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Southwestern Energy Company (SWN - Free Report) reported third-quarter earnings of 32 cents per share, beating the Zacks Consensus Estimate of 30 cents. The bottom line improved from the year-ago quarter’s earnings per share of 24 cents.
Quarterly operating revenues of $4,541 million surpassed the Zacks Consensus Estimate of $1,992 million. The top line also increased from the year-ago quarter’s $1,598 million.
The strong quarterly results can be attributed to higher natural gas production volumes and commodity price realizations.
Total Production
Southwestern’s total third-quarter production increased to 443 billion cubic feet equivalent (Bcfe) from 310 Bcfe a year ago. Gas production was 389 Bcf compared with the year-ago level of 251 Bcf.
Natural gas liquids’ production in the quarter under review was 7,788 thousand barrels (MBbls), lower than the year-ago level of 8,011 MBbls. Yet, oil production declined to 1,173 MBbls from 1,729 MBbls. Almost 87.8% of its volume mix constituted natural gas.
Average Realized Prices
Southwestern’s average realized gas price in the reported quarter, excluding derivatives, increased to $7.42 per thousand cubic feet (Mcf) from $3.18 a year ago. Oil was sold at $84.34 per barrel compared with the year-earlier level of $62.32. Natural gas liquids were sold at $33.33 per barrel, higher than $31.76 in the year-ago period.
Expenses
On a per-Mcfe basis, lease operating expenses were $1.02 compared with the prior-year level of 95 cents. General and administrative expenses per unit of production were 8 cents compared with 9 cents in the year-ago quarter.
Financials
Southwestern’s total capital investment in the third quarter was $237 million.
As of Sep 30, 2022, the company’s cash and cash equivalents were $11 million. Long-term debt was $4,855 million.
Guidance
For fourth quarter of this year, Southwestern is projecting total production in the band of 417 Bcfe to 437 Bcfe.
Being a midstream energy player, Magellan Midstream’s business model is less exposed to volatility in oil and gas prices. In fact, contributions from core fee-based transportation and terminals activities have aided MMP’s results in the third quarter of this year.
In the core of gas-rich Marcellus and Utica Shales, EQT Corporation has a strong foothold. Being a leading producer of natural gas, EQT is benefiting from high natural gas prices. For 2022, it is likely to witness earnings growth of 371.7%.
Being a leading player in liquefied natural gas across the globe, Shell’s business prospects seem bright. In the energy transition front, it is playing a crucial role, setting an ambitious goal of becoming a net-zero-emissions energy business by 2050 or before. For 2022, SHEL is likely to see earnings growth of almost 115%.
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Southwestern's (SWN) Q3 Earnings & Revenues Beat Estimates
Southwestern Energy Company (SWN - Free Report) reported third-quarter earnings of 32 cents per share, beating the Zacks Consensus Estimate of 30 cents. The bottom line improved from the year-ago quarter’s earnings per share of 24 cents.
Quarterly operating revenues of $4,541 million surpassed the Zacks Consensus Estimate of $1,992 million. The top line also increased from the year-ago quarter’s $1,598 million.
The strong quarterly results can be attributed to higher natural gas production volumes and commodity price realizations.
Total Production
Southwestern’s total third-quarter production increased to 443 billion cubic feet equivalent (Bcfe) from 310 Bcfe a year ago. Gas production was 389 Bcf compared with the year-ago level of 251 Bcf.
Natural gas liquids’ production in the quarter under review was 7,788 thousand barrels (MBbls), lower than the year-ago level of 8,011 MBbls. Yet, oil production declined to 1,173 MBbls from 1,729 MBbls. Almost 87.8% of its volume mix constituted natural gas.
Average Realized Prices
Southwestern’s average realized gas price in the reported quarter, excluding derivatives, increased to $7.42 per thousand cubic feet (Mcf) from $3.18 a year ago. Oil was sold at $84.34 per barrel compared with the year-earlier level of $62.32. Natural gas liquids were sold at $33.33 per barrel, higher than $31.76 in the year-ago period.
Expenses
On a per-Mcfe basis, lease operating expenses were $1.02 compared with the prior-year level of 95 cents. General and administrative expenses per unit of production were 8 cents compared with 9 cents in the year-ago quarter.
Financials
Southwestern’s total capital investment in the third quarter was $237 million.
As of Sep 30, 2022, the company’s cash and cash equivalents were $11 million. Long-term debt was $4,855 million.
Guidance
For fourth quarter of this year, Southwestern is projecting total production in the band of 417 Bcfe to 437 Bcfe.
Zacks Rank & Stocks to Consider
Southwestern currently carries a Zacks Rank #3 (Hold). Better-ranked players in the same space include Magellan Midstream Partners , EQT Corporation (EQT - Free Report) and Shell plc (SHEL - Free Report) . 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.
Being a midstream energy player, Magellan Midstream’s business model is less exposed to volatility in oil and gas prices. In fact, contributions from core fee-based transportation and terminals activities have aided MMP’s results in the third quarter of this year.
In the core of gas-rich Marcellus and Utica Shales, EQT Corporation has a strong foothold. Being a leading producer of natural gas, EQT is benefiting from high natural gas prices. For 2022, it is likely to witness earnings growth of 371.7%.
Being a leading player in liquefied natural gas across the globe, Shell’s business prospects seem bright. In the energy transition front, it is playing a crucial role, setting an ambitious goal of becoming a net-zero-emissions energy business by 2050 or before. For 2022, SHEL is likely to see earnings growth of almost 115%.