Southwestern Energy Company : Southwestern Energy Swings to 2nd-Quarter Loss, Names Owen CFO
08/02/2012| 05:29pm US/Eastern
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By Nathalie Tadena
Southwestern Energy Co. (SWN) swung to a second-quarter loss as impairment charges resulting from lower natural gas prices weighed on the energy producer's bottom-line results, and revenue fell more than analysts expected.
Southwestern also named R. Craig Owen, most recently its chief accounting officer and a senior vice president at the company, to the post of chief financial officer. Mr. Owen succeeds Greg D. Kerley, who will retire after 22 years at the company. The appointment is effective Oct. 1.
Though production gains helped Southwestern post stronger profits for much of 2011, declining natural gas prices have pressured the company's revenue. The current glut of natural gas partly stems from the U.S. energy industry's success with new exploration techniques--notably hydraulic fracturing of shale formations, or fracking.
Southwestern reported a loss of $488.1 million, or $1.40 a share, compared with a year-earlier profit of $167.5 million, or 48 cents a share. Excluding impairment of the company's natural gas and oil properties, the latest period's earnings were 26 cents a share, in line with analyst expectations.
Revenue fell 22% to $599.7 million, below the $633 million estimate from analysts polled by Thomson Reuters.
Total equivalent production rose 12%. The average realized price, including hedging impacts, fell 27% for natural gas while oil prices increased 4.1%.
The exploration and production segment swung to an operating loss of $859.9 million, including impairment, from a year-earlier profit of $222.5 million.
The smaller midstream services business saw earnings increase 20% on increased gathering revenues from its Fayetteville and Marcellus Shale properties.
Shares were off 1.1% to $31.76 after hours. Through the close, the stock is down 24% over the past 12 months.
Write to Nathalie Tadena at nathalie.tadena@dowjones.com
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