- Southwestern Energy (SWN -5.5%) shares have fallen ~40% since the spring and are sharply lower today as oil and gas prices plunge (I, II), but a Barron's weekend profile talks about a potential 60% upside as natural gas prices are likely to rise in 2015.
- Wise dealmaking and drilling have made SWN one of the industry’s lowest-cost producers, which means earnings could rise smartly as the price of gas rebound, but shares trade for 14x next year’s estimated earnings, among the lowest multiples in the energy sector, Jacqueline Doherty writes.
- Barron's cites several reasons to expect spot gas prices will rise in coming years: Utilities are switching increasingly to natural gas from coal, industrial demand is growing, and the U.S. is developing an export market for gas.