NYSE:SWN

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Southwestern Energy

Executive Summary

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.


Snowflake Analysis

Moderate growth potential and overvalued.


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

Stable Share Price: SWN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.5%

SWN

-4.4%

US Oil and Gas

2.3%

US Market


1 Year Return

-1.1%

SWN

-43.6%

US Oil and Gas

6.7%

US Market

Return vs Industry: SWN exceeded the US Oil and Gas industry which returned -45.2% over the past year.

Return vs Market: SWN underperformed the US Market which returned 6.1% over the past year.


Shareholder returns

SWNIndustryMarket
7 Day1.5%-4.4%2.3%
30 Day-22.3%-15.6%1.5%
90 Day7.2%5.3%17.8%
1 Year-1.1%-1.1%-41.0%-43.6%9.0%6.7%
3 Year-55.2%-55.2%-35.4%-42.3%36.6%27.7%
5 Year-87.2%-87.2%-38.5%-48.6%64.2%46.2%

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 compared to its fair value and its price relative to the market?

13.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SWN ($2.69) is trading below our estimate of fair value ($3.13)

Significantly Below Fair Value: SWN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SWN is unprofitable, so we can't compare its PE Ratio to the US Oil and Gas industry average.

PE vs Market: SWN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SWN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SWN is overvalued based on its PB Ratio (0.9x) compared to the US Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Southwestern Energy forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

94.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: SWN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SWN's is expected to become profitable in the next 3 years.

Revenue vs Market: SWN's revenue (6.1% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: SWN's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SWN's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has Southwestern Energy performed over the past 5 years?

47.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SWN is currently unprofitable.

Growing Profit Margin: SWN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SWN is unprofitable, but has reduced losses over the past 5 years at a rate of 47.9% per year.

Accelerating Growth: Unable to compare SWN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SWN is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-19.8%).


Return on Equity

High ROE: SWN has a negative Return on Equity (-73.49%), as it is currently unprofitable.


Next Steps

Financial Health

How is Southwestern Energy's financial position?


Financial Position Analysis

Short Term Liabilities: SWN's short term assets ($972.0M) exceed its short term liabilities ($914.0M).

Long Term Liabilities: SWN's short term assets ($972.0M) do not cover its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: SWN's debt to equity ratio (134%) is considered high.

Reducing Debt: SWN's debt to equity ratio has increased from 73.3% to 134% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if SWN has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SWN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SWN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SWN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SWN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SWN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SWN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Bill Way (61yo)

4.5yrs

Tenure

US$10,277,819

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

Compensation vs Market: Bill's total compensation ($USD10.28M) is above average for companies of similar size in the US market ($USD4.76M).

Compensation vs Earnings: Bill's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
William Way
President4.5yrsUS$10.28m0.20% $2.9m
Julian Bott
Executive VP & CFO2.42yrsUS$4.25m0.024% $350.2k
Clayton Carrell
Executive VP & COO2.58yrsUS$5.17m0.025% $362.1k
Ron Hyden
Vice President of Technologyno datano datano data
Jennifer McCauley
Senior Vice President of Administration4.25yrsno data0.0064% $93.1k
C. Penchas
Vice President of Investor Relations2.42yrsno datano data
Chris Lacy
VP, General Counsel & Corporate Secretary0.083yrno datano data
R. Kurtz
Vice President of Marketing & Transportation3yrsno data0.0082% $118.7k
Carina Gillenwater
Vice President of Human Resourcesno datano datano data
John Kelly
Senior Vice President of Northeast Appalachia Divisionno datano datano data

2.6yrs

Average Tenure

56yo

Average Age

Experienced Management: SWN's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Way
President4.5yrsUS$10.28m0.20% $2.9m
Jon Marshall
Independent Director3.42yrsUS$280.30k0.039% $568.3k
Gregory Kerley
Independent Director9.92yrsUS$290.00k0.11% $1.6m
John Gass
Independent Director7.67yrsUS$305.00k0.020% $292.7k
Patrick Prevost
Independent Director3.08yrsUS$285.59k0.014% $199.5k
Denis Walsh
Independent Director1.08yrsUS$216.88kno data
Anne Taylor
Independent Director1.83yrsUS$275.00k0.0047% $67.8k
Catherine Kehr
Independent Chairman of the Board4.17yrsUS$405.00k0.076% $1.1m

3.8yrs

Average Tenure

64yo

Average Age

Experienced Board: SWN's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$1.455b
  • Shares outstanding: 540.89m
  • 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, oil, and natural gas liquids (NGLs) in the United States. It operates through Exploration and Production, and Marketing segments. The company focuses on the development of unconventional natural gas reservoirs located in Pennsylvania and West Virginia. As of December 31, 2019, it had approximately 173,994 net acres in Northeast Appalachia; and approximately 287,693 net acres in Southwest Appalachia. The company’s estimated proved natural gas, oil, and NGLs reserves comprise 12,721 billion cubic feet of natural gas equivalent (Bcfe); and 929 Bcfe of proved undeveloped reserves. It also engages in marketing of natural gas, oil, and NGLs. It serves energy companies, utilities, and industrial purchasers of natural gas. Southwestern Energy Company was founded in 1929 and is headquartered in Spring, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 23:55
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.