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38.83 (1y: +35%)
Market Cap 13.92 B P/E(ttm)
Enterprise Value 15.6 B P/B 4.40
SWN- NYSE (USA)
Southwestern Energy Company
  • Currently 1/5
Business Predictability Rank: 1-Star (On Watch)
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$38.83
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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry		 vs
history
Cash to Debt 0.032
SWN's Cash to Debt is ranked lower than
68% of the 425 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.38 vs. SWN: 0.032 )
SWN' s 10-Year Cash to Debt Range
Min: 0   Max: 2.24
Current: 0.03
0
2.24
Equity to Asset 0.451
SWN's Equity to Asset is ranked lower than
57% of the 425 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.50 vs. SWN: 0.451 )
SWN' s 10-Year Equity to Asset Range
Min: 0.2   Max: 0.6
Current: 0.45
0.2
0.6
F-Score: 3
Z-Score: 2.43
M-Score: -3.62
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry		 vs
history
Operating margin (%) -41.10
SWN's Operating margin (%) is ranked lower than
70% of the 425 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.00 vs. SWN: -41.10 )
SWN' s 10-Year Operating margin (%) Range
Min: -41.1   Max: 39.1
Current: -41.1
-41.1
39.1
Net-margin (%) -26
SWN's Net-margin (%) is ranked lower than
66% of the 425 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.00 vs. SWN: -26 )
SWN' s 10-Year Net-margin (%) Range
Min: -26   Max: 24.6
Current: -26
-26
24.6
ROE (%) -23.3
SWN's ROE (%) is ranked lower than
86% of the 425 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.00 vs. SWN: -23.3 )
SWN' s 10-Year ROE (%) Range
Min: -33   Max: 23.1
Current: -23.3
-33
23.1
ROA (%) -10.5
SWN's ROA (%) is ranked lower than
82% of the 425 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.00 vs. SWN: -10.5 )
SWN' s 10-Year ROA (%) Range
Min: -10.5   Max: 11.9
Current: -10.5
-10.5
11.9
ROC (Joel Greenblatt) (%) -19.20
SWN's ROC (Joel Greenblatt) (%) is ranked lower than
83% of the 425 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.00 vs. SWN: -19.20 )
SWN' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -19.2   Max: 24.5
Current: -19.2
-19.2
24.5
Revenue Growth (%) 5.7
SWN's Revenue Growth (%) is ranked higher than
66% of the 425 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.00 vs. SWN: 5.7 )
SWN' s 10-Year Revenue Growth (%) Range
Min: -9.9   Max: 32.6
Current: 5.7
-9.9
32.6
EPS Growth (%) 112.3
SWN's EPS Growth (%) is ranked higher than
99% of the 425 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.00 vs. SWN: 112.3 )
SWN' s 10-Year EPS Growth (%) Range
Min: 2.6   Max: 112.3
Current: 112.3
2.6
112.3
» SWN's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades
Q2 2012

SWN Guru Trades in Q2 2012

T Boone Pickens 264,085 sh (New)
John Burbank 127,500 sh (New)
Paul Tudor Jones 370,000 sh (New)
NWQ Managers 181,842 sh (New)
RS Investment Management 15,899,662 sh (+18.55%)
Diamond Hill Capital 342,486 sh (+16.39%)
Frank Sands 10,563,184 sh (+6.31%)
Pioneer Investments 4,840,681 sh (+3.84%)
Wallace Weitz 1,425,529 sh (-12.7%)
Steven Cohen 534,923 sh (-42.04%)
PRIMECAP Management 2,186,300 sh (-69.63%)
» More
Q3 2012

SWN Guru Trades in Q3 2012

George Soros 1,000,462 sh (New)
Andreas Halvorsen 1,108,637 sh (New)
T Boone Pickens 307,961 sh (+16.61%)
Frank Sands 10,723,260 sh (+1.52%)
Wallace Weitz 1,425,529 sh (unchged)
Steven Cohen Sold Out
John Burbank Sold Out
Paul Tudor Jones Sold Out
PRIMECAP Management 2,159,100 sh (-1.24%)
RS Investment Management 15,517,356 sh (-2.4%)
Diamond Hill Capital 318,213 sh (-7.09%)
Pioneer Investments 4,118,523 sh (-14.92%)
NWQ Managers 83,728 sh (-53.96%)
» More
Q4 2012

SWN Guru Trades in Q4 2012

Steven Cohen 9,139 sh (New)
Andreas Halvorsen 3,259,637 sh (+194.02%)
Frank Sands 11,010,809 sh (+2.68%)
Wallace Weitz 1,425,529 sh (unchged)
Jeremy Grantham 97,800 sh (unchged)
NWQ Managers Sold Out
George Soros Sold Out
T Boone Pickens 307,634 sh (-0.11%)
PRIMECAP Management 2,147,200 sh (-0.55%)
RS Investment Management 13,719,187 sh (-11.59%)
Diamond Hill Capital 264,521 sh (-16.87%)
Pioneer Investments 3,078,390 sh (-25.26%)
» More
Q1 2013

SWN Guru Trades in Q1 2013

Jim Simons 1,342,100 sh (New)
George Soros 449,236 sh (New)
Ron Baron 1,626 sh (New)
Ray Dalio 30,353 sh (New)
Steven Cohen 22,765 sh (+149.1%)
Frank Sands 18,096,000 sh (+64.35%)
RS Investment Management 14,026,825 sh (+2.24%)
Jeremy Grantham 99,800 sh (+2.04%)
Diamond Hill Capital 266,219 sh (+0.64%)
Paul Singer 1,380,000 sh (unchged)
Andreas Halvorsen Sold Out
T Boone Pickens Sold Out
PRIMECAP Management 2,062,600 sh (-3.94%)
Wallace Weitz 1,257,660 sh (-11.78%)
Pioneer Investments 2,047,433 sh (-33.49%)
» More
» Details

Insider Trades

Latest Guru Trades with SWN

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Frank Sands 2013-03-31 Add 64.35%0.94%$32.09 - $38.86 $ 38.8111%18096000
George Soros 2013-03-31 New Buy0.2%$32.09 - $38.86 $ 38.8111%449236
Ray Dalio 2013-03-31 New Buy0.01%$32.09 - $38.86 $ 38.8111%30353
Ron Baron 2013-03-31 New Buy$32.09 - $38.86 $ 38.8111%1626
George Soros 2012-12-31 Sold Out 0.56%$32.78 - $36.6 $ 38.8111%0
George Soros 2012-09-30 New Buy0.56%$30.54 - $35.75 $ 38.8120%1000462
John Burbank 2012-09-30 Sold Out 0.14%$30.54 - $35.75 $ 38.8120%0
PRIMECAP Management 2012-06-30 Reduce -69.63%0.23%$25.72 - $31.82 $ 38.8134%2186300
John Burbank 2012-06-30 New Buy0.14%$25.72 - $31.82 $ 38.8134%127500
Wallace Weitz 2012-03-31 Add 53.92%0.74%$29.06 - $35.6 $ 38.8126%1632829
PRIMECAP Management 2012-03-31 Add 25.42%0.07%$29.06 - $35.6 $ 38.8126%7199150
Mario Gabelli 2012-03-31 Sold Out 0.0039%$29.06 - $35.6 $ 38.8126%0
Wallace Weitz 2011-09-30 Add 7.05%0.11%$33.91 - $49 $ 38.81-4%995960
PRIMECAP Management 2011-09-30 Add 23.88%0.06%$33.91 - $49 $ 38.81-4%5344400
PRIMECAP Management 2011-06-30 Add 270.66%0.19%$38.02 - $43.86 $ 38.81-7%4314100
Wallace Weitz 2011-06-30 Add 5.85%0.1%$38.02 - $43.86 $ 38.81-7%930381
Mario Gabelli 2011-06-30 Reduce -20.89%$38.02 - $43.86 $ 38.81-7%18930
Wallace Weitz 2011-03-31 Add 237.66%1.22%$36.12 - $43.49 $ 38.810%878925
Mario Gabelli 2011-03-31 Reduce -93.32%0.14%$36.12 - $43.49 $ 38.810%23930
PRIMECAP Management 2011-03-31 Add 153.96%0.04%$36.12 - $43.49 $ 38.810%1163900
Ron Baron 2011-03-31 Sold Out 0.03%$36.12 - $43.49 $ 38.810%0
Wallace Weitz 2010-12-31 New Buy0.48%$32.73 - $38.42 $ 38.819%260300
Mario Gabelli 2010-09-30 Add 486.17%0.04%$31.44 - $38.81 $ 38.8110%357005
George Soros 2010-09-30 Sold Out 0.01%$31.44 - $38.81 $ 38.8110%0
Ron Baron 2010-09-30 Add 67.69%0.01%$31.44 - $38.81 $ 38.8110%125765
Ron Baron 2010-06-30 New Buy0.02%$35.86 - $44.99 $ 38.81-4%75000
Mario Gabelli 2010-06-30 Reduce -72.79%0.01%$35.86 - $44.99 $ 38.81-4%60905
George Soros 2010-06-30 New Buy0.01%$35.86 - $44.99 $ 38.81-4%7900
Steve Mandel 2010-03-31 Sold Out 0.92%$37.7 - $51.65 $ 38.81-13%0
PRIMECAP Management 2010-03-31 Reduce -63.58%0.02%$37.7 - $51.65 $ 38.81-13%458300
Premium More recent guru trades are included for Premium Members only!!

Guru Investment Theses on Southwestern Energy Company

RS Investments Comments on Southwestern Energy - Nov 05, 2012

Southwestern Energy (SWN) is an independent oil and gas company with low-cost natural gas operations in the Fayetteville Shale in Arkansas and the Marcellus Shale in Pennsylvania. While the company's shares have been negatively impacted by the decline in natural gas prices over the last few years, our investment in Southwestern is premised more on the view that the company will be able to create value by reinvesting in high-return gas projects, even in a low price environment, by virtue of its low-cost asset base. Indeed, our analysis shows that while commodity producer stocks are positively correlated with changes in the price of the underlying commodity over short periods of time, commodity producer stocks tend to be much more closely correlated with changes in net asset value and returns on invested capital over longer periods of time – as is the case in any industry. After studying Southwestern Energy's reinvestment opportunities and analyzing the unit-level economics of the projects that the company will be pursuing over the next 3-5 years, we remain of the view that Southwestern Energy will continue to generate very strong rates of return which should support double-digit growth in net asset value (NAV) annually, even in a low commodity price environment. In addition, with a strong balance sheet and multi-year drilling inventory, we believe Southwestern is well-positioned to benefit from any potential improvement in natural gas fundamentals over the next few years.

From RS Investments' RS Value Fund Third Quarter Letter.


Check out RS Investments latest stock trades

Top Ranked Articles about Southwestern Energy Company

Energy Tycoon, T. Boone Pickens’ Q3 Updates: Three New Buys Are Halliburton, Consol Energy and Arch Coal
November 15, 2012
T. Boone Pickens - Energy Tycoon, T. Boone Pickens’ Q3 Updates: Three New Buys Are Halliburton, Consol Energy And Arch Coal
Energy stock Guru, T. Boone Pickens, founder of private equity firm BP Capital, has reported 20 third quarter updates to his portfolio: Read more...
RS Investments Comments on Southwestern Energy
November 5, 2012
Southwestern Energy (SWN) is an independent oil and gas company with low-cost natural gas operations in the Fayetteville Shale in Arkansas and the Marcellus Shale in Pennsylvania. While the company's shares have been negatively impacted by the decline in natural gas prices over the last few years, our investment in Southwestern is premised more on the view that the company will be able to create value by reinvesting in high-return gas projects, even in a low price environment, by virtue of its low-cost asset base. Indeed, our analysis shows that while commodity producer stocks are positively correlated with changes in the price of the underlying commodity over short periods of time, commodity producer stocks tend to be much more closely correlated with changes in net asset value and returns on invested capital over longer periods of time – as is the case in any industry. After studying Southwestern Energy's reinvestment opportunities and analyzing the unit-level economics of the projects that the company will be pursuing over the next 3-5 years, we remain of the view that Southwestern Energy will continue to generate very strong rates of return which should support double-digit growth Read more...
Weekly CFO Sells Highlight: SWN, SAAS, NFX, SBH, AFL
October 1, 2012
According to GuruFocus Insider Data, the largest CFO sells during the past week were: Southwestern Energy Company, inContact Inc., Newfield Exploration Co., Sally Beauty Holdings Inc. and Aflac Incorporated. Read more...
Weekly CFO Sells Highlight: SWN, BECN, NSIT, HOLX, QLTI, THRX
August 13, 2012
According to GuruFocus Insider Data, the largest CFO sells during the past week were: Southwestern Energy Company, Beacon Roofing Supply Inc., Insight Enterprises Inc., Hologic Inc., QLT Inc. and Theravance Inc. Read more...
Weekly Top Insider Sells: DVA, SWN, CVX, FIS, and COST
August 13, 2012
According to GuruFocus Insider Data, these are the largest insider sells during the past week. The overall trend of insiders is illustrated in the chart below: Read more...

Ratios

vs
industry		 vs
history
P/B 4.40
SWN's P/B is ranked lower than
92% of the 425 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.10 vs. SWN: 4.40 )
SWN' s 10-Year P/B Range
Min: 0.84   Max: 11.05
Current: 4.4
0.84
11.05
P/S 4.80
SWN's P/S is ranked lower than
64% of the 425 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 3.40 vs. SWN: 4.80 )
SWN' s 10-Year P/S Range
Min: 0.48   Max: 10.78
Current: 4.8
0.48
10.78
PFCF 175.40
SWN's PFCF is ranked lower than
99% of the 425 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.00 vs. SWN: 175.40 )
SWN' s 10-Year PFCF Range
Min: 5.44   Max: 164.9
Current: 175.4
5.44
164.9
EV-to-EBIT 14.3
SWN's EV-to-EBIT is ranked lower than
68% of the 425 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 5.96 vs. SWN: 14.3 )
SWN' s 10-Year EV-to-EBIT Range
Min: 7.4   Max: 35.3
Current: 14.3
7.4
35.3
Shiller P/E 55.2
SWN's Shiller P/E is ranked lower than
89% of the 425 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.00 vs. SWN: 55.2 )
SWN' s 10-Year Shiller P/E Range
Min: 25.32   Max: 310.5
Current: 55.2
25.32
310.5

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 47.6
SWN's Price/Net Current Asset Value is ranked lower than
84% of the 425 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 11.80 vs. SWN: 47.6 )
SWN' s 10-Year Price/Net Current Asset Value Range
Min: 4.1   Max: 80.3
Current: 47.6
4.1
80.3
Price/Tangible Book 4.4
SWN's Price/Tangible Book is ranked lower than
90% of the 425 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.10 vs. SWN: 4.4 )
SWN' s 10-Year Price/Tangible Book Range
Min: 1.5   Max: 7.1
Current: 4.4
1.5
7.1
Price/DCF (Projected) 1.6
SWN's Price/DCF (Projected) is ranked lower than
86% of the 425 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.00 vs. SWN: 1.6 )
SWN' s 10-Year Price/DCF (Projected) Range
Min: 1.3   Max: 20
Current: 1.6
1.3
20
Price/Median PS Value 1.2
SWN's Price/Median PS Value is ranked lower than
74% of the 425 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.70 vs. SWN: 1.2 )
SWN' s 10-Year Price/Median PS Value Range
Min: 0.2   Max: 1.9
Current: 1.2
0.2
1.9
Forward Rate of Return (Yacktman) 4.93
SWN's Forward Rate of Return (Yacktman) is ranked higher than
90% of the 425 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -1.04 vs. SWN: 4.93 )
SWN' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -4.7   Max: 36.8
Current: 4.93
-4.7
36.8

Business Description

Southwestern Energy Company was incorporated in Delaware. The Company is an independent energy company mainly engaged in natural gas and crude oil exploration, development and production, within the United States. It is also focused on creating and capturing additional value through its natural gas gathering and marketing businesses or Midstream Services. The Company operates in two segments: Exploration and Production and Midstream Services. The Company's main business is the exploration for and production of natural gas within the United States, with its current operations being principally focused on development of an unconventional gas reservoir located on the Arkansas side of the Arkoma Basin. It is also actively engaged in exploration and production activities in Oklahoma, Texas and Pennsylvania. It conducts its exploration and production operations through its wholly-owned subsidiaries, SEECO, Inc., or SEECO and Southwestern Energy Production Company, or SEPCO. The Company engages in gas gathering activities in Arkansas and Texas through its gathering subsidiaries, DeSoto Gathering Company, L.L.C. and Angelina Gathering Company, L.L.C. DeSoto Gathering and Angelina Gathering mainly support its E&P operations and generate revenue from gathering fees associated with the transportation of the Company and third party gas to market. The Company's gas marketing subsidiary, Southwestern Energy Services Company or SES, captures downstream opportunities which arise through marketing and transportation activity of the gas produced in its E&P operations. The Company's operations are mainly focused on the Fayetteville Shale. The Company customers include major and small energy companies, utilities and industrial consumers of natural gas. It competes in the acquisition of properties, the search for and development of reserves, the production and sale of natural gas and oil and the securing of labor and equipment required conducting its operations. The Company's competitors include major oil and gas companies, other independent oil and gas companies and individual producers and operators. The Company's operations are subject to numerous federal, state and local laws and regulations including the Comprehensive Environmental Response, Compensation and Liability Act, or the CERCLA, the Clean Water Act, the Clean Air Act and similar state statutes.
Company Website
SEC Reports
Industry: Oil & Gas E&P
Compare:OJSCY, APC, APA, HRTPY, SGTZY
Traded in other countries:SW5.Germany
» More Articles for SWN

Headlines

Articles On GuruFocus.com
Energy Tycoon, T. Boone Pickens’ Q3 Updates: Three New Buys Are Halliburton, Consol Energy and Arc Nov 15 2012 
RS Investments Comments on Southwestern Energy Nov 05 2012 
RS Investments' RS Value Fund Third Quarter 2012 Mutual Fund Commentary Nov 05 2012 
Weekly Top Insider Sells: GOOG, TIF, SWN, and AZO Oct 01 2012 
Weekly CFO Sells Highlight: SWN, SAAS, NFX, SBH, AFL Oct 01 2012 
Boone Pickens Sees Oil Going Up, Buys 12 New Oil Stocks Aug 17 2012 
Weekly CFO Sells Highlight: SWN, BECN, NSIT, HOLX, QLTI, THRX Aug 13 2012 
Weekly Top Insider Sells: DVA, SWN, CVX, FIS, and COST Aug 13 2012 
5 Oil & Gas Candidates To Consider Now Mar 25 2012 
5 Must-Own Energy Stocks for 2012 Mar 23 2012 

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