SWN perform over the long term?

See historical performance and comparison