Southwestern Energy Announces 2017 Operational And Financial Results

HOUSTON, March 1, 2018

• Net cash provided by operating activities of $1,097 million and net cash flow of $1,138 million, an increase of approximately 120% and 76%, respectively compared to 2016;
• Net income attributable to common stock of $815 million, or $1.63 per diluted share, and adjusted net income attributable to common stock of $219 million, or $0.44 per diluted share;
• 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;
• Realized C3+ NGL prices of $30.08 per barrel, or 59% of West Texas Intermediate (WTI), and realized total NGL prices of $14.48 per barrel, or 28% of WTI (net of transportation costs), up 69% and 94%, respectively, compared to 2016;
• Record total proved reserves 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
• Reserve life index increased to more than 16 years at year-end 2017, an increase of approximately 175% compared to year-end 2016;
• Increase in 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;
• Proved Developed (PD) Finding and Development (F&D) costs for the total company of $0.72 per Mcfe, 4% better than 2016 and demonstrating continued improved capital efficiency; and
• Further optimized drilling and completion techniques resulting in increased type curves and improved economics in the Appalachian Basin.

"Southwestern Energy delivered solid financial and operational results in 2017. There is clear evidence of upside in our assets, as the value of our PV10 reserves alone is well above current enterprise value," said Bill Way, President and Chief Executive Officer. "Our focus in 2018 will be on exploring strategic alternatives for Fayetteville Shale assets, accelerating development in Appalachia and reducing structural costs as we reposition the Company to compete and win in any commodity price environment for years to come. Building on the momentum from our leading technical and operational expertise and our demonstrated financial discipline, underpinned by our Formula that guides everything we do, we are well positioned to drive increasing value for our shareholders."

The Company invested within cash flow (supplemented by the previously announced remaining $200 million from its 2016 equity offering as planned) while investing in its highest return projects. Below is a summary of fourth quarter and full year 2017 results.