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Southwestern Energy Company (SWN) investor relations material

Southwestern Energy Company Q4 2024 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2024 earnings summary27 Feb, 2025

Executive summary

  • Achieved record 4Q24 net production of 6.41 Bcfe/d, Adjusted EBITDAX of $964 million, and completed the Southwestern merger, becoming the largest domestic natural gas producer.

  • Accelerated 2025 synergy capture to $400 million, targeting $500 million annual synergies by YE26.

  • Debuted $750 million investment grade bond issuance in 4Q24, achieving a record spread for energy rising stars.

  • Enhanced capital returns framework with $1 billion share repurchase authorization, $2.30/share base dividend, and $500 million net debt reduction planned for 2025.

  • Focused on capital efficiency, market connectivity, and operational flexibility to respond to volatile energy demand.

Financial highlights

  • 4Q24 net income (GAAP) was $(399) million; FY24 net income $(714) million, impacted by merger and non-cash items.

  • 4Q24 Adjusted EBITDAX was $964 million; FY24 Adjusted EBITDAX $2,195 million.

  • 4Q24 Adjusted Free Cash Flow was $73 million; FY24 Adjusted Free Cash Flow $202 million.

  • Year-end 2024 net debt was $5.37 billion, with a target of under $4.5 billion by YE25.

  • 4Q24 revenues were $2.0 billion; FY24 revenues $4.24 billion.

Outlook and guidance

  • 2025 production guidance: 7,000–7,200 MMcfe/d (7.1 Bcf/d), with $2.7 billion base capex and up to $300 million for productive capacity.

  • Expect to exit 2025 at 7.2 Bcfe/d, with productive capacity investment enabling 7.5 Bcfe/d in 2026 if market conditions warrant.

  • 2025 plan includes $500 million net debt reduction and $2.30/share base dividend.

  • Capital allocation guided by a rolling 2–3 year market outlook, with mid-cycle Henry Hub price assumptions of $3.5–$4/Mcf.

  • 2025 Adjusted EBITDAX sensitivity: $4.8 billion at $3.00/mcf, up to $6.4 billion at $4.00/mcf gas price.

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Frequently asked questions

Southwestern Energy Company engages in the exploration, development, and production of natural gas, oil, and natural gas liquids (NGLs) in the United States. The company operates through two segments, Exploration and Production, and Midstream Services. The E&P segment is involved in the exploration for, and production of, natural gas, oil, and NGLs primarily in Arkansas, Pennsylvania, West Virginia, Texas, and Louisiana. This segment also provides water services to support natural gas and oil drilling activities of third-party exploratory and developmental oil and gas companies with operations in the Appalachian Basin. The Midstream Services segment is involved in gathering, compressing, treating, processing, transporting, storing, and selling natural gas; fractionating NGLs; transporting oil; acquiring and developing strategic midstream assets to support Southwestern Energy’s drilling activities; purchasing oil and NGL production for resale; and providing water services to third-party companies engaged in natural gas and oil exploration across the United States.

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