Southwestern Energy Company’s (SWN - Free Report) 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.
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 , Continental Resources, Inc. and PDC Energy, Inc. . 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’s (SWN - Free Report) 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.
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 , Continental Resources, Inc. and PDC Energy, Inc. . 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.
Free Report – The Bitcoin Profit Phenomenon
Zacks Investment Research has released a Special Report to help you pursue massive profits from the world’s first and largest decentralized form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%.
Zacks predicts another significant surge. Click below for Bitcoin: A Tumultuous Yet Resilient History.
Download Now – Today It’s FREE >>
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