Southwestern Energy Co. set a 2022 capital expenditures budget of $1.90-$2.0 billion, nearly double last year’s $1.1 billion, and expects to maintain full year production of 4.7 bcfed (4.1 bcfd natural gas, 90,000 b/d liquids).
The operator expects to split the budget 45% Appalachia, 55% Haynesville. The company estimates 130-140 gross operated wells to sales including 70-75 in the Haynesville with an average lateral length over 8,000 ft and 60-65 in Appalachia with an average lateral length over 14,000 ft.
Fourth-quarter 2021
On Dec. 31, 2021, the company closed its acquisition of GEP Hayneville to become the largest Haynesville producer, and second largest US natural gas producer (OGJ Online, Nov. 4, 2021).
“Our new Haynesville assets complement our premium Appalachia position by deepening the Company’s inventory, expanding market optionality and reach, including globally through the LNG Corridor, while lowering the risk profile of the enterprise,” said Bill Way, president and chief executive officer.
For fourth-quarter 2021, the company recorded net income of $2.4 billion, including a positive $2.0 billion non-cash change in unsettled mark to market derivatives. This compares to a net loss of $92 million in fourth-quarter 2020. Total production for the quarter was 385 bcfe (86% natural gas, 12% NGLs, 2% oil). Capital investments in the quarter were $292 million.
In the quarter, total Appalachia production was 283 bcfe, with NGL production of 84,000 b/d, and oil production of 15,000 b/d. The company drilled 13 wells, completed 11 wells, and placed 11 wells to sales with an average lateral length of 17,129 ft.
In the fourth quarter, Haynesville production was 102 bcf. There were 11 wells drilled, 11 wells completed, and 10 wells placed to sales in the quarter with an average lateral length of 6,875 ft.
Full-year 2021
For the full year, the company had a net loss of $25 million, compared to a net loss of $3.1 billion in 2020. In 2021, Southwestern recorded a $944 million non-cash loss on unsettled derivatives. Excluding these non-cash and other one-time items, adjusted net income for 2021 was $831 million, compared to $221 million in 2020. Production totaled 1.24 tcfe for the year. Full year capital investment was $1.108 billion. The company brought 93 wells to sales, drilled 87 wells, and completed 93 wells during the year.
In 2021, Appalachia’s total production was 1.1 tcfe, including 103,000 b/d of liquids. During 2021, the company drilled 74 wells, completed 78 wells, and placed 78 wells to sales, with an average lateral length of 14,332 ft. At yearend, the company had 20 drilled but uncompleted wells in Appalachia.
Production for the year was 132 bcf in Haynesville. The company drilled 13 wells, completed 15 wells, and brought 15 wells to sales following the close of the Indigo Natural Resources acquisition, with 29 drilled but uncompleted wells at yearend, including those acquired from GEP Haynesville.
