We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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 (SWN) Q4 Earnings Miss, Revenues Beat
Read MoreHide Full Article
Independent natural gas operator, Southwestern Energy Company (SWN - Free Report) reported fourth-quarter 2016 adjusted earnings of 8 cents per share that missed the Zacks Consensus Estimate of 12 cents. In the prior-year quarter, the company incurred loss of 2 cents per share. The improvement was attributable to higher oil and gas price realizations.
Quarterly operating revenues of $684 million surpassed the Zacks Consensus Estimate of $682 million but decreased from $687 million in the fourth quarter of 2015.
For 2016, the company incurred loss of 1 cent per share. The Zacks Consensus Estimate was of a breakeven. The reported figure was narrower than the year-ago loss of 2 cents per share. Revenues of $2,436.0 million missed the Zacks Consensus Estimate of $2,440.0 million and decreased from the year-ago level of $3,133.0 million.
Production and Realized Prices
In fourth quarter, the company’s oil and gas production declined 18.9% year over year to 202 billion cubic feet equivalent (Bcfe) due to limited activity level in 2016. This, in turn, was owing to lower natural gas prices.
The company’s average realized gas price for the quarter, including hedges, was $2.07 per thousand cubic feet (Mcf). The reported figure was flat with the year-ago period. Oil was sold at $41.18 per barrel compared with the year-earlier level of $27.36 per barrel. Natural gas liquids were sold at $12.08 per barrel as against $7.62 in the year-ago period.
Segmental Highlights
Operating income from the company’s Exploration and Production (E&P) segment was $82 million. The reported figure compared favorably with an operating loss of $2,633 million in the fourth quarter of 2015. The quarterly income was primarily driven by higher realized liquids prices and decreased operating costs and expenses. This was partially offset by lower production volumes.
On a per-Mcfe basis, lease operating expenses were 87 cents compared with the prior-year quarter level of 91 cents. However, general and administrative expenses per unit of production increased to 27 cents from 20 cents in the prior-year quarter.
Operating income for the company’s Midstream Services segment was $40 million for the fourth quarter compared with $72 million for the corresponding quarter in 2015. As of Dec 31, 2016, the company’s midstream segment had gathered approximately 138Bcf per day.
Capex and Debt
The company’s total capital expenditure during 2016 was approximately $684 million. As of Dec 31, 2016, long-term debt was $4,612.0 million, representing a debt-to-capitalization ratio of 83.4%.
Southwestern Energy Company Price, Consensus and EPS Surprise
Southwestern Energy carries a Zacks Rank #3 (Hold). Some better-ranked players in the same space include Delek Logistics Partners, LP (DKL - Free Report) and Sunrun Inc. (RUN - Free Report) . Both these stocks sport a Zacks Rank #1 (Strong Buy). Another stock from the same space is W&T Offshore Inc. (WTI - Free Report) , which holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Delek Logistics Partners posted a negative earnings surprise of 25.45% in the preceding quarter. It had an average negative earnings surprise of 11.32% in the four trailing quarters.
Sunrun posted a positive earnings surprise of 137.21% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 134.71%.
W&T Offshore posted a positive earnings surprise of 44.19% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 31.49%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Southwestern Energy (SWN) Q4 Earnings Miss, Revenues Beat
Independent natural gas operator, Southwestern Energy Company (SWN - Free Report) reported fourth-quarter 2016 adjusted earnings of 8 cents per share that missed the Zacks Consensus Estimate of 12 cents. In the prior-year quarter, the company incurred loss of 2 cents per share. The improvement was attributable to higher oil and gas price realizations.
Quarterly operating revenues of $684 million surpassed the Zacks Consensus Estimate of $682 million but decreased from $687 million in the fourth quarter of 2015.
For 2016, the company incurred loss of 1 cent per share. The Zacks Consensus Estimate was of a breakeven. The reported figure was narrower than the year-ago loss of 2 cents per share. Revenues of $2,436.0 million missed the Zacks Consensus Estimate of $2,440.0 million and decreased from the year-ago level of $3,133.0 million.
Production and Realized Prices
In fourth quarter, the company’s oil and gas production declined 18.9% year over year to 202 billion cubic feet equivalent (Bcfe) due to limited activity level in 2016. This, in turn, was owing to lower natural gas prices.
The company’s average realized gas price for the quarter, including hedges, was $2.07 per thousand cubic feet (Mcf). The reported figure was flat with the year-ago period. Oil was sold at $41.18 per barrel compared with the year-earlier level of $27.36 per barrel. Natural gas liquids were sold at $12.08 per barrel as against $7.62 in the year-ago period.
Segmental Highlights
Operating income from the company’s Exploration and Production (E&P) segment was $82 million. The reported figure compared favorably with an operating loss of $2,633 million in the fourth quarter of 2015. The quarterly income was primarily driven by higher realized liquids prices and decreased operating costs and expenses. This was partially offset by lower production volumes.
On a per-Mcfe basis, lease operating expenses were 87 cents compared with the prior-year quarter level of 91 cents. However, general and administrative expenses per unit of production increased to 27 cents from 20 cents in the prior-year quarter.
Operating income for the company’s Midstream Services segment was $40 million for the fourth quarter compared with $72 million for the corresponding quarter in 2015. As of Dec 31, 2016, the company’s midstream segment had gathered approximately 138Bcf per day.
Capex and Debt
The company’s total capital expenditure during 2016 was approximately $684 million. As of Dec 31, 2016, long-term debt was $4,612.0 million, representing a debt-to-capitalization ratio of 83.4%.
Southwestern Energy Company Price, Consensus and EPS Surprise
Southwestern Energy Company Price, Consensus and EPS Surprise | Southwestern Energy Company Quote
Zacks Rank
Southwestern Energy carries a Zacks Rank #3 (Hold). Some better-ranked players in the same space include Delek Logistics Partners, LP (DKL - Free Report) and Sunrun Inc. (RUN - Free Report) . Both these stocks sport a Zacks Rank #1 (Strong Buy). Another stock from the same space is W&T Offshore Inc. (WTI - Free Report) , which holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Delek Logistics Partners posted a negative earnings surprise of 25.45% in the preceding quarter. It had an average negative earnings surprise of 11.32% in the four trailing quarters.
Sunrun posted a positive earnings surprise of 137.21% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 134.71%.
W&T Offshore posted a positive earnings surprise of 44.19% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 31.49%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>