Southwestern Energy Further Strengthens Financial Resiliency
October 09 2019 - 4:15PM
Business Wire
Southwestern Energy Company (NYSE: SWN) today announced several
recent financial developments that reinforce its resiliency and
strategic flexibility in a low commodity price environment.
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SWN Debt Maturity Schedule (Graphic:
Southwestern Energy Company)
- Borrowing base unchanged in semi-annual redetermination under
the $2 billion credit facility with maturity extended one year to
2024; no borrowings outstanding as of September 30, 2019
- Repurchased $50 million of senior notes due 2025 to 2027 during
the third quarter at an average 13% discount, funded principally by
sales of non-core, non-producing assets
- Leading 5-year maturity window with no significant maturities
until 2025
- S&P reaffirmed BB credit rating with a stable outlook
- Additional hedges added during the third quarter, including 186
Bcf and 99 Bcf of natural gas for 2020 and 2021
“Financial strength is a core priority for Southwestern Energy.
The Company is strategically advantaged in this low price
environment, given our strong balance sheet, liquidity position and
debt maturity profile. The recent actions by our bank group and
S&P validate this view. Financial resilience, coupled with a
premier asset base, outstanding operational execution and lowered
cost structure, sets SWN apart as a leading Appalachia producer,”
said Bill Way, President and Chief Executive Officer of
Southwestern Energy.
Hedging Update
The table presented below summarizes the Company’s commodity
hedging positions as of September 30, 2019 for the remainder of
2019 and the full years 2020 and 2021.
Q4 2019
2020
2021
Volume(1)
Price(2)
Volume(1)
Price(2)
Volume(1)
Price(2)
Natural Gas
111
$2.85
360
$2.63
134
$2.55
Propane
1,116
$29.62
3,294
$25.54
456
$22.24
Ethane
2,194
$10.53
3,843
$9.80
─
─
Oil
1,152
$60.24
2,837
$58.48
730
$53.00
(1) The volumes presented are Bcf for natural gas and MBbls for
propane, ethane and oil. (2) Prices presented are weighted average
floor price per MMBtu for natural gas and weighted average floor
price per Bbl for propane, ethane and oil.
The Company’s derivative positions include fixed price swaps,
two-way costless collars and three-way collars, which provide
protection to downside risk while affording partial price upside.
Additional detail on the Company’s derivative position will be
available in the third quarter Form 10-Q.
About Southwestern Energy Southwestern Energy Company is
an independent energy company engaged in natural gas, natural gas
liquids and oil exploration, development, production and marketing.
For additional information, visit our website www.swn.com.
Forward Looking Statement This news release contains
forward-looking statements. Forward-looking statements relate to
future events and anticipated results of operations, business
strategies, and other aspects of our operations or operating
results. In many cases you can identify forward-looking statements
by terminology such as “anticipate,” “intend,” “plan,” “project,”
“estimate,” “continue,” “potential,” “should,” “could,” “may,”
“will,” “objective,” “guidance,” “outlook,” “effort,” “expect,”
“believe,” “predict,” “budget,” “projection,” “goal,” “forecast,”
“target” or similar words. Statements may be forward looking even
in the absence of these particular words. Where, in any
forward-looking statement, the Company expresses an expectation or
belief as to future results, such expectation or belief is
expressed in good faith and believed to have a reasonable basis.
However, there can be no assurance that such expectation or belief
will result or be achieved. The actual results of operations can
and will be affected by a variety of risks and other matters
including, but not limited to, changes in commodity prices
(including geographic basis differentials); changes in expected
levels of natural gas and oil reserves or production; operating
hazards, drilling risks, unsuccessful exploratory activities;
natural disasters; limited access to capital or significantly
higher cost of capital related to illiquidity or uncertainty in the
domestic or international financial markets; international monetary
conditions; the risks related to the discontinuation of LIBOR
and/or other reference rates that may be introduced following the
transition, including increased expenses and litigation and the
effectiveness of interest rate hedge strategies; unexpected cost
increases; potential liability for remedial actions under existing
or future environmental regulations; failure or delay in obtaining
necessary regulatory approvals; potential liability resulting from
pending or future litigation; general domestic and international
economic and political conditions; the impact of a prolonged
federal, state or local government shutdown and threats not to
increase the federal government’s debt limit; as well as changes in
tax, environmental and other laws, including court rulings,
applicable to our business. Other factors that could cause actual
results to differ materially from those described in the
forward-looking statements include other economic, business,
competitive and/or regulatory factors affecting our business
generally as set forth in our filings with the Securities and
Exchange Commission. Unless legally required, Southwestern Energy
Company undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20191009005735/en/
Investor Contact Paige Penchas Vice President, Investor
Relations (832) 796-4068 paige_penchas@swn.com Media
Contact Jim Schwartz Director, Corporate Communications (832)
796-2716 jim_schwartz@swn.com
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