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Southwestern (SWN) Slips 3% as Q2 Earnings Miss Estimates

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Southwestern Energy Company’s SWN shares are down 2.9% since it reported lower-than-expected earnings for the second quarter on Jul 29. The quarterly earnings were affected by higher lease operating expenses, partially offset by higher gas prices.

The company reported second-quarter earnings of 19 cents per share, missing the Zacks Consensus Estimate of 22 cents. The bottom line, however, improved from the year-ago quarter’s break-even earnings per share.

Quarterly operating revenues of $1,050 million outpaced the Zacks Consensus Estimate of $885 million and the year-ago figure of $410 million.

Southwestern Energy Company Price, Consensus and EPS Surprise

Southwestern Energy Company Price, Consensus and EPS Surprise
Southwestern Energy Company Price, Consensus and EPS Surprise

Southwestern Energy Company price-consensus-eps-surprise-chart | Southwestern Energy Company Quote

Total Production

The company’s total second-quarter production increased to 276 billion cubic feet equivalent (Bcfe) from 201 Bcfe a year ago. Gas production in the reported quarter was 219 Bcf compared with the year-ago level of 158 Bcf.

Natural gas liquids’ production in the quarter under review was 7,666 thousand barrels (MBbls), higher than the year-ago level of 6,111 MBbls. Oil production increased to 1,831 MBbls from 1,083 MBbls in the year-ago quarter. Almost 79.3% of its volume mix constituted natural gas.

Average Realized Prices

The company’s average realized gas price in the reported quarter, excluding derivatives, increased to $1.92 per thousand cubic feet (Mcf) from 98 cents a year ago. Oil was sold at $57.50 per barrel compared with the year-earlier level of $15.69. Natural gas liquids were sold at $23.24 per barrel, significantly higher than $6.43 in the year-ago period.

Expenses

On a per-Mcfe basis, lease operating expenses were 94 cents compared with the prior-year level of 91 cents. General and administrative expenses per unit of production were 11 cents versus 14 cents in the year-ago quarter.

Total operating expenses in the reported quarter were $259 million, up from the year-ago level of $182 million.

Financials

Southwestern’s total capital investment in the second quarter was $493 million.

As of Jun 30, 2021, the company’s cash and cash equivalents were $2 million. Long-term debt was $2,814 million.

Zacks Rank & Other Stocks to Consider

The company currently sports a Zacks Rank #1 (Strong Buy). Other prospective players in the energy space include Whiting Petroleum Corporation WLL, Continental Resources, Inc. CLR and PDC Energy, Inc. PDCE. All the stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Continental is expected to witness earnings growth of 256% in 2021.

PDC Energy is likely to see earnings growth of 111.8% in 2021.


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Southwestern Energy Company (SWN) : Free Stock Analysis Report

Continental Resources, Inc. (CLR) : Free Stock Analysis Report

PDC Energy, Inc. (PDCE) : Free Stock Analysis Report

Whiting Petroleum Corporation (WLL) : Free Stock Analysis Report

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