Southwestern Energy: Free Cash Flow Generation Set To Improve

Summary

  • Southwestern's near-term free cash flow has been limited due to weak natural gas prices.
  • The strip for 2024 and 2025 is now around $3.50 and $4.00 respectively.
  • At those prices, Southwestern could generate $2.4 billion in free cash flow over that two year period.
  • Southwestern does have a significant amount of debt, but the bond markets are not very concerned about its ability to deal with its debt.
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Southwestern Energy's (SWN) near-term cash flow has been limited by weak natural gas prices, but with NYMEX gas strip currently at around $3.50 for 2024 and $4.00 for 2025, its longer-term outlook looks brighter.

Southwestern does have a

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This article was written by

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Aaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entertainment. He used his analytical and modeling skills to design the in-game economic models for two mobile apps with over 30 million in combined installs. He is the author of the investing group Distressed Value Investing, which focuses on both value opportunities and distressed plays, with a significant focus on the energy sector. Learn more>>

Analyst’s Disclosure:I/we have a beneficial long position in the shares of SWN either through stock ownership, options, or other derivatives. 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.

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