Southwestern in 2015…Drill Like Crazy; in 2016…Don’t Drill

One of our favorite authors who writes for The Motley Fool, Matt DiLallo, has just published another excellent article. This one is about Southwestern Energy, one of the biggest drillers in the Marcellus Shale. Matt looks at why Southwestern’s stock price dropped like a rock in February–down 32% in a single month. In February 2015, MDN pointed out Southwestern had adopted a contrarian plan for the year–doubling down on drilling in the Marcellus (see Southwestern’s Contrarian Plan: Double Down on Drilling in the Marcellus). At the time most drillers in our neck of the woods were pulling back and drilling less. Not Southwestern. And that’s what Matt points out in his brief article. It was Southwestern’s breakneck drilling last year that got them into financial trouble. Southwestern has announced that for 2016 they’ve suspended all drilling. According to Matt, “The company clearly learned a valuable lesson last year”…

Please Login to view this content. (Not a member? Join Today!)
Password Reset
Please enter your e-mail address. You will receive a new password via e-mail.