Southwestern Energy Co. expects to produce 418-434 bcfe in this year’s second quarter, including 370-382 bcf of gas, based on current market conditions.
The company, with 768,000 net acres in the Appalachia natural gas basin and 257,000 net acres in the Haynesville following acquisitions last year, is “positioned to help meet the growing global demand for US natural gas as the second largest natural gas-focused producer in the US, already delivering 1.5 bcfd directly to LNG,” said Bill Way, president and chief executive officer, in the company’s Apr. 28 first quarter earnings report.
In separate 2021 transactions, the company acquired GEP Haynesville LLC following its dry gas Haynesville asset acquisition of Indigo Natural Resources LLC (OGJ Online, Nov. 4, 2021; June 2, 2021).
For the year, the company expects total drilling and completions capital of $1.665-1.740 billion with 45% allocated to Appalachia assets and 55% allocated to Haynesville assets. Total capital investments of $1.9-2.0 billion are planned for the year.
First-quarter
The operator recorded a net loss of $2.7 billion for first-quarter 2022, primarily due to the mark-to-market of unsettled derivatives. Excluding this and other one-time items, adjusted net income was $447 million.
Net cash provided by operating activities was $972 million, net cash flow was $861 million, and free cash flow was $317 million.
Total net production for the quarter was 425 bcfe, of which 88% was natural gas, 10% NGLs, and 2% oil, an increase from the 269 bcfe produced in the same quarter in 2021.
Capital investments totaled $544 million for the quarter, consistent with the company’s front-end loaded capital program, with 33 wells drilled, 37 wells completed, and 32 wells placed to sales.
In the first quarter, total production in the company’s Appalachia assets was 259 bcfe, with NGL production of 77,000 b/d and oil production of 14,000 b/d. The company drilled 18 wells, completed 17 wells, and placed 11 wells to sales with an average lateral length of 12,667 ft.
In the Haynesville, total production was 166 bcf. There were 15 wells drilled, 20 wells completed, and 21 wells placed to sales in the quarter with an average lateral length of 8,215 ft.
Southwestern partnered with Project Canary in 2021 to mitigate emissions associated with its natural gas production. At the end of this year’s first quarter, the company has responsibly sourced gas (RSG) well certifications for all Appalachian production. Full Haynesville certification is expected by yearend.
The company decreased overall debt by $508 million, including retiring the company’s March 2022 notes of about $201 million.
