Southwestern's gas and oil production was 500.0 Bcfe in 2011, up 24% compared to 404.7 Bcfe in 2010, and included 436.8 Bcf from the company's Fayetteville Shale play, up from 350.2 Bcf in 2010. Production from the Marcellus Shale was 23.4 Bcf in 2011, compared to 1.0 Bcf in 2010.

Fayetteville Shale – In 2011, Southwestern invested approximately $1.3 billion in its Fayetteville Shale play, which included approximately $1.2 billion to spud 650 wells, 580 of which were operated. The company increased its reserves in the Fayetteville Shale by 1.2 Tcf at a finding and development cost of $1.13 per Mcf.

Southwestern's net production from the Fayetteville Shale was 436.8 Bcf in 2011, up 25% from 350.2 Bcf in 2010, as gross production from the company's operated wells in the Fayetteville Shale increased from approximately 1,635 MMcf per day at the beginning of 2011 to approximately 1,947 MMcf per day by year-end.

In 2012, Southwestern plans to invest approximately $1.1 billion in the Fayetteville Shale, $925 million of which will be directed toward drilling and completing approximately 460 to 470 gross horizontal wells (320 to 330 net wells), 425 to 435 of which will be operated by the company.

Marcellus Shale – In 2011, Southwestern invested approximately $332 million in the Marcellus Shale, which included approximately $214 million to participate in 45 wells. Of the 45 wells in which the company participated during 2011, 18 were horizontal wells located in Bradford County and the remaining 27 wells were located in Susquehanna County.

The company added 327.3 Bcf of new reserves in the Marcellus Shale, including net upward reserve revisions of 98.1 Bcf due primarily to upward revisions of 102.6 Bcf from improved well performance offset by downward price revisions of 4.5 Bcf.

As of year-end 2011, Southwestern had spud 70 wells, 23 of which were on production and 67 of which were horizontal wells, resulting in net production from this area of 23.4 Bcf in 2011, compared to 1.0 Bcf in 2010. At December 31, 2011, the company's gross operated production from the area was approximately 133 MMcf per day and limited by high line pressures.

Total proved net reserves from the company's Marcellus Shale area were 342 Bcf at year-end 2011 from a total of 60 locations, of which 30 were proved developed producing, 2 were proved developed non-producing and 28 were proved undeveloped.

In 2012, Southwestern plans to invest approximately $526 million in the Marcellus Shale, $435 million of which will be directed toward drilling and completing approximately 80 to 85 gross horizontal wells (65 to 70 net wells), all of which will be operated by the company.

For the fourth quarter of 2011, Southwestern reported net income of $158.5 million, or $0.45 per diluted share, compared to $149.5 million, or $0.43 per diluted share, for the same period in 2010.

The full financial report can be found on Southwestern's website.