Southwestern Energy

Southwestern Energy Company
Traded as NYSE: SWN
S&P 400 component
Industry Petroleum industry
Founded 1929 (1929) (as Arkansas Western Gas Company)
Headquarters Spring, Texas
Key people
William J. Way, CEO
Jennifer E. Stewart, CFO
Products Natural gas
Production output
865 million cubic feet of natural gas equivalent per day (2017)
Revenue Increase $3.203 billion (2017)
Increase $1.046 billion (2017)
Total assets Increase $7.521 billion (2017)
Total equity Increase $1.979 billion (2017)
Number of employees
1,575 (2017)
Website www.swn.com
Footnotes / references
[1]

Southwestern Energy is a natural gas exploration and production company organized in Delaware and headquartered in Spring, Texas.[1]

Current operations

The company's primary exploration and production activities are in the Appalachian Basin in Pennsylvania and West Virginia and in the Fayetteville Shale in Arkansas, where the company controls 918,535 net acres. The company also controls 2,518,519 net undeveloped acres in New Brunswick, Canada, which have been subject to a moratorium on hydraulic fracturing and cannot be developed at this time.[1]

As of December 31, 2017, the company had 2,462 million barrels of oil equivalent (1.506×1010 GJ) of estimated proved reserves, of which 75% was natural gas, 22% was natural gas liquids, and 3% was petroleum.[1]

The company also owns 2,061 miles of pipeline, almost entirely in Arkansas.[1]

History

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.[2]

In 2013, the company acquired assets in the Marcellus Shale from Chesapeake Energy for $93 million.[3]

In 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.[4][5]

Controversies

Public opposition to hydraulic fracturing in New Brunswick, Canada

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.[1] In 2010, Corridor Resources, in partnership with Apache Resources, which operated in the McCully Field play, 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, Tom Alexander, Southwestern's general manager for New Brunswick, assured residents that the company 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 Calgary-based Windsor Energy Inc. 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 Southwestern Resources Canada 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.[6][7][8][9][10][11][12]

See also

References

  1. 1 2 3 4 5 6 "Southwestern Energy Company 2017 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. "Southwestern Link Set With Mustang". The New York Times. May 30, 1985.
  3. "Southwestern Energy Announces Acquisition of Marcellus Shale Properties" (Press release). PR Newswire. April 29, 2013.
  4. "Southwestern Energy Completes Acquisition Of Southwest Marcellus And Utica Assets" (Press release). PR Newswire. December 22, 2014.
  5. Olabi, Nora (December 22, 2014). "Southwestern Energy buys more interest in Marcellus and Utica after multibillion-dollar deal closes". American City Business Journals.
  6. "Fracking firm says vandals won't stop it". CBC News. July 26, 2011.
  7. "Seismic testing trucks blocked by protesters". CBC News. August 10, 2011.
  8. "IN DEPTH: N.B. shale gas industry". CBC News. November 26, 2011.
  9. "Seismic testing trucks blocked by protesters". CBC News. August 10, 2011.
  10. "Sussex mayor warns shale gas ban is not the answer". CBC News. December 2, 2011.
  11. "Anti-shale gas protest closes Highway 11 in N.B. for hours". CBC News. November 29, 2013.
  12. "RCMP, protesters withdraw after shale gas clash in Rexton". CBC News. October 17, 2013.
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