Opportunity: Southwestern Energy’s 2014 capex plans and guidance

Market Realist

Must-know: Investing in Southwestern Energy Company (Part 1 of 8)

Southwestern Energy’s 2014 capex plans and guidance

On December 10, 2014, Southwestern Energy announced its 2014 capex plans and guidance. SWN noted that for 2014, assuming natural gas prices of $3.75 per mcf at Henry Hub, it estimates net income of $635 million to $645 million and net cash from operating activities (excluding changes in working capital) of $1,920 to $1,930 million. SWN forecasts 2014 EBITDA of $1,985 to $1,995 million. Southwestern also provided guidance for sensitivity to natural gas prices. Over 99% of SWN’s production is currently natural gas, so the company is very levered to changes in the commodity’s price.

Capex

In 2014, SWN plans to spend $2,325 million—a 3% increase over its capex spending of $2,250 billion in 2013.

Continue to Part 2

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