Southwestern Energy – Investor Presentation – April 2022
https://s2.q4cdn.com/525076814/files/doc_presentations/2022/April-2...
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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.
Shale drilling and lithium extraction are seemingly distinct activities, but there is a growing connection between the two as the world moves towards cleaner energy solutions. While shale drilling primarily targets…
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