Southwestern Energy

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Southwestern Energy Company
Traded asNYSESWN
S&P 400 component
IndustryPetroleum industry
Founded1929; 90 years ago (1929) (as Arkansas Western Gas Company)
HeadquartersSpring, Texas, United States
Key people
William J. Way, CEO
Julian M. Bott, CFO
ProductsNatural gas
Production output
2.591 billion cubic feet of natural gas equivalent per day (2018)
RevenueIncrease $3.862 billion (2018)
Decrease $0.537 billion (2018)
Total assetsDecrease $5.797 billion (2018)
Total equityIncrease $2.362 billion (2018)
Number of employees
960 (2018)
Websitewww.swn.com
Footnotes / references
[1]

Southwestern Energy is a natural gas exploration and production company organized in Delaware and headquartered in Spring, Texas.[1] The company is ranked 709th on the Fortune 500.[2]

The company's primary exploration and production activities are in the Appalachian Basin in Pennsylvania and West Virginia. The company also controls 2,518,519 net undeveloped acres in New Brunswick, Canada, which are subject to an indefinite moratorium on hydraulic fracturing and cannot be developed at this time.[1]

As of December 31, 2018, the company had 1,987 million barrels of oil equivalent (1.216×1010 GJ) of estimated proved reserves, of which 67% was natural gas, 30% was natural gas liquids, and 3% was petroleum, and all of which was in the Appalachian Basin.[1]

History[edit]

The company traces its roots to Arkansas Western Gas Company, which was established in July 1929 as a subsidiary of Southern Union Gas Company of Dallas.

In 1985, the company acquired Mustang Fuel for $200 million in stock.[3]

In 2013, the company acquired assets in the Marcellus Shale from Chesapeake Energy for $93 million.[4]

In December 2014, the company acquired 413,000 net acres in the Upper Devonian, Marcellus and Utica shales in West Virginia and Southwest Pennsylvania from Chesapeake Energy for $5.375 billion.[5][6]

In December 2018, the company sold its assets in the Fayetteville Shale for net proceeds of $1.65 billion.[7]

Controversies[edit]

Public opposition to hydraulic fracturing in New Brunswick, Canada[edit]

In 2003, shale gas was discovered in New Brunswick, Canada. In March 2010, Southwestern successfully bid for exclusive licenses from the Department of Natural Resources of New Brunswick to conduct an exploration program. In 2010, Corridor Resources, in partnership with Apache Corporation, which operated in McCully Field, announced that "it found more natural gas in place in southern New Brunswick than is available in all of western Canada's proven reserves." In July 2011, the company assured residents that it was only exploring, not drilling using hydraulic fracturing. Seismic equipment owned by Southwestern was vandalized in an isolated work camp in Cumberland Bay. In August 2011, protests against hydraulic fracturing were held in Fredericton, Sussex, Hampton, Norton and Rexton, New Brunswick. Local residents were "concerned that the seismic testing could lead to hydro-fracking in their communities" and that the fracking would "harm their air and water quality." According to Ralph Carr, the mayor of Sussex, New Brunswick, by December 2011, Southwestern and Apache, had "announced their intentions to aggressively search for gas in the deep shale deposits that lay beneath us." Carr argued that controversy about shale gas development in New Brunswick was partially fueled by media attention, when Windsor Energy conducted seismic testing within the town boundaries before Sussex town council had given official permission. Carr argued against an outright ban on shale gas production but admitted that, "[m]issteps and mistakes by some companies involved with shale gas production have caused environmental damage and tarnished the image of the industry as a whole." In early August 2011, 40 people from Penniac, Taymouth, Stanley, Rogersville and several First Nations blocked a road north of Stanley, stopping the company's trucks used in seismic testing. There was a blockade on New Brunswick Route 134 in Mi’kmaq territory in New Brunswick. On October 3, 2013, the Court of Queen's Bench in New Brunswick granted Southwestern an injunction to end the protests of the Elsipogtog First Nation. However, the protesters were undeterred, and on October 17, they blocked the highway and set several police cars on fire. The situation "exploded in violence, sending dozens of people to jail and reducing five police cars to smouldering ruins". The Royal Canadian Mounted Police said "more than 40 protesters were arrested for various offences including firearms offences, uttering threats, intimidation, mischief and for refusing to abide by a court injunction". In 2015, the provincial government in New Brunswick imposed a moratorium on hydraulic fracturing and in May 2016, the government announced that the moratorium would continue indefintiely.[8][9][10][11][12][13][1]

References[edit]

  1. ^ a b c d e "Southwestern Energy Company 2018 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ^ "Southwestern Energy". Fortune.
  3. ^ "Southwestern Link Set With Mustang". The New York Times. May 30, 1985.
  4. ^ "Southwestern Energy Announces Acquisition of Marcellus Shale Properties" (Press release). PR Newswire. April 29, 2013.
  5. ^ "Southwestern Energy Completes Acquisition Of Southwest Marcellus And Utica Assets" (Press release). PR Newswire. December 22, 2014.
  6. ^ Olabi, Nora (December 22, 2014). "Southwestern Energy buys more interest in Marcellus and Utica after multibillion-dollar deal closes". American City Business Journals.
  7. ^ "Southwestern Energy Completes Transformational Sale of Fayetteville Shale Business" (Press release). Business Wire. December 4, 2018.
  8. ^ "Fracking firm says vandals won't stop it". CBC News. July 26, 2011.
  9. ^ "Seismic testing trucks blocked by protesters". CBC News. August 10, 2011.
  10. ^ "IN DEPTH: N.B. shale gas industry". CBC News. November 26, 2011.
  11. ^ "Sussex mayor warns shale gas ban is not the answer". CBC News. December 2, 2011.
  12. ^ "Anti-shale gas protest closes Highway 11 in N.B. for hours". CBC News. November 29, 2013.
  13. ^ "RCMP, protesters withdraw after shale gas clash in Rexton". CBC News. October 17, 2013.

External links[edit]