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Southwestern (SWN) Stock Gains 10.5% Since Q4 Earnings Beat
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Southwestern Energy Company’s (SWN - Free Report) stock has jumped 10.5% since it reported strong results for the fourth quarter of 2021.
The upstream energy firm reported fourth-quarter earnings of 31 cents per share, beating the Zacks Consensus Estimate of 28 cents. The bottom line improved from the year-ago quarter’s earnings per share of 18 cents.
Quarterly operating revenues of $2,947 million outpaced the Zacks Consensus Estimate of $1,274 million. The top line also increased from the year-ago figure of $779 million.
The strong quarterly results can be attributed to higher gas-equivalent production volumes and commodity price realizations.
Southwestern Energy Company Price, Consensus and EPS Surprise
The company’s total fourth-quarter production increased to 385 billion cubic feet equivalent (Bcfe) from 257 Bcfe a year ago. Gas production in the reported quarter was 331 Bcf compared with the year-ago level of 207 Bcf.
Natural gas liquids’ production in the quarter under review was 7,685 thousand barrels (MBbls), higher than the year-ago level of 7,001 MBbls. Oil production increased to 1,388 MBbls from 1,365 MBbls in the year-ago quarter. Almost 86% 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 $5.10 per thousand cubic feet (Mcf) from $1.67 a year ago. Oil was sold at $68.92 per barrel compared with the year-earlier level of $31.97. Natural gas liquids were sold at $36.79 per barrel, significantly higher than $15.28 in the year-ago period.
Expenses
On a per-Mcfe basis, lease operating expenses were 96 cents compared with the prior-year level of 92 cents. General and administrative expenses per unit of production were 8 cents versus 11 cents in the year-ago quarter.
Financials
Southwestern’s total capital investment in the fourth quarter was $292 million.
As of Dec 31, 2021, the company’s cash and cash equivalents were $28 million. Long-term debt was $5,201 million.
Reserves
As of Dec 31, 2021, the company’s total proved reserves increased to 21.1 Tcfe, indicating a year-over-year increase of 76%. Of the total proved reserves, 82% was natural gas, while the rest was liquids.
Guidance
For 2022, Southwestern expects total production of 1,683-1,723 Bcfe, indicating an increase from 1,240 Bcfe reported in 2021. Gas production is expected to be 1,487-1,517 Bcf for the year.
For the first quarter of 2022, total production is expected to be 411-426 Bcfe, consisting of natural gas of 365-377 Bcf.
For the year, total capital investments are estimated to be $1,900-$2,000 million compared with $1,108 million reported in 2021. Lease operating expenses for 2022 are estimated to be 92-96 cents per Mcfe, the mid-point of which is lower than the 2021 reported figure of 95 cents.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Meanwhile, investors interested in the energy space could look at better options like Centennial Resource Development, Inc. , SM Energy Company (SM - Free Report) and Marathon Oil Corporation (MRO - Free Report) . All the companies sport a Zacks Rank #1 (Strong Buy) at present.
Centennial Resource reported fourth-quarter 2021 adjusted earnings of 39 cents per share, beating the Zacks Consensus Estimate of 30 cents. CDEV announced its proved reserves for 2021-end at 305 MMBoe, representing growth from 299 MMBoe at the end of the prior year.
Centennial Resource is expected to see earnings growth of 94.2% in 2022. CDEV announced the launch of its stock repurchase program of $350 million. The authorization of the plan is for two years.
SM Energy reported fourth-quarter adjusted earnings of $1.14 per share, beating the Zacks Consensus Estimate of 82 cents. At 2021-end, SM’s proved reserves were 492 MMBoe, which increased 22% year over year.
SM Energy is expected to see earnings growth of 257.8% in 2022. SM currently has a Zacks Style Score of A for Growth, and B for Value and Momentum. As of Dec 31, 2021, the company had cash and cash equivalents of $332.7 million.
Marathon Oil reported a fourth-quarter 2021 adjusted net income per share of 77 cents, comprehensively beating the Zacks Consensus Estimate of 55 cents. As of 2021-end, MRO had 1,106 million oil-equivalent barrels in net proved reserves, suggesting a year-over-year increase of 14%.
Marathon Oil’s earnings for 2022 are expected to soar 83.4% year over year. In good news for investors, the company is using the excess cash from a supportive environment to reward them with dividends and buybacks. As part of that, MRO has executed $1 billion of share repurchases since October (with $1.7 billion remaining under the current authorization) and recently announced a dividend hike.
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Southwestern (SWN) Stock Gains 10.5% Since Q4 Earnings Beat
Southwestern Energy Company’s (SWN - Free Report) stock has jumped 10.5% since it reported strong results for the fourth quarter of 2021.
The upstream energy firm reported fourth-quarter earnings of 31 cents per share, beating the Zacks Consensus Estimate of 28 cents. The bottom line improved from the year-ago quarter’s earnings per share of 18 cents.
Quarterly operating revenues of $2,947 million outpaced the Zacks Consensus Estimate of $1,274 million. The top line also increased from the year-ago figure of $779 million.
The strong quarterly results can be attributed to higher gas-equivalent production volumes and commodity price realizations.
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 fourth-quarter production increased to 385 billion cubic feet equivalent (Bcfe) from 257 Bcfe a year ago. Gas production in the reported quarter was 331 Bcf compared with the year-ago level of 207 Bcf.
Natural gas liquids’ production in the quarter under review was 7,685 thousand barrels (MBbls), higher than the year-ago level of 7,001 MBbls. Oil production increased to 1,388 MBbls from 1,365 MBbls in the year-ago quarter. Almost 86% 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 $5.10 per thousand cubic feet (Mcf) from $1.67 a year ago. Oil was sold at $68.92 per barrel compared with the year-earlier level of $31.97. Natural gas liquids were sold at $36.79 per barrel, significantly higher than $15.28 in the year-ago period.
Expenses
On a per-Mcfe basis, lease operating expenses were 96 cents compared with the prior-year level of 92 cents. General and administrative expenses per unit of production were 8 cents versus 11 cents in the year-ago quarter.
Financials
Southwestern’s total capital investment in the fourth quarter was $292 million.
As of Dec 31, 2021, the company’s cash and cash equivalents were $28 million. Long-term debt was $5,201 million.
Reserves
As of Dec 31, 2021, the company’s total proved reserves increased to 21.1 Tcfe, indicating a year-over-year increase of 76%. Of the total proved reserves, 82% was natural gas, while the rest was liquids.
Guidance
For 2022, Southwestern expects total production of 1,683-1,723 Bcfe, indicating an increase from 1,240 Bcfe reported in 2021. Gas production is expected to be 1,487-1,517 Bcf for the year.
For the first quarter of 2022, total production is expected to be 411-426 Bcfe, consisting of natural gas of 365-377 Bcf.
For the year, total capital investments are estimated to be $1,900-$2,000 million compared with $1,108 million reported in 2021. Lease operating expenses for 2022 are estimated to be 92-96 cents per Mcfe, the mid-point of which is lower than the 2021 reported figure of 95 cents.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Meanwhile, investors interested in the energy space could look at better options like Centennial Resource Development, Inc. , SM Energy Company (SM - Free Report) and Marathon Oil Corporation (MRO - Free Report) . All the companies sport a Zacks Rank #1 (Strong Buy) at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Centennial Resource reported fourth-quarter 2021 adjusted earnings of 39 cents per share, beating the Zacks Consensus Estimate of 30 cents. CDEV announced its proved reserves for 2021-end at 305 MMBoe, representing growth from 299 MMBoe at the end of the prior year.
Centennial Resource is expected to see earnings growth of 94.2% in 2022. CDEV announced the launch of its stock repurchase program of $350 million. The authorization of the plan is for two years.
SM Energy reported fourth-quarter adjusted earnings of $1.14 per share, beating the Zacks Consensus Estimate of 82 cents. At 2021-end, SM’s proved reserves were 492 MMBoe, which increased 22% year over year.
SM Energy is expected to see earnings growth of 257.8% in 2022. SM currently has a Zacks Style Score of A for Growth, and B for Value and Momentum. As of Dec 31, 2021, the company had cash and cash equivalents of $332.7 million.
Marathon Oil reported a fourth-quarter 2021 adjusted net income per share of 77 cents, comprehensively beating the Zacks Consensus Estimate of 55 cents. As of 2021-end, MRO had 1,106 million oil-equivalent barrels in net proved reserves, suggesting a year-over-year increase of 14%.
Marathon Oil’s earnings for 2022 are expected to soar 83.4% year over year. In good news for investors, the company is using the excess cash from a supportive environment to reward them with dividends and buybacks. As part of that, MRO has executed $1 billion of share repurchases since October (with $1.7 billion remaining under the current authorization) and recently announced a dividend hike.