Switch to:

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 : 7/10

vs
industry
vs
history
Cash to Debt 0.01
SWN's Cash to Debt is ranked higher than
53% of the 859 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.73 vs. SWN: 0.01 )
SWN' s 10-Year Cash to Debt Range
Min: 0   Max: 2.24
Current: 0.01

0
2.24
Equity to Asset 0.45
SWN's Equity to Asset is ranked higher than
70% of the 872 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.55 vs. SWN: 0.45 )
SWN' s 10-Year Equity to Asset Range
Min: 0.2   Max: 0.6
Current: 0.45

0.2
0.6
Interest Coverage 28.94
SWN's Interest Coverage is ranked higher than
77% of the 567 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 14.37 vs. SWN: 28.94 )
SWN' s 10-Year Interest Coverage Range
Min: 2.07   Max: 362.7
Current: 28.94

2.07
362.7
F-Score: 7
Z-Score: 3.69
M-Score: -3.11
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 : 8/10

vs
industry
vs
history
Operating margin (%) 35.70
SWN's Operating margin (%) is ranked higher than
93% of the 881 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 6.01 vs. SWN: 35.70 )
SWN' s 10-Year Operating margin (%) Range
Min: -40.32   Max: 39.12
Current: 35.7

-40.32
39.12
Net-margin (%) 20.87
SWN's Net-margin (%) is ranked higher than
90% of the 881 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 2.46 vs. SWN: 20.87 )
SWN' s 10-Year Net-margin (%) Range
Min: -25.9   Max: 24.57
Current: 20.87

-25.9
24.57
ROE (%) 19.42
SWN's ROE (%) is ranked higher than
96% of the 952 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -0.60 vs. SWN: 19.42 )
SWN' s 10-Year ROE (%) Range
Min: -33.04   Max: 23.14
Current: 19.42

-33.04
23.14
ROA (%) 8.74
SWN's ROA (%) is ranked higher than
94% of the 992 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -0.83 vs. SWN: 8.74 )
SWN' s 10-Year ROA (%) Range
Min: -10.49   Max: 11.93
Current: 8.74

-10.49
11.93
ROC (Joel Greenblatt) (%) 16.50
SWN's ROC (Joel Greenblatt) (%) is ranked higher than
94% of the 978 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -0.65 vs. SWN: 16.50 )
SWN' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -18.86   Max: 23.88
Current: 16.5

-18.86
23.88
Revenue Growth (%) 8.70
SWN's Revenue Growth (%) is ranked higher than
78% of the 661 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 11.20 vs. SWN: 8.70 )
SWN' s 10-Year Revenue Growth (%) Range
Min: -13   Max: 45.7
Current: 8.7

-13
45.7
EBITDA Growth (%) 7.60
SWN's EBITDA Growth (%) is ranked higher than
81% of the 611 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 4.90 vs. SWN: 7.60 )
SWN' s 10-Year EBITDA Growth (%) Range
Min: -18.9   Max: 103.1
Current: 7.6

-18.9
103.1
EPS Growth (%) 5.00
SWN's EPS Growth (%) is ranked higher than
79% of the 520 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 2.90 vs. SWN: 5.00 )
SWN' s 10-Year EPS Growth (%) Range
Min: -20.6   Max: 172.8
Current: 5

-20.6
172.8
» SWN's 10-Y Financials

Financials


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

» Details

Guru Trades

Q1 2013

SWN Guru Trades in Q1 2013

Ray Dalio 30,353 sh (New)
George Soros 449,236 sh (New)
Jim Simons 1,342,100 sh (New)
Ron Baron 1,626 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)
T Boone Pickens Sold Out
Andreas Halvorsen 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
Q2 2013

SWN Guru Trades in Q2 2013

Ruane Cunniff 1,003,475 sh (New)
Ron Baron 10,209 sh (+527.86%)
Ray Dalio 89,696 sh (+195.51%)
PRIMECAP Management 2,175,700 sh (+5.48%)
Jeremy Grantham 100,100 sh (+0.3%)
Frank Sands 18,103,650 sh (+0.04%)
Paul Singer 1,380,000 sh (unchged)
George Soros Sold Out
Diamond Hill Capital 259,040 sh (-2.7%)
Wallace Weitz 1,126,360 sh (-10.44%)
RS Investment Management 12,237,435 sh (-12.76%)
Pioneer Investments 1,628,881 sh (-20.44%)
Jim Simons 956,000 sh (-28.77%)
Steven Cohen 5,794 sh (-74.55%)
» More
Q3 2013

SWN Guru Trades in Q3 2013

Steven Cohen 401,111 sh (+6822.87%)
Ruane Cunniff 2,003,475 sh (+99.65%)
Jim Simons 1,449,900 sh (+51.66%)
Diamond Hill Capital 271,849 sh (+4.94%)
Ray Dalio 91,696 sh (+2.23%)
Wallace Weitz 1,128,200 sh (+0.16%)
Jeremy Grantham Sold Out
Pioneer Investments 1,616,450 sh (-0.76%)
Frank Sands 17,862,671 sh (-1.33%)
PRIMECAP Management 2,130,600 sh (-2.07%)
RS Investment Management 11,605,367 sh (-5.17%)
Ron Baron 6,957 sh (-31.85%)
» More
Q4 2013

SWN Guru Trades in Q4 2013

Andreas Halvorsen 689,700 sh (New)
Ruane Cunniff 3,311,945 sh (+65.31%)
Frank Sands 21,660,444 sh (+21.26%)
Diamond Hill Capital 272,095 sh (+0.09%)
Caxton Associates 320,000 sh (unchged)
Ron Baron Sold Out
Pioneer Investments 1,615,832 sh (-0.04%)
PRIMECAP Management 2,114,986 sh (-0.73%)
Jim Simons 1,249,200 sh (-13.84%)
Wallace Weitz 955,440 sh (-15.31%)
RS Investment Management 9,079,489 sh (-21.76%)
Ray Dalio 62,800 sh (-31.51%)
Steven Cohen 236,027 sh (-41.16%)
» 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 2013-12-31 Add 21.26%0.39%$35.16 - $40.18 $ 48.730%21660444
Ruane Cunniff 2013-12-31 Add 65.31%0.28%$35.16 - $40.18 $ 48.730%3311945
Wallace Weitz 2013-12-31 Reduce -15.31%0.23%$35.16 - $40.18 $ 48.730%955440
Ray Dalio 2013-12-31 Reduce -31.51%0.01%$35.16 - $40.18 $ 48.730%62800
Ron Baron 2013-12-31 Sold Out $35.16 - $40.18 $ 48.730%0
Ruane Cunniff 2013-09-30 Add 99.65%0.21%$36.44 - $39.91 $ 48.728%2003475
Ron Baron 2013-09-30 Reduce -31.85%$36.44 - $39.91 $ 48.728%6957
Ruane Cunniff 2013-06-30 New Buy0.24%$34.97 - $39.58 $ 48.731%1003475
George Soros 2013-06-30 Sold Out 0.2%$34.97 - $39.58 $ 48.731%0
Wallace Weitz 2013-06-30 Reduce -10.44%0.2%$34.97 - $39.58 $ 48.731%1126360
Ray Dalio 2013-06-30 Add 195.51%0.02%$34.97 - $39.58 $ 48.731%89696
Ron Baron 2013-06-30 Add 527.86%$34.97 - $39.58 $ 48.731%10209
Frank Sands 2013-03-31 Add 64.35%0.94%$32.09 - $38.86 $ 48.740%18096000
George Soros 2013-03-31 New Buy0.2%$32.09 - $38.86 $ 48.740%449236
Ray Dalio 2013-03-31 New Buy0.01%$32.09 - $38.86 $ 48.740%30353
Ron Baron 2013-03-31 New Buy$32.09 - $38.86 $ 48.740%1626
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Southwestern Energy Co

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

Ratios

vs
industry
vs
history
P/E(ttm) 24.30
SWN's P/E(ttm) is ranked higher than
66% of the 470 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 21.90 vs. SWN: 24.30 )
SWN' s 10-Year P/E(ttm) Range
Min: 13.07   Max: 2120.48
Current: 24.3

13.07
2120.48
P/B 4.70
SWN's P/B is ranked lower than
61% of the 938 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.50 vs. SWN: 4.70 )
SWN' s 10-Year P/B Range
Min: 1.28   Max: 10.95
Current: 4.7

1.28
10.95
P/S 5.07
SWN's P/S is ranked lower than
54% of the 897 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 3.53 vs. SWN: 5.07 )
SWN' s 10-Year P/S Range
Min: 1.46   Max: 10.78
Current: 5.07

1.46
10.78
EV-to-EBIT 15.90
SWN's EV-to-EBIT is ranked higher than
69% of the 647 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 17.38 vs. SWN: 15.90 )
SWN' s 10-Year EV-to-EBIT Range
Min: 8.9   Max: 134
Current: 15.9

8.9
134
Shiller P/E 54.90
SWN's Shiller P/E is ranked higher than
51% of the 321 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 24.56 vs. SWN: 54.90 )
SWN' s 10-Year Shiller P/E Range
Min: 25.09   Max: 310.5
Current: 54.9

25.09
310.5

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 4.70
SWN's Price/Tangible Book is ranked lower than
67% of the 906 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.70 vs. SWN: 4.70 )
SWN' s 10-Year Price/Tangible Book Range
Min: 0.86   Max: 7.15
Current: 4.7

0.86
7.15
Price/DCF (Projected) 8.90
SWN's Price/DCF (Projected) is ranked lower than
66% of the 254 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.80 vs. SWN: 8.90 )
SWN' s 10-Year Price/DCF (Projected) Range
Min: 4.96   Max: 45.63
Current: 8.9

4.96
45.63
Price/Median PS Value 1.00
SWN's Price/Median PS Value is ranked higher than
56% of the 809 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.90 vs. SWN: 1.00 )
SWN' s 10-Year Price/Median PS Value Range
Min: 0.12   Max: 1.69
Current: 1

0.12
1.69
Price/Graham Number 2.30
SWN's Price/Graham Number is ranked higher than
53% of the 451 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.40 vs. SWN: 2.30 )
SWN' s 10-Year Price/Graham Number Range
Min: 0.73   Max: 3.32
Current: 2.3

0.73
3.32
Earnings Yield (Greenblatt) 6.30
SWN's Earnings Yield (Greenblatt) is ranked higher than
74% of the 655 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 5.70 vs. SWN: 6.30 )
SWN' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.7   Max: 11.3
Current: 6.3

0.7
11.3
Forward Rate of Return (Yacktman) -0.37
SWN's Forward Rate of Return (Yacktman) is ranked higher than
89% of the 758 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -12.69 vs. SWN: -0.37 )
SWN' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -3.3   Max: 45.1
Current: -0.37

-3.3
45.1

Business Description

Industry: Oil & Gas - E&P » Oil & Gas E&P
Compare:OJSCY, APC, APA, HRTPY, SGTZY » details
Traded in other countries:SW5.Germany
Southwestern Energy Company is a Delaware corporation. 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. The Company 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.

Personalized Checklist








Within your circle of competence?
Macro economic environment favorable?
High quality business?
Enough margin of safety with stocks?
Gurus are buying?
Insiders are buying?
Management capable and shareholder friendly?
Catalyst for stock price to appreciate?
Your level of confidence with the research?

Add Notes, Comments or Ask Questions

User Comments

No comment yet

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide