Southwestern Energy: Revving The Engines For 2023

Summary

  • Southwestern Energy has suffered from aggressive hedging in 2022. This, combined with weakness in commodities, has taken the stock down 30% from recent highs.
  • We think that there is value in the company, and SWN shares could return to higher levels.
  • We suggest a little patience as the gas markets consolidate before going higher later this year.
  • Investors with a modest risk tolerance may find SWN attractive at slight lower prices than are available today.
  • Looking for more investing ideas like this one? Get them exclusively at The Daily Drilling Report. Learn More »

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Introduction

Southwestern Energy Company (SWN), a Marcellus and Haynesville natural gas and NGL producer, is a company we have meant to cover previously, but just never got around to doing. As you can see from the price

This article was written by

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Fluidsdoc is an international oil industry veteran with 40 years of experience having worked on six continents and in over twenty countries around the world. He is an expert in the upstream oilpatch and an energy sector specialist.

He is the leader of the investing group The Daily Drilling Report where he provides investment analysis for the oil and gas industry. Features of the group include: a model portfolio that covers all segments of upstream oilfield activity with weekly updates, ideas for both U.S and international energy companies, coverage from shale to deepwater drillers, technical analysis to identify catalysts, and more. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SWN over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This is not advice to buy or sell this stock or ETF in spite of the particular rating I am forced to select in the SA template. I am not an accountant or CPA or CFA. This article is intended to provide information to interested parties and is in no way a recommendation to buy or sell the securities mentioned. As I have no knowledge of individual investor circumstances, goals, and/or portfolio concentration or diversification, readers are expected to do their own due diligence before investing their hard-earned cash.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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