Southwestern Energy

(SWN)

Southwestern Energy Company is a growing independent energy company primarily engaged in natural gas and crude oil exploration, development and production within the United States. The Company is also focused on creating and capturing additional value through its natural gas gathering and marketing businesses, referred to as its Midstream Services.

Southwestern's primary business is the exploration for and production of natural gas within the United States, with its current operations being principally focused on development of the unconventional gas reservoir located on the Arkansas side of the Arkoma Basin, referred to as the Fayetteville Shale play. The Company is also actively engaged in exploration and production activities in Oklahoma, Texas, and Pennsylvania.

Southwestern primarily conducts its exploration and production operations through the wholly-owned subsidiaries, SEECO, Inc. and Southwestern Energy Production Company, or SEPCO. SEECO has historically operated exclusively in Arkansas. It holds a large base of both developed and undeveloped gas reserves in Arkansas and conducts the drilling programs for the Fayetteville Shale play and the conventional drilling program in the Arkansas part of the Arkoma Basin. SEPCO conducts development drilling and exploration programs in the Oklahoma portion of the Arkoma Basin, Texas, and Pennsylvania. DeSoto Drilling, Inc., or DDI, a wholly-owned subsidiary of SEPCO, operates drilling rigs in the Fayetteville Shale play and in East Texas.

The Company's Midstream Services segment primarily supports its E&P operations and is currently concentrated on the Fayetteville Shale play. Midstream Services generates revenue from gathering fees associated with the transportation of natural gas to market and through the marketing of its own gas production and some third-party natural gas.Southwestern engages in gas gathering activities in Arkansas and Texas through its gathering subsidiaries, DeSoto Gathering Company, L.L.C. and Angelina Gathering Company, L.L.C. the Company's gas marketing subsidiary, Southwestern Energy Services Company, or SES, captures downstream opportunities which arise through marketing and transportation activity.