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Southwestern (SWN) Q4 Earnings Miss Estimates, Revenues Beat

Southwestern Energy Company SWN reported fourth-quarter earnings of 26 cents per share, missing the Zacks Consensus Estimate of 30 cents. The bottom line declined from the year-ago quarter’s earnings per share of 31 cents.

Quarterly operating revenues of $3,380 million surpassed the Zacks Consensus Estimate of $2,140 million. The top line also increased from the year-ago quarter’s $2,947 million.

The weak quarterly earnings can be attributed to higher lease operating expenses. This was offset partially by increased natural gas production volumes and commodity price realizations.

Total Production

Southwestern’s total fourth-quarter production increased to 427 billion cubic feet equivalent (Bcfe) from 385 Bcfe a year ago. Gas production was 372 Bcf compared with the year-ago level of 331 Bcf.

Natural gas liquids’ production in the quarter under review was 8,001 thousand barrels (MBbls), higher than the year-ago level of 7,685 MBbls. Yet, oil production declined to 1,187 MBbls from 1,388 MBbls. Almost 87.1% of its volume mix constituted natural gas.

Average Realized Prices

Southwestern’s average realized gas price in the reported quarter, excluding derivatives, increased to $5.47 per thousand cubic feet (Mcf) from $5.10 a year ago. Oil was sold at $74.94 per barrel compared with the year-earlier level of $68.92. Natural gas liquids were sold at $25.52 per barrel, lower than $36.79 in the year-ago period.


On a per-Mcfe basis, lease operating expenses were $1.00 compared with the prior-year level of 96 cents. General and administrative expenses per unit of production were 10 cents compared with 8 cents a year ago.


Southwestern’s total capital investment in the fourth quarter was $537 million.

As of Dec 31, 2022, the company’s cash and cash equivalents were $50 million. Long-term debt was $4,392 million.


For the first quarter of this year, Southwestern projects total production in the band of 398 Bcfe to 410 Bcfe. For 2023, SWN estimates production at 1,650 to 1,725 Bcfe.

Zacks Rank & Stocks to Consider

Southwestern currently carries a Zacks Rank #5 (Strong Sell). Better-ranked players in the energy space include Halliburton Company HAL, PBF Energy PBF and Antero Midstream Corporation AM. All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Halliburton is well known for providing products and services to energy companies.  Over the past 30 days, HAL has witnessed upward earnings estimate revisions for 2023 and 2024.

PBF Energy is a leading independent refiner in North America. PBF has lower exposure to debt capital than composite stocks belonging to the industry.

Antero Midstream generates stable cashflows, banking on its midstream assets involved in gathering, compression, processing and fractionation activities. The properties are centered around the prolific Appalachian Basin. Over the past 30 days, Antero Midstream has witnessed upward earnings estimate revisions for 2023.

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Halliburton Company (HAL) : Free Stock Analysis Report

Southwestern Energy Company (SWN) : Free Stock Analysis Report

Antero Midstream Corporation (AM) : Free Stock Analysis Report

PBF Energy Inc. (PBF) : Free Stock Analysis Report

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