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Southwestern Energy Company Reports Operating Results (10-K)

February 25, 2011 | About:

Southwestern Energy Company (NYSE:SWN) filed Annual Report for the period ended 2010-12-31.

Southwestern Energy Company has a market cap of $13.04 billion; its shares were traded at around $37.61 with a P/E ratio of 21.5 and P/S ratio of 6.1. Southwestern Energy Company had an annual average earning growth of 20% over the past 10 years.Hedge Fund Gurus that owns SWN: Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC, Louis Moore Bacon of Moore Capital Management, LP. Mutual Fund and Other Gurus that owns SWN: RS Investment Management, Wallace Weitz of Weitz Wallace R & Co, Columbia Wanger of Columbia Wanger Asset Management, Diamond Hill Capital of Diamond Hill Capital Management Inc, Pioneer Investments, Mario Gabelli of GAMCO Investors, Ron Baron of Baron Funds, PRIMECAP Management.

Highlight of Business Operations:

The vast majority of our operating income and earnings before interest, taxes, depreciation, depletion and amortization, or EBITDA, is derived from our E&P business. In 2010, 81% of our operating income and 86% of our EBITDA were generated from our E&P business, compared to 86% of our operating income and 90% of our EBITDA in 2009, absent our $907.8 million, or $558.3 million net of taxes, non-cash ceiling test impairment of our natural gas and oil properties, and 92% of our operating income and 89% of our EBITDA in 2008. In 2010, 19% of our operating income and 14% of our EBITDA were generated from Midstream Services, compared to 14% of our operating income and 10% of our EBITDA in 2009, absent the non-cash ceiling test impairment of our natural gas and oil properties, and 7% of our operating income and 5% of our EBITDA in 2008. In 2008, the remainder of our EBITDA was generated from our Gas Distribution business which was sold effective July 1, 2008. EBITDA is a non-GAAP measure. We refer you to Business Other Items Reconciliation of Non-GAAP Measures in Item 1 of Part I of this Form 10-K for a table that reconciles EBITDA to net income (loss) attributable to Southwestern Energy.

continue to provide significant production and reserve growth. At December 31, 2010, we held approximately 915,884 net acres in the Fayetteville Shale play and the area accounted for approximately 88% of our total proved oil and natural gas reserves and approximately 87% of our total oil and natural gas production during 2010. We intend to further develop our acreage position in the Fayetteville Shale Play and improve our well results through the use of advanced technologies and detailed technical analysis of our properties. Additionally, we are actively drilling on portions of our 173,009 net acres in the Marcellus Shale and believe our production and reserves from this play will grow substantially.

Approximately 100% of our year-end 2010 estimated proved reserves were natural gas and 55% were classified as proved developed, compared to 100% and 54%, respectively, in 2009 and 100% and 62%, respectively, in 2008. We operate approximately 95% of our reserves, based on the pre-tax PV-10 value of our proved developed producing reserves, and our reserve life index approximated 12.2 years at year-end 2010. Sales of natural gas production accounted for nearly 99% of total operating revenues for this segment in 2010, 100% in 2009 and 97% in 2008.

Read the The complete Report

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