Southwestern Energy Offers Capital Update, Volume Outlook for 2013
Southwestern Energy Company (NYSE: SWN) today announced its total capital investment program in 2013 is planned to be approximately $2.0 billion, compared to approximately $2.1 billion in 2012, consisting of approximately $1.8 billion for its exploration and production segment, $160 million for its midstream segment and $40 million for corporate purposes.
Southwestern is targeting total net gas and oil production of 628 to 640 Bcfe in 2013, up approximately 11 to 13% over the company's expected 2012 level. Gross operated production is expected to grow approximately 4% in the Fayetteville Shale in 2013, however the company's net revenue interest is expected to change from approximately 64% in 2012 to 61% in 2013. As a result, total net production from the Fayetteville Shale in 2013 is expected to be 475 to 480 Bcf, compared to 484 to 486 Bcf in 2012. The change in net revenue interest in 2013 reflects the move to increased drilling on the eastern side of the field however, longer term, the company's average net revenue interest is expected to be approximately 64%. In the Marcellus Shale, the company expects its average net revenue interest to remain the same in 2013, resulting in both gross and net production more than doubling from 63 to 65 gross Bcf (53 to 55 net Bcf) in 2012 to 160 to 165 gross Bcf (134 to 139 net Bcf) in 2013.
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