We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Southwestern Energy Company declined 6.2% despite reporting better-than-expected first-quarter 2023 results. Rising lease operating expenses and weak gas pricing scenario add to the concerns, although differentiated access to premium markets partially nullifies the negative.
Southwestern reported first-quarter earnings of 31 cents per share, beating the Zacks Consensus Estimate of 27 cents. The bottom line, however, declined from the year-ago quarter’s earnings of 40 cents.
Quarterly operating revenues of $2,118 million surpassed the Zacks Consensus Estimate of $1,895 million. The top line, however, decreased from the year-ago quarter’s $2,943 million.
Total Production
Southwestern’s total first-quarter production decreased to 411 billion cubic feet equivalent (Bcfe) from 425 Bcfe a year ago. Gas production of 353 Bcf declined from the year-ago level of 376 Bcf.
Natural gas liquids’ production in the quarter under review was 8,240 thousand barrels (MBbls), higher than the year-ago level of 6,919 MBbls. Yet, oil production jumped to 1,418 MBbls from 1,270 MBbls. Almost 85.9% of its volume mix constituted natural gas.
Average Realized Prices
Southwestern’s average realized gas price in the reported quarter, excluding derivatives, decreased to $3.22 per thousand cubic feet (Mcf) from $4.50 a year ago. Oil was sold at $65.92 per barrel compared with the year-earlier level of $86.30. Natural gas liquids were sold at $24.39 per barrel, lower than $39.33 in the year-ago period.
Expenses
On a per-Mcfe basis, lease operating expenses were $1.05 compared with the prior-year level of 94 cents. General and administrative expenses per unit of production were 10 cents compared with 9 cents a year ago.
Financials
Southwestern’s total capital investment in the first quarter was $657 million.
As of Mar 31, 2023, the company’s cash and cash equivalents were $3 million. Long-term debt was $3,935 million.
Guidance
For the second quarter, Southwestern projects total production in the band of 408 Bcfe to 420 Bcfe.
Murphy USA is a leading retailer of gasoline. MUSA has more than 1,700 stores and has witnessed upward earnings estimate revisions for 2023 earnings in the past seven days.
Sunoco, a distributor of motor fuel to approximately 10,000 convenience stores, has a stable business model. For this year, SUN has witnessed upward earnings estimate revisions in the past seven days.
Cactus has been aiding its clients in fast-tracking their well drilling and completion activities. The company has also been enabling lower operator emissions per barrel of production. Thus, there has been a significantly lower carbon intensity per well.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Southwestern (SWN) Declines 6% Despite Q1 Earnings Beat
Southwestern Energy Company declined 6.2% despite reporting better-than-expected first-quarter 2023 results. Rising lease operating expenses and weak gas pricing scenario add to the concerns, although differentiated access to premium markets partially nullifies the negative.
Southwestern reported first-quarter earnings of 31 cents per share, beating the Zacks Consensus Estimate of 27 cents. The bottom line, however, declined from the year-ago quarter’s earnings of 40 cents.
Quarterly operating revenues of $2,118 million surpassed the Zacks Consensus Estimate of $1,895 million. The top line, however, decreased from the year-ago quarter’s $2,943 million.
Total Production
Southwestern’s total first-quarter production decreased to 411 billion cubic feet equivalent (Bcfe) from 425 Bcfe a year ago. Gas production of 353 Bcf declined from the year-ago level of 376 Bcf.
Natural gas liquids’ production in the quarter under review was 8,240 thousand barrels (MBbls), higher than the year-ago level of 6,919 MBbls. Yet, oil production jumped to 1,418 MBbls from 1,270 MBbls. Almost 85.9% of its volume mix constituted natural gas.
Average Realized Prices
Southwestern’s average realized gas price in the reported quarter, excluding derivatives, decreased to $3.22 per thousand cubic feet (Mcf) from $4.50 a year ago. Oil was sold at $65.92 per barrel compared with the year-earlier level of $86.30. Natural gas liquids were sold at $24.39 per barrel, lower than $39.33 in the year-ago period.
Expenses
On a per-Mcfe basis, lease operating expenses were $1.05 compared with the prior-year level of 94 cents. General and administrative expenses per unit of production were 10 cents compared with 9 cents a year ago.
Financials
Southwestern’s total capital investment in the first quarter was $657 million.
As of Mar 31, 2023, the company’s cash and cash equivalents were $3 million. Long-term debt was $3,935 million.
Guidance
For the second quarter, Southwestern projects total production in the band of 408 Bcfe to 420 Bcfe.
Zacks Rank & Stocks to Consider
Currently, Southwestern carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Murphy USA Inc. (MUSA - Free Report) , Sunoco LP (SUN - Free Report) and Cactus, Inc. (WHD - Free Report) . While Murphy USA carries a Zacks Rank #2 (Buy), Sunoco and Cactus sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA is a leading retailer of gasoline. MUSA has more than 1,700 stores and has witnessed upward earnings estimate revisions for 2023 earnings in the past seven days.
Sunoco, a distributor of motor fuel to approximately 10,000 convenience stores, has a stable business model. For this year, SUN has witnessed upward earnings estimate revisions in the past seven days.
Cactus has been aiding its clients in fast-tracking their well drilling and completion activities. The company has also been enabling lower operator emissions per barrel of production. Thus, there has been a significantly lower carbon intensity per well.