Southwestern Energy Company (SWN)

[eFinanceMarkets]

Southwestern Energy gains on strong Q1 revenue, reserve numbers

Southwestern Energy (SWN +1%) is higher after reporting in-line Q1 earnings along with a stronger than expected 46% Y/Y revenue increase.

SWN says Q1 total net production was 204B cfe, including 123B cfe from the Appalachian Basin, where the exit rate for the quarter rose 12% from year-end 2016; proved reserves exceeded 10T cfe, with ~$3B in PV10, nearly doubling from year-end 2016 reserves.

BMO analysts see the Q1 results and operations update indicate "greater capital efficiency than we modeled, at least a profile of growth within cash flow that looks even more doable... That prompts us to recast our estimates, appreciating not all potential improvements in the field are captured yet."