Southwestern Energy 2015: Record Production, Big Paper Loss

Southwestern Energy, one of the largest drillers in the Marcellus (and Utica) issued their fourth quarter and full year 2015 update yesterday. The company reports hitting a new record in production: 976 billion cubic feet equivalent, up 27% compared to 2014. A lot of that was driven by a huge 42% increase in their northeastern Marcellus production (they purchased new acreage in NEPA from WPX last year). The new acreage they acquired in West Virginia from Chesapeake is also a big factor in the production spike. Southwestern was one of the few companies that counterintuitively increased drilling in 2015. How did it work out financially? Nnnnnot so good. On paper the company lost $4.6 billion in 2015–but like other large drillers, most of that was a paper loss (not out of pocket money loss). Here’s the update from Southwestern, with lots of details on their Marcellus/Utica operations…

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