Southwestern Energy upped to Buy at Benchmark on Haynesville strength

Jun. 15, 2022 11:56 AM ETSouthwestern Energy Company (SWN)By: Carl Surran, SA News Editor7 Comments

Drilling Fracking Rig at Night

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Southwestern Energy (NYSE:SWN) +2.8% in Wednesday's trading after Benchmark upgraded shares to Buy from Hold with a $14 price target, saying it is "surprised" by the company's operations execution in the Haynesville shale play.

Haynesville results have been solid to date since Southwestern (SWN) made two transformational acquisitions last year, and "results are poised to improve as the company implements drilling and completion initiatives that should reduce cycle times and improve efficiencies," while capital intensity should improve next year, according to Benchmark analyst Subash Chandra.

Southwestern (SWN) "should be in position to return capital by mid-2023 based on a gas price deck that is substantially lower than the current curve," Chandra writes, believing "companies that are on the cusp of returning capital will outperform those that have already initiated programs."

Southwestern Energy (SWN) "is positioning itself to be a certified gas exporter amid the growing energy crisis in Europe," Fade The Market writes in a bullish analysis posted on Seeking Alpha.

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