Southwestern Energy: Great 2014, Even Better 2015 On the Way

Southwestern Energy released their full year 2014, fourth quarter 2014 and preview of 2015 big kahuna update last Thursday. There is a LOT in there. With the purchase of 413,000 Marcellus/Utica Shale acres from Chesapeake along with a boatload of operating and partially-drilled wells, Southwestern is now one of the top 3 or 4 drillers in the Marcellus region (see Chesapeake Sells Close to 25% of Marcellus/Utica Operation). Even before adding the new acreage, Southwestern was going great guns last year. In 2014, Southwestern invested $695 million in Northeast Appalachia, which included $571 million to spud 99 operated wells. Southwestern’s net gas production from Northeast Appalachia was 254 Bcf in 2014, up 69% from 151 Bcf in 2013. Gross operated production in Northeast Appalachia was over 1.0 Bcf per day at the end of 2014 compared to approximately 700 MMcf per day at the end of 2013. They didn’t do much in Southwest Appalachia, as they call it (which means SW PA, WV & eastern OH). That will change this year–dramatically. Spending last year for the NE Marcellus was $695 million. This year it will be $700 million. Spending last year in the SW Marcellus was $4 million. This year? They’re going to spend big money on their newly acquired acreage from Chesapeake: $520 million. Southwestern is whacking their spending in other shale plays like the Fayettville–cutting it in half–so they can invest in the Marcellus…

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