Southwestern Energy Co. (NYSE: SWN) announced Dec. 29 that it boosted its 2015 capital budget to focus on its recently acquired Marcellus and Utica assets.
With this expanded portfolio of opportunities, the company's total capital investment program in 2015 is planned to be about $2.6 billion, compared to a projected $2.4 billion capital program in 2014, excluding the acquisition capital for transactions announced in the fourth quarter of 2014.
"These are exciting times at Southwestern Energy," said Steve Mueller, chairman and CEO of Houston-based Southwestern, in a statement."The addition of this third world-class asset into the portfolio allows us to add even more value for shareholders for years to come."
Mueller said the company's total current net acreage of 782,000 acres and net production of about 1.2 billion cubic feet equivalent per day (Bcfe/d) in the northeast U.S. place Southwestern in the top three among its peers. He added that Southwestern is the only company to have significant positions in both core areas.
Southwestern is targeting total net gas and oil production of 970-980 Bcfe in 2015, up about 28% over the company's current production projection of 758-764 Bcfe for 2014 (using midpoints).
Total net production from Southwest Appalachia is expected to be 145-150 Bcfe, of which about 40% is estimated to be liquids. In Northeast Appalachia, the company expects total net production to continue its strong growth in 2015 to 345-350 Bcf, compared to 253-254 Bcf that is projected to be produced in 2014. Total net production from the Fayetteville Shale in 2015 is expected to be 470-475 Bcf.
Both the conventional Arkoma and East Texas assets are assumed to be sold effective Jan. 1.
"2015 will be a transformational year for Southwestern Energy," Mueller said.
He said Southwestern's Northeast Appalachia and Fayetteville assets will continue to exhibit strong performance and demonstrate their ability to generate significant returns. At the same time, the company will hit the ground running in Southwest Appalachia with substantial activities planned and strong results expected while accelerating up the learning curve.
"With the quality of our three world-class assets, the strength of our firm transportation portfolio and our operational experience and focus, 2015 is setting up to be a very exciting and transformational year for Southwestern Energy," he said.
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