SWN Guides To Higher-Than-Expected Costs In 2010

Analysts at Citi Investment Research and Analysis maintain their "hold" rating on Southwestern Energy Co (NYSE: SWN), while reducing their estimates for the company. The target price for SWN has been reduced from $52 to $50.

Southwestern Energy has issued its 2010 production guidance ahead of the estimates. However, the guidance for operating and overhead costs is higher than expected. Moreover, SWN’s commodity price hedge positions have not changed significantly.

As the near-term outlook for natural gas prices remains weak, SWN’s performance would be under pressure. Citi Investment Research and Analysis has reduced its EPS estimate for 2010 from $1.78 to $1.65.