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Southwestern Energy (SWN) Slides 1.8% Despite Q3 Earnings Beat
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Southwestern Energy Company (SWN - Free Report) declined 1.8% despite reporting strong results for the third quarter of 2021. This reflects that investors are still concerned with coronavirus-induced energy market uncertainty.
The upstream energy firm reported third-quarter earnings of 24 cents per share, beating the Zacks Consensus Estimate by a penny. The bottom line improved from the year-ago quarter’s earnings per share of 8 cents.
Quarterly operating revenues of $1,598 million outpaced the Zacks Consensus Estimate of $1,015 million and the year-ago figure of $527 million.
The strong quarterly results were owing to higher gas equivalent production and commodity prices.
Southwestern Energy Company Price, Consensus and EPS Surprise
The company’s total third-quarter production increased to 310 billion cubic feet equivalent (Bcfe) from 221 Bcfe a year ago. Gas production in the reported quarter was 251 Bcf compared with the year-ago level of 173 Bcf.
Natural gas liquids’ production in the quarter under review was 8,011 thousand barrels (MBbls), higher than the year-ago level of 6,687 MBbls. Oil production increased to 1,729 MBbls from 1,294 MBbls in the year-ago quarter. Almost 81% 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 $3.18 per thousand cubic feet (Mcf) from $1.09 a year ago. Oil was sold at $62.32 per barrel compared with the year-earlier level of $29.46. Natural gas liquids were sold at $31.76 per barrel, significantly higher than $10.34 in the year-ago period.
Expenses
On a per-Mcfe basis, lease operating expenses were 95 cents compared with the prior-year level of 91 cents. General and administrative expenses per unit of production were 9 cents versus 12 cents in the year-ago quarter.
Financials
Southwestern’s total capital investment in the third quarter was $291 million.
As of Sep 30, 2021, the company’s cash and cash equivalents were $12 million. Long-term debt was $4,036 million.
Acquisition Deal
In a separate release the company announced a definitive agreement to acquire GEP Haynesville, LLC – the third-largest private producer in the prolific Haynesville sale play. The deal is valued at $1.85 billion.
Zacks Rank & Stocks to Consider
The company carries a Zacks Rank #3 (Hold). A few better-ranked stocks from the energy space include Whiting Petroleum Corporation , Comstock Resources, Inc. (CRK - Free Report) and APA Corporation (APA - Free Report) . While Comstock carries a Zacks Rank #2 (Buy), while Whiting Petroleum and APA Corporation sport a Zacks Rank #1 (Strong Buy). 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.
Comstock is expected to witness earnings growth of 378.3% in 2021.
APA Corporation has seen upward earnings estimate revisions for 2021 in the past 30 days.
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Southwestern Energy (SWN) Slides 1.8% Despite Q3 Earnings Beat
Southwestern Energy Company (SWN - Free Report) declined 1.8% despite reporting strong results for the third quarter of 2021. This reflects that investors are still concerned with coronavirus-induced energy market uncertainty.
The upstream energy firm reported third-quarter earnings of 24 cents per share, beating the Zacks Consensus Estimate by a penny. The bottom line improved from the year-ago quarter’s earnings per share of 8 cents.
Quarterly operating revenues of $1,598 million outpaced the Zacks Consensus Estimate of $1,015 million and the year-ago figure of $527 million.
The strong quarterly results were owing to higher gas equivalent production and commodity prices.
Southwestern Energy Company Price, Consensus and EPS Surprise
Southwestern Energy Company price-consensus-eps-surprise-chart | Southwestern Energy Company Quote
Total Production
The company’s total third-quarter production increased to 310 billion cubic feet equivalent (Bcfe) from 221 Bcfe a year ago. Gas production in the reported quarter was 251 Bcf compared with the year-ago level of 173 Bcf.
Natural gas liquids’ production in the quarter under review was 8,011 thousand barrels (MBbls), higher than the year-ago level of 6,687 MBbls. Oil production increased to 1,729 MBbls from 1,294 MBbls in the year-ago quarter. Almost 81% 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 $3.18 per thousand cubic feet (Mcf) from $1.09 a year ago. Oil was sold at $62.32 per barrel compared with the year-earlier level of $29.46. Natural gas liquids were sold at $31.76 per barrel, significantly higher than $10.34 in the year-ago period.
Expenses
On a per-Mcfe basis, lease operating expenses were 95 cents compared with the prior-year level of 91 cents. General and administrative expenses per unit of production were 9 cents versus 12 cents in the year-ago quarter.
Financials
Southwestern’s total capital investment in the third quarter was $291 million.
As of Sep 30, 2021, the company’s cash and cash equivalents were $12 million. Long-term debt was $4,036 million.
Acquisition Deal
In a separate release the company announced a definitive agreement to acquire GEP Haynesville, LLC – the third-largest private producer in the prolific Haynesville sale play. The deal is valued at $1.85 billion.
Zacks Rank & Stocks to Consider
The company carries a Zacks Rank #3 (Hold). A few better-ranked stocks from the energy space include Whiting Petroleum Corporation , Comstock Resources, Inc. (CRK - Free Report) and APA Corporation (APA - Free Report) . While Comstock carries a Zacks Rank #2 (Buy), while Whiting Petroleum and APA Corporation sport a Zacks Rank #1 (Strong Buy). 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.
Comstock is expected to witness earnings growth of 378.3% in 2021.
APA Corporation has seen upward earnings estimate revisions for 2021 in the past 30 days.