Southwestern Energy posts Q3 net loss of $593 million
Southwestern Energy Co. recorded a net loss for third-quarter 2020 of $593 million, including $361 million of non-cash impairments and a $289 million non-cash loss on unsettled mark-to-market derivatives due to rising prices in future periods. This compares to net income of $49 million in third-quarter 2019.
Adjusted net income, which excludes the non-cash items noted above, was $47 million in the quarter, compared to adjusted net income of $44 million for the prior year period, as decreased revenues due to lower prices were offset by decreased depreciation, depletion and amortization expense.
Total production for the quarter was 221 bcfe, comprised of 78% natural gas, 18% NGLs, and 4% oil. Third quarter production from northeast Appalachia was 121 bcf. There were nine wells drilled, 13 wells completed, and 18 wells put to sales with an average lateral length of 9,455 ft. The 17 wells that were online for at least 30 days were all Lower Marcellus wells, with an average 30-day rate of 15 MMcfd. Southwest Appalachia production for the quarter was 100 bcfe, with liquids production of 87,000 b/d. The company drilled seven wells, completed 12 wells, and placed 12 wells to sales. The average lateral length of wells to sales was 13,206 ft and included six wells in the rich area and six wells in the super rich area. All six of the rich wells were online for at least 30 days and had an average 30-day rate of 25 MMcfed, and all six of the super rich wells were online for at least 30 days and had an average 30-day rate of 14.5 MMcfe/d, including 63% liquids.
Capital investments totaled $223 million for the third quarter.
As of Sept. 30, the company had total debt of $2.47 billion and a cash balance of $95 million. At the end of the third quarter, the company had no borrowings under its revolving credit facility with $203 million in outstanding letters of credit. In October, the company announced its borrowing base had been reaffirmed at $1.8 billion, with commitments to increase to $2.0 billion upon the closing of the Montage acquisition (OGJ Online, Aug. 12, 2020).