Top-News
Donnerstag,
08.02.2018 14:30
von
PR Newswire
| Aufrufe: 126
Southwestern Energy Announces 2017 Highlights And 2018 Guidance
pixabay.com
PR Newswire
HOUSTON, Feb. 8, 2018
HOUSTON, Feb. 8, 2018 /PRNewswire/ -- Southwestern Energy Company (NYSE: SWN) today announced its 2017 highlights and its 2018 guidance based on a $2.85 NYMEX gas price. The Company took on commodity price challenges and delivered on commitments made in its 2017 guidance.
2017 highlights include:
- Delivered on commitment to invest within net cash flow (supplemented by the remaining $200 million from the 2016 equity offering as previously disclosed);
- Total net production of 897 Bcfe, including 578 Bcfe from the Appalachian Basin and 316 Bcf from the Fayetteville Shale;
- Comprised of 89% natural gas and 11% NGLs and condensate;
- Record Appalachian Basin gross operated exit rate production of 2.35 Bcfe per day, a 40% increase compared to December 2016;
- Increase in estimated pre-tax PV10 reserve value to approximately $5.8 billion, up 247% compared to year-end 2016, including $3.8 billion from the Appalachian Basin;
- Preliminary total proved reserves(1) of approximately 14.8 Tcfe, including 11.1 Tcfe from the Appalachian Basin, up 181% and 393%, respectively, compared to 2016;
- Comprised of 75% natural gas and 25% NGLs and condensate at year-end 2017, compared to 93% and 7% in 2016, respectively;
- 46% proved undeveloped at year-end 2017; and
- Further optimized completion techniques leading to enhanced well productivity and economics in the Appalachian Basin.
Detailed information on these and other 2017 results will appear in the Company's earnings release and annual report on Form 10-K to be issued on March 1, 2018.
2018 guidance highlights include:
- Capital investments of $1.15 to $1.25 billion, funded entirely by net cash flow;
- Average net production of 930 to 965 Bcfe, a 6% increase (using midpoints) over the 2017 production of 897 Bcfe;
- Appalachian Basin net production of 671 to 698 Bcfe, an 18% increase over 2017, including a 30% increase in Southwest Appalachia;
- NGLs and condensate production increase to approximately 130 Bcfe, an increase of 31% compared to 2017;
- Improved capital efficiency demonstrated by investing almost $100 million less in drilling and completion activities while delivering both higher value and production growth versus the 2017 program;
- Northeast Appalachia expected to generate positive cash flow from operations, net of capital for the first time, delivering approximately $150 million;
- Total Company and Northeast Appalachia gas differentials expected to improve by approximately $0.10 per Mcf and $0.25 per Mcf, respectively; and
- Hedge protection on approximately 69% of projected 2018 natural gas volumes at an average swap or purchased put strike price of $2.97 per Mcf.
(1) Audited by independent petroleum engineering firm
In a separate press release issued today, the Company announced its intent to actively pursue strategic alternatives for the Fayetteville Shale E&P and related midstream gathering assets along with other initiatives. The 2018 guidance excludes any impact from the strategic actions announced today in that press release.
"Our commitment to value creation is clearly evident with our 2018 plan," said Bill Way, President and Chief Executive Officer of Southwestern Energy. "We are delivering more with less, benefiting from the capital efficiency gains that we have captured over the past two years. We will continue to invest within net cash flow and maintain capital discipline by prioritizing investments to those projects that are expected to generate the highest returns for our shareholders."
2018 Guidance Summary
Across the portfolio, the Company continues to identify opportunities to expand margins and increase capital efficiency, enhancing the value of its inventory. During 2018, the Company plans to invest $1,130 million to $1,215 million in its E&P business, which includes $775 million to $815 million for drilling and completion activities, $210 million to $230 million for capitalized interest and expenses, $65 million to $75 million in water infrastructure and $80 million to $95 million for land, seismic and other items.
The 2018 capital budget will once again prioritize investments generating the highest returns for shareholders and will focus on the Appalachian Basin, where the Company plans to begin the year operating four rigs and utilizing three completion crews in Southwest Appalachia and two rigs and two completion crews in Northeast Appalachia. The 2018 program includes drilling 100 to 120 wells, completing 105 to 125 wells and placing 125 to 145 wells to sales.
Southwest Appalachia – In Southwest Appalachia, based on current liquids realizations and improving economics, the Company plans to target the liquids rich portion of the play, which is expected to increase total production by 30% (using midpoints), with liquids representing 54% of total production in 2018. The increase in liquids realizations is expected to generate a price uplift of approximately $0.80 per Mcfe. This increase, coupled with reduced processing rates, is expected to further improve cash margins. The Company plans to allocate approximately $490 million to $510 million in discretionary capital to Southwest Appalachia, with approximately $430 million to $450 million allocated to drilling and completions activities. Approximately $60 million is planned to be used for land and seismic activity. The Company expects the average 2018 completed well cost for the wells placed to sales to be $7.6 million per well with approximately 7,200 foot average horizontal lateral length. As the Company targets longer lateral lengths, the Company's drilled lateral lengths are expected to increase throughout the year, averaging approximately 8,500 feet for the second half of 2018. Additionally, the Company commenced a water infrastructure project in late 2017 and plans to invest approximately $65 million to $75 million in capital in 2018. While this project does not directly provide production growth, it is expected to reduce well costs by approximately $500 thousand per well beginning in late 2018 and lower the breakeven gas price threshold by $0.25 per Mcf. This water project will be utilized for future development of the rich and lean gas Marcellus wells, along with dry gas Utica development.
Northeast Appalachia – The 2018 program plans to focus primarily on its core area in Susquehanna County while further developing its Tioga County acreage. The Company plans to allocate approximately $340 million to $360 million in discretionary capital to Northeast Appalachia, with approximately $320 million to $340 million allocated to drilling and completions and the remaining $20 million allocated to land and other capital. The Company expects the average 2018 completed well cost for the wells placed to sales to be $6.6 million per well with approximately 7,100 foot average horizontal lateral length.
As additional pipeline capacity is added in the region, Southwestern's transportation portfolio is positioned to capture materially improving basis differentials without significant increases in transportation charges, resulting in a $0.25 per Mcf improvement in Northeast Appalachia margins. As a result, the Company expects to generate approximately $150 million in positive cash flow from operations, net of capital, in 2018 while growing production 13% (using midpoints), capitalizing on the operational momentum created during 2017.
Fayetteville – The Company continues to identify additional opportunities to realize incremental value from these assets. Along with advancing its learnings and monitoring the longer term results from the Moorefield wells drilled in 2017, the Company plans in 2018 to further test additional redevelopment concepts in which the latest generation drilling and completion techniques are utilized in legacy development areas of the Fayetteville. The Company has announced an initiative to actively pursue strategic alternatives for the Fayetteville Shale E&P and related midstream gathering assets.
2018 Budget Overview
The following tables provide detailed information and guidance for 2018 based on an average natural gas price of $2.85 per Mcf and an average oil price of $60.00 per barrel.
| | |
| | 2018 Guidance |
| in millions (except per share amounts, production and well count) | $2.85 / $60.00 |
| Capital investments: | |
| Discretionary capital | $935 - $1,015 |
| Capitalized interest and expenses | $215 - $235 |
| Total capital investments | $1,150 - $1,250 |
| | |
| Net cash flow (1) | $1,150 - $1,250 |
| | |
| Net income (2) | $350 - $450 |
| Share Count(3) | 585 - 595 |
| Diluted earnings per share | $0.59 - $0.76 |
| | |
| Adjusted EBITDA (1) | $1,250 - $1,350 |
| | |
| Production (Bcfe) | 930 – 965 |
| Wells drilled | 100 – 120 |
| Wells completed | 105 – 125 |
| Wells placed to sales | 125 – 145 |
| Ending DUC inventory | 35 – 45 |
| |
| (1) This represents a Non-GAAP measure; see "Explanation and Reconciliation of Non-GAAP Financial Measures" below. |
| (2) Assumes 24.5% income tax rate and no unsettled derivative gain/losses. |
| (3) Mandatory preferred shares converted on January 12, 2018 to approximately 75 million shares. |
| Estimated Production and Capital Investments in 2018 | ||||
| | | | | |
| | 2018 Guidance | |||
| | Production | | Capital | |
| | (Bcfe) | | ($ in millions) | |
| Northeast Appalachia | 440 – 454 | | $ | 340 – 360 |
| Southwest Appalachia | 231 – 244 | | | 490 – 510 |
| Fayetteville Shale | 258 – 265 | | | 15 – 25 |
| Southwest Appalachia water project | | | | 65 – 75 |
| Other E&P | 1 – 2 | | | 10 – 15 |
| Midstream Services | | | | 5 – 10 |
| Corporate | | | | 10 – 20 |
| Capitalized interest | | | | 115 – 125 |
| Capitalized expense | | | | 100 – 110 |
| Total | 930 - 965 | | $ | 1,150 - 1,250 |
| Estimated Production by Quarter in 2018 | |||||||||
| | | | | | | | | | |
| | 1st Quarter | | 2nd Quarter | | 3rd Quarter | | 4th Quarter | | Total Year |
| Guidance: | | | | | | | | | |
| Natural Gas (Bcf) | 196 – 200 | | 197 – 202 | | 204 – 211 | | 207 – 218 | | 804 – 831 |
| Oil (MBbls) | 560 – 635 | | 665 – 730 Werbung Mehr Nachrichten zur Southwestern Energy Aktie kostenlos abonnieren
E-Mail-Adresse
Bitte überprüfe deine die E-Mail-Adresse.
Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1  Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News | ||||||
