Northeast drilling companies like Southwestern Energy are using creative strategies to stay afloat until oil and gas prices increase again. One of the tactics has been to lay off thousands of workers (see Southwestern Energy Cuts Workforce 44%, 200 Marcellus Jobs Gone). Another strategy is to cut spending and suspend drilling altogether (see Southwestern Cuts 2016 Spending 80%, Idles Marcellus Rigs (for Now)). Yet another is to borrow new money to pay off previously borrowed money (see Southwestern Energy Borrows $750M to Pay Off Other Borrowed Money). Southwestern continues with the creative financing with a tactic we’ve not seen before among northeast drillers: Pay dividends for one class of stock (preferred) by giving dividend-holders shares in another class of stock (common)…
