Southwestern Energy – Investor Presentation – April 2022
new word for the week: Optionality - shows up at least 3 times in their presentation. I think we can all figure out what they mean, but what is the difference between "optionality" and "options"?
'ality" as opposed to "s". :-) Since the term is used in conjunction with "portfolio", I take it to mean that capital allocations can toggle between the M-U and the Haynesville-Bossier. With 60% of capital going to Haynesville currently, SWN is climbing on the LNG bandwagon. Though the optionality sounds good, the Haynesville will always be the better market. M-U gas has a transportation cost disadvantage to the most profitable markets. SWN has been especially aggressive with its Haynesville drilling program which ramped up immediately after the acquisitions.