Southwestern 3Q17: Huge Swing to Profit, Drilled 43 Marc Wells

Southwestern Energy, one of the biggest drillers in the Marcellus/Utica, delivered their third quarter 2017 update on Friday. Financially speaking the company displayed a remarkable turnaround. In 3Q15 Southwestern lost $1.8 billion! In 3Q16 Southwestern lost $735 million–trimming loses in half. In 3Q17, the company made a profit of $43 million, a swing of more than 3/4 of a billion dollars year over year and a swing of nearly $2 billion if you go back to 2015. Production in the Marcellus/Utica soared in 3Q17, up 26% over last year–to 153 billion cubic feet equivalent (Bcfe). That works out to 1.7 Bcfe per day. Southwestern has a lot of irons in the fire. They’ve drilled their second Utica well (happy with the results). They’re actively drilling in northeast PA, southwest PA and West Virginia. Overall, across the entire Marcellus/Utica patch, Southwestern drilled 43 wells, completed 25 wells and brought online into production 33 wells–in the past three months. The company also began work on a water infrastructure project–in the Panhandle area of West Virginia. The water project is expected to reduce well completion costs by $500,000 per well beginning in late 2018, and lower Southwestern’s break-even gas price by $0.25 per Mcfe. Yeah, a lot of irons. And they own a lot of acreage throughout the play. But the company does a good job in juggling all of the competing priorities. Below is the full 3Q17 update, followed by comments from Southwestern’s senior VP of E&P operations, John Bergeron…

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