01. Southwestern Energy Company (NYSE:SWN)
Number of Hedge Fund Holders: 49
Share Price as of September 27: $7.11
Southwestern Energy Company (NYSE:SWN), an independent energy firm, specializes in the exploration, development, and production of natural gas, oil, and natural gas liquids (NGLs) within the United States. The company operates through two segments: Exploration and Production, and Marketing. It primarily develops unconventional gas and oil reservoirs in key U.S. regions, including Pennsylvania, West Virginia, Ohio, and Louisiana. Additionally, Southwestern Energy Company (NYSE:SWN) markets and transports natural gas, oil, and NGLs, catering to LNG exporters, energy firms, utilities, and industrial customers. Established in 1929, the company is headquartered in Spring, Texas.
In Q2 2024, Southwestern Energy Company (NYSE:SWN) recorded a net loss of $608 million or ($0.55) per diluted share. This figure, however, includes non-recurring items such as the company’s full-cost ceiling test impairment. Adjusted for these impacts, Southwestern’s adjusted net income stood at $113 million, or $0.10 per diluted share, reflecting a solid operational performance. The company’s adjusted EBITDA came in at $413 million, showcasing its strong ability to generate cash flow from core operations despite the volatile commodity price environment.
Southwestern Energy Company (NYSE:SWN) production metrics for Q2 2024 were also noteworthy, with total net production reaching 379 Bcfe, translating to an impressive daily average of 4.2 Bcfe. This output includes 3.6 Bcf of gas and 101 MBbls of liquids per day. During the quarter, Southwestern invested $430 million in capital, which facilitated the drilling of 30 wells, the completion of 23 wells, and the placement of 22 wells into sales. The company’s proactive adjustment of its production activities in response to changing commodity prices underscores its operational agility.
As of June 30, 2024, Southwestern Energy Company (NYSE:SWN) had a total debt of $4.2 billion, with a net debt to adjusted EBITDA ratio of 2.1x, highlighting a manageable leverage profile. The firm’s weighted average realized price for Q2 2024 was $1.70 per Mcfe, excluding derivatives, which increased to $2.35 per Mcfe when considering derivative impacts, largely due to a favorable movement in liquids prices.
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