Southwestern Energy Announces First Quarter 2018 Results

SPRING, Texas, April 26, 2018

• Net production of 226 Bcfe, an increase of 11%, including a 37% increase in liquids production, compared to the first quarter of 2017;
• Appalachian Basin net production of 159 Bcfe, or 1.77 Bcfe per day, an increase of 29% compared to the first quarter of 2017;
• Total capital investments of $338 million, consistent with the Company's disciplined approach to invest within net cash flow.  Net cash provided by operating activities was $364 million and net cash flow was $358 million;
• Appalachian Basin net cash provided by operating activities improved 36% to $294 million compared to the first quarter of 2017;
• Northeast Appalachia generated net cash provided by operating activities, net of capital of approximately $115 million in the first quarter of 2018;
• Net income attributable to common stock of $205 million, or $0.36 per diluted share, and adjusted net income attributable to common stock of $162 million, or $0.28 per diluted share;
• Entered into a new, five-year $3.5 billion secured revolving credit facility, with an initial commitment of $2.0 billion supported by a borrowing base of $3.2 billion;
• The new facility replaces the 2016 revolving and secured term loan facilities, with estimated interest expense savings for the remainder of 2018 of approximately $20 million;
• Cash on hand was used to reduce gross debt by approximately $830 million compared to March 31, 2018 as the $1.2 billion term loan was repaid in full;
• Narrowing full year 2018 natural gas discount to NYMEX guidance including transportation to $0.70 - $0.80 per Mcf due to improving outlook for basis differentials and the Company's ability to capture higher pricing utilizing the strength and flexibility of its transportation portfolio;
• Delivered operational efficiency throughout the portfolio, which will provide additional cost savings and accelerate production timing:
• Executed new record level completion performance in Southwest Appalachia, increasing the number of stages pumped per day using zipper fracs to over 6 stages, a greater than 55% improvement compared to historical completion operations;
• Further cycle time reductions with record facility installation performance in Southwest Appalachia for the first quarter of 2018, reducing the average facility installations time by 45% versus the 2017 average; and
• Progressed Fayetteville redevelopment program by successfully testing two additional wells utilizing optimized landing zones and advanced completion technology.

"We delivered a strong start to the year, meeting or exceeding all commitments for the quarter," said Bill Way, President and Chief Executive Officer of Southwestern Energy.  "Momentum from growing liquids production and relentless delivery of operational and technical excellence, combined with our new credit facility, will improve margins in 2018 and into the future.  These tangible steps demonstrate the growing value of our Appalachia assets and the strong confidence we have in repositioning the Company."