PS - Southwestern’s West Virginia pad delivers record peak rate - May 2020In its southwest Appalachia operations, Southwestern Energy increased development in its rich acreage in West Virginia. A four-well pad was turned to sales in mid-March and has exceeded expectations. The pad achieved a combined peak rate of 170 MMcf/d, which is a company record and 20% higher than the previous record. Southwestern credits the latest generation of completion designs for the achievement. Southwestern’s southwest Appalachia production averaged 967 MMcfe/d in Q1, down by 5%...
May 13, 2020
ES - Southwestern Energy Highlights - May 12, 2020During Q1, Southwestern Energy drilled 15 wells, completed 10 and turned five to sales on its northeast Appalachian assets. On its southwest Appalachian position, 23 wells were drilled, 12 completed and seven turned to sales. Production across its portfolio averaged 2.2 Bcfe/d, up 10%...
May 12, 2020
PS - Southwestern slashes well costs in 2-year quest for cash flow - March 2020Southwestern Energy beat cost-reduction targets in 2019, lowering well costs by 27% to $824/lateral ft. Setting a company record, an 18,000-ft lateral was drilled and completed for $605/ft. Self-sourced sand, use of a company-owned water pipeline system, increased lateral lengths and reduced cycle times contributed to the cost reductions. Lower costs are part of the company’s two-year plan to become cash flow neutral following the divestment of its Fayetteville assets in December 2018. The plan...
Mar 30, 2020
ES - Southwestern slashes well costs in 2-year quest for cash flow - March 10, 2020Southwestern Energy beat its cost reduction targets in 2019, lowering well costs 27% to $824 per lateral foot across its acreage. Setting a company record, an 18,000-ft lateral was drilled and completed for $605/ft. Self-sourcing sand, use of a company-owned water pipeline system, increased lateral lengths and reduced cycle times contributed to the reductions. Lower costs are part of the company’s two-year plan to become cash flow neutral following the divestment of its Fayetteville assets,...
Mar 10, 2020
A&D - SM Energy reportedly eyeing $500MM South Texas exit - February 2020SM Energy is planning to sell its South Texas assets in a deal that could be valued at up to $500 million, Bloomberg reported Feb. 7, with the proceeds potentially used to reduce its $2.7 billion debt by 18%. A divestment would transition the company to a Permian pure-play, leaving it with 81,500 net acres across Howard, Midland and Upton counties, Texas. SM’s South Texas assets as of YE19 covered 158,927 net acres (162,305 gross) at the southwestern corner of the Eagle Ford trend...
Feb 27, 2020
A&D - Rockies-focused Southland goes bankrupt, shops portfolio - February 2020Rockies-focused Southland Royalty Co. is marketing its entire portfolio as part of an in-court restructuring process after filing for Chapter 11 bankruptcy protection on Jan. 27, with PJT Partners assisting in the sales process. According to the court filing, the oil price downturn of the last few years created an extremely challenging environment for the Fort Worth, Texas-based natural gas producer, depressing revenues generated by production activities and reducing the value of its proven...
Feb 06, 2020
PS - Southwestern boosts volumes, improves IP30s in SW Appalachia - November 2019Southwestern Energy grew Q3 production 8% YOY, excluding the divested Fayetteville assets, to 2.22 Bcfe/d. A total of 24 wells were drilled, 30 were completed, and 34 were brought online at an average cost of $784 per lateral foot; lateral lengths averaged 10,466 ft. The majority of the activity took place in the company’s Southwest Appalachia area. In southwest Appalachia, Southwestern drilled 14 wells, completed 16 and turned 21 to sales, with all but one targeting the Marcellus. The...
Nov 11, 2019
PS - Analyst Notes - September 9, 2019Southwestern Energy (SWN; $1.85-Aug. 6; Hold; PT-$3) Neutral on capex in-line with FY plans; Looking for how long reduced activity could hold. Though Q2 spending screens optically high vs. estimates at $368MM vs. TPHe/Street $314MM/$338MM and brings YTD spend to $693MM (60% of latest FY budget guidepost), H1-weighted capex corresponds with D&C activity YTD incl. 71 drills (62-75% of FY guide), 71 completions (59-71% of FY guide), and 55 TTS (50-61% of FY guide). Latest guidepost is...
Sep 09, 2019
PS - Southwestern trims well costs, extends lateral lengths - September 2019Southwestern Energy is drilling longer laterals and doing it at a lower cost per foot. The company’s Q2 wells averaged 10,128-ft laterals, which is 30% longer than in 2Q18. Q2 well costs of $866/ ft came in under the company’s $875 million target. Southwestern has realized average savings of $800,000/well for all wells using its southwest Appalachia piped water infrastructure, which improves logistics and reduces trucking traffic and costs. All wells completed in the southwest program during...
Sep 09, 2019
CS - Rigs, wells & deals down YOY, but LNG provides bright spot - August 2019Upstream M&A continues its sluggish pace in Canada, with only two deals announced in July for a total disclosed value of $30.3 million, down 88% from June’s $253.9 million. Notably, the only billion-dollar-plus transaction YTD was another multinational exit, with Devon Energy’s $3.7 billion sale of its Canadian business to Canadian Natural Resources, continuing a two-year-plus trend that optimists dub “Canadian consolidation” and pessimists call “foreign flight.” Infrastructure issues...
Aug 21, 2019
ES - Southwestern trims wells costs, extends lateral lengths - August 20, 2019Southwestern Energy is drilling longer laterals and doing it at a lower cost per foot. The company’s Q2 wells averaged 10,128-ft laterals, which is 30% longer than in 2Q18. Q2 well costs of $866/ft came in under the company’s $875 million target. Southwestern has realized average savings of $800,000/well for all wells using its southwest Appalachia piped water infrastructure, which improves logistics and reduces trucking traffic and costs. All wells completed in the southwest program during...
Aug 20, 2019
CM - Southwestern’s net income soars as Appalachia pure-play - May 2019Southwestern Energy posted net income of $594 million in Q1, the company’s first
quarter as a single-basin Appalachia producer. Its earnings were nearly double 4Q18’s
$307 million and triple 1Q18’s $208 million. Revenue declined by 16% sequentially and
8% YOY to $990 million.
Spring, Texas-based Southwestern sold its Fayetteville assets to
Flywheel Energy for $1.87 billion in a transaction that closed in December. It used
the proceeds to delever, ending 2018 with total debt of $2.32...
May 09, 2019
ES - Southwestern drills company-record laterals in Appalachia - May 07, 2019Southwestern Energy continues to make operational improvements in its postFayetteville era. During Q1, the company set a new pad completion time record of 8.3 stages
per day in southwestern Appalachia. The company also drilled a record 8,300 lateral ft in 24
hours, 100% in the target zone. Lateral length records were achieved in West
Virginia and Pennsylvania
at 18,019 ft and 18,683 ft, respectively.
With operational improvements came
reductions in costs. Q1 well costs were down 10%...
May 07, 2019
A&D - News Briefs - June 27, 2019Canada-based Shoal Point Energy
Ltd. struck a five-year farm-in agreement
with Midcontinent-focused privately held
Shelby Resources LLC to acquire a 65%
WI of an 80% net revenue interest in the
Mount Evans prospect in Kansas. Shoal
will pay $75,000, finance a 3D seismic
shoot over 5,700 acres at an estimated
cost of $420,000, and drill the first well to a
depth of 4,700 ft for $135,000. Completing
and equipping the first well and all
operations on subsequent wells will be
paid for by Shoal...
Jun 27, 2019
CM - Earnings & Capex Briefs - June 21, 2019Thanks to the divestment of non-core
assets in the southern Midland Basin for
$245 million, Callon Petroleum Co. said
it would spend a little less in 2019 than
initially announced. New capital spending
on facilities, equipment, seismic, land and
other items will amount to $495-520 million
from an earlier $500-525 million while
capitalized interest and G&A expenses will
stay the same at an estimated $100-105
million. Production guidance for the year
was adjusted to 38,000-39,500 boe/d...
Jun 21, 2019