Replies to This Discussion

Permalink Reply by DavidR on February 23, 2012 at 11:34

Exactly.  These investments to Black Rock are immaterial.  And if you were going to get in the LSBD now is the time you would do it.

  There is no doubt that's what motivated BR to act at this time.  SWN has clearly stated they believe they have a 3 Billion bbl play at a time when their gas assets have been slaughtered.

  Why not put a few dollars into these stocks?  Totally makes sense.

Permalink Reply by Skip Peel - Mineral Consultant on February 23, 2012 at 13:30

There will be no substantive production and therefore cash flow attributable to the LSBD for 2 years, best case scenario.  SWN has secondary assets (other than Fayetteville) that could be sold to pay debt and capitalize operations as a bridge to higher nat gas prices at some undetermined point in the future but then that would leave them with where they are now with predominantly gas production.  Or without the critical income from their midstream operations.  They don't have any good alternatives.  For those who would care to learn more, simply create Internet alerts for Southwestern Energy/SWN and read the articles.

Permalink Reply by Skip Peel - Mineral Consultant on February 23, 2012 at 14:58

SWN February 2012 Update

http://www.swn.com/investors/LIP/latestinvestorpresentation.pdf

Page 5: >2012 gas and oil (?) production projected to grow approximately 15% to 570 - 580 Bcfe.

Page 18: 2012 Guidance - NYMEX Price Assumption - (worse case scenario) $3.50 Gas/$80 Oil

               Actual February Natural Gas Contract Settlement Price - $2.678 mcf/ 2012 average ?

Page 22:  Hedges Volumes 2012 Swaps 185.2/Collars 80.5 Bcf - (best case scenario  45.8% hedged)

                54.2% 2012 Natural Gas production subject to unknown price realities.

Permalink Reply by obed w odom on February 23, 2012 at 16:48

One positive thing about SWN's financial position, from what I have heard, is that they have comparatively little debt, not having paid the astronomical prices for leases that were paid in the Haynesville Shale play.

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