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$45.04 -2.57 (-5.40%)
7/3/2008 1:06 PM

Southwestern Energy Company (SWN)

CAPS Rating:
*****

An independent energy company focused on natural gas. Through its wholly-owned subsidiaries, the Company is engaged in natural gas and oil exploration and production, natural gas gathering, transmission and marketing, and natural gas distribution.

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Total Players

711 Outperforms
30 Underperforms
 

All-Stars

267 Outperforms
8 Underperforms
 

Wall Street

8 Outperforms
0 Underperforms
 

Players bullish on SWN are also bullish on:

Players bearish on SWN are also bearish on:

Ticker Tags

Mid Cap (670), Independent Oil & Gas (98), Large Cap (467), Natural Gas (55), Gas (89)
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Southwestern Energy Company At A Glance

Current Price: $45.04
Last Trade Time: 7/3/2008 1:06 PM
Open: $0.00
Previous Close: $47.61
Daily Range: $44.10 - $49.90
52-Week Range: $17.83 - $52.69
Volume: 4,910,250
Market Cap: $16.28B
P/E Ratio: 58.06
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Stock Trends

SWN VS S&P 500 (SPY)

SWN 12 month chart vs. S&P

News & Discussion Boards

Other News Headlines for SWN

More Headlines...

Top Bull Pitch

Recs

1

Southwestern Energy Company (SWN)

Avatar suhsido1 (97.81) Submitted: 5/09/08 3:19 PM

Gas industry going up.

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Top Bear Pitch

Recs

1

Southwestern Energy Company (SWN)

Avatar dothedow (< 20) Submitted: 5/08/08 4:02 AM

HighGain+ HighPE

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CAPS Players

picks per page. CHANGE

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Recs

0

 (SWN)

Avatar jgseattle (91.96) Submitted: 7/03/08 1:58 AM : Outperform Start Price: $47.34 SWN Score: -4.23

Markman pick based on stockscouter for month of July.

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Recs

0

 (SWN)

Avatar LEGMAKER (74.41) Submitted: 6/28/08 3:49 PM : Outperform Start Price: $46.83 SWN Score: -2.56

My current focus with respect to investment for at least the next year is in companies that explore for and produce natural gas. My basis for this is not only that these companies have some transparency through hedging, but in my opinion natural gas is undervalued with respect to oil. I think that natural gas is less tied to the dollar and hence, when the dollar recovers, the price of natural gas will be less affected. The Fed statement was the key. They didn’t raise rates, as many on Wall Street were screaming for (probably would have been a good idea), proving that the housing and mortgage crisis still has a ways to go. This leaves us with a few ideas with respect to investing. You can get into commodities and stocks that benefit from higher pricing or you can short companies with large lending exposure (Capital One could get crushed, but still can be long MasterCard and Visa).





SWN is another natural gas company that seems well positioned due to pricing. Looking at their first quarter of 2008, we see production up 71%. Net income was up 114%. Discretionary cash flow increased by 99%. Capital investments also saw a rise of 25%. SWN has a proven track record as they have increased production from 33Bcfe in 1999, to 113 Bcfe in 2007. The estimates for this year with respect to production are 168-172 Bcfe. Reserve replacement has positioned them well going forward. Since 1999, reserve replacement has been in the triple digits with respect to percentages every year. In 1999, they had the lowest percentage of replacement of 148% and last year was the highest at 474%. They are also moving towards low risk drilling as the price of gas gets higher, this makes this segment and this company in particular a good investment.





Outlook going forward is compelling. Although pricing in oil and gas may see some movement downward, the trend should remain bullish for years to come. The only problem with increased demand is pricing. 2007 realized pricing for SWN was $6.86 for gas and $69.72 for oil. These prices equaled an EPS of $.64 and net cash flow of $651.2 MM. Management estimates that in 2008, pricing will be higher and that a gas price of $8 and oil at $80 will create and EPS of $1.24 to $1.26 and net cash flow will be an estimated $1,160-$1,170 MM. Respectively, gas at $9 and oil at $90 will have $1.36-$1.38 and $1,225-$1,235 MM. Lastly, gas at $10 and oil at $100 will create $1.46-$1.48 and $1,280-$1,290 MM. Looking at current pricing they could very easily be much higher than the last estimate. From what they said in their last earnings conference, this company wants to increase their production growth and cash flows. They plan that this year regardless of the price of gas and oil they will have reduced debt by 7%-12%. Even with all of the increases they managed to reduce their finding cost from $2.72 to $2.55 Mcfe. They also have a consistent hedging program that should give some transparency to their balance sheet. From 2002 to 2007 they have been between 80% and 70% hedged with last year at 72%.





Lastly, we see quite a bit of anger with respect to these rising prices. Much of this anger is focused at the likes of Exxon who have seen revenues skyrocket. Governments control 95% of oil companies with only 5% left to international companies. These governments are to blame for the high costs associated with driving your auto or heating your home. This socialized form of energy control has led to these high prices at the expense of our countries well fair. It is better to support our own companies to give them the ability to expand production as we are the only ones who can help the United States.


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Recs

0

 (SWN)

Avatar jessikalu13 (68.79) Submitted: 6/27/08 7:55 PM : Outperform Start Price: $46.83 SWN Score: -2.56

natural gas is the next big thing. mass transit buses will rely on this kind of gas.

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Recs

0

 (SWN)

Avatar MajBAD0437 (71.45) Submitted: 6/27/08 1:16 PM : Outperform Start Price: $46.15 SWN Score: -1.41

Continue riding the coat-tails of oil with an emphasis in natural gas.

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Recs

0

 (SWN)

Avatar gehin (94.94) Submitted: 6/26/08 1:10 PM : Outperform Start Price: $44.69 SWN Score: 3.04

Oil is king !!!

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Wall Street

Results 1 - 8 of 8  

picks per page. CHANGE Expand All Pitches

Top
Pick		Player NamePlayer RatingStart
Date		CallTime FrameStart
Price		Stock
Gain		S&P
Gain		ScorePitch
TrackBMOCapital 96.78 04/28/08 04/28/08 Outperform NS $43.93+2.53%-9.80%+12.33
TrackJohnKeeley 91.22 03/31/08 Outperform NS $33.69+33.69%-4.29%+37.98 Toggle the visibility of 60-Second Pitch and replies
TrackJimCramer 83.36 02/26/08 02/26/08 Outperform 3W $34.06+32.22%-8.71%+40.93
TrackNWQ 27.07 09/30/07 09/30/07 Outperform NS $20.92+115.24%-17.22%+132.46 Toggle the visibility of 60-Second Pitch and replies
TrackUBS 96.25 02/05/07 02/05/07 Outperform NS $20.00+125.20%-12.67%+137.87
TrackRBCCapMkts 88.28 12/19/06 12/19/06 Outperform NS $18.41+144.72%-10.69%+155.41
TrackDeutscheSec 87.34 12/18/06 12/18/06 Outperform NS $19.76+127.88%-11.39%+139.26
TrackMichaelBrus 89.73 10/26/06 10/26/06 Outperform 1Y $17.78+153.25%-9.09%+162.33

Results 1 - 8 of 8  

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