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Southwestern Energy Co Financial Strength

: 3 (As of Jun. 2022)
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Southwestern Energy Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Southwestern Energy Co displays poor financial strength. Usually, this is caused by too much debt for the company.

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). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Southwestern Energy Co's Interest Coverage for the quarter that ended in Jun. 2022 was 44.44. Southwestern Energy Co's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.32. As of today, Southwestern Energy Co's Altman Z-Score is 0.17.


Competitive Comparison

For the Oil & Gas E&P subindustry, Southwestern Energy Co's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Southwestern Energy Co Financial Strength Distribution

For the Oil & Gas industry and Energy sector, Southwestern Energy Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Southwestern Energy Co's Financial Strength falls into.



Southwestern Energy Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

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

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Southwestern Energy Co's Interest Expense for the months ended in Jun. 2022 was $-48 Mil. Its Operating Income for the months ended in Jun. 2022 was $2,133 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $5,224 Mil.

Southwestern Energy Co's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*2133/-48
=44.44

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Southwestern Energy Co's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(50 + 5224) / 16552
=0.32

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Southwestern Energy Co has a Z-score of 0.17, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.17 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Southwestern Energy Co  (NYSE:SWN) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Southwestern Energy Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Southwestern Energy Co Financial Strength Related Terms

Thank you for viewing the detailed overview of Southwestern Energy Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Southwestern Energy Co Business Description

Southwestern Energy Co logo
Traded in Other Exchanges
Address
10000 Energy Drive, Spring, TX, USA, 77389
Southwestern Energy Co is a US-based independent energy company. It is engaged in exploration, development and production activities, including related natural gas gathering and marketing. The company principally carries its business activities in the United States. The operating segments of the company are the Exploration and Production and Marketing segment. Its Exploration and Production segment is the key revenue driver for the company which includes the revenue derived from the production and sale of natural gas and liquids. The Marketing segment generates revenue through the marketing of both the company and third-party produced natural gas and liquids volumes and through gathering fees associated with the transportation of natural gas to market.
Executives
Giesler Carl Fredrick officer: Executive Vice President & CFO 10000 ENERGY DRIVE P. O. BOX 12359 SPRING TX 77391-2359
Huggins Andrew T officer: VP, Business and Comm Dev 10000 ENERGY DRIVE P. O. BOX 12359 SPRING TX 77391-2359
Kelly John P officer: SVP and Division Head 10000 ENERGY DRIVE P. O. BOX 12359 SPRING TX 77391-2359
Cutright Derek W officer: SVP and Division Head 10000 ENERGY DRIVE P. O. BOX 12359 SPRING TX 77391-2359
Dyson William Q officer: SVP - Operations Services 10000 ENERGY DRIVE P. O. BOX 12359 SPRING TX 77391
Gillenwater Carina L officer: VP, Human Resources and Admin 10000 ENERGY DRIVE P. O. BOX 12359 SPRING TX 77391-2359
Lacy Christopher W officer: VP-General Counsel & Secretary 10000 ENERGY DRIVE P. O. BOX 12359 SPRING TX 77391
Hancock Michael E officer: Vice President and Interim CFO 10000 ENERGY DRIVE P. O. BOX 12359 SPRING TX 77391
Johnson S P Iv director 500 DALLAS STREET SUITE 2300 HOUSTON TX 77002
Walsh Denis Iii director 100 BELLEVUE PARKWAY WILMINGTON DE 19809
Taylor Anne director 800 GESSNER SUITE 500 HOUSTON TX 77024
Kurtz Richard Jason officer: Vice President 10000 ENERGY DRIVE P. O. BOX 12359 SPRING TX 77391
Bott Julian Mark officer: EVP 625 LIBERTY AVENUE C/O EQT MIDSTREAM PARTNERS PITTSBURGH PA 15222
Carrell Clayton A. officer: Executive Vice President & COO 10000 ENERGY DRIVE P. O. BOX 12359 SPRING TX 77391-2359
Cecil James D officer: EVP - Corporate Development 10000 ENERGY DRIVE P. O. BOX 12359 SPRING TX 77391

Southwestern Energy Co Headlines

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