Company Quick10K Filing
Quick10K
Southwestern Energy
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$4.33 582 $2,520
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2018-03-01 Annual: 2018-03-01
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-04-27 Quarter: 2017-04-27
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
8-K 2019-02-05 Earnings, Exhibits
8-K 2018-12-03 M&A, Officers, Other Events, Exhibits
8-K 2018-10-25 Earnings, Exhibits
8-K 2018-09-28 Officers, Regulation FD
8-K 2018-09-17 Enter Agreement, Regulation FD, Exhibits
8-K 2018-08-30 Enter Agreement, Exhibits
8-K 2018-08-02 Earnings, Exhibits
8-K 2018-06-27 Exit Costs, Regulation FD
8-K 2018-05-25 Shareholder Vote, Other Events
8-K 2018-04-26 Earnings, Exhibits
8-K 2018-03-07 Officers, Exhibits
8-K 2018-02-26 Officers, Regulation FD, Exhibits
8-K 2018-02-08 Earnings, Regulation FD, Exhibits
8-K 2018-01-12 Regulation FD
E Eni
PE Parsley Energy
WPX WPX Energy
MUR Murphy Oil
BSM Black Stone Minerals
PDCE PDC Energy
NEXT Nextdecade
PBT Permian Basin Royalty Trust
CHKR Chesapeake Granite Wash Trust
BRN Barnwell Industries
SWN 2018-09-30
Part I – Financial Information
Item 1. Financial Statements
Item 2. Management’S Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10 swn-20180930xex10_2.htm
EX-31 swn-20180930xex31_1.htm
EX-31 swn-20180930xex31_2.htm
EX-32 swn-20180930xex32_1.htm
EX-32 swn-20180930xex32_2.htm
EX-95 swn-20180930xex95_1.htm

Southwestern Energy Earnings 2018-09-30

SWN 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 swn-20180930x10q.htm SWN Q3 2018 10-Q 20180930 10Q Q3





 

 

 

 



 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



 

 

 

Form 10-Q



 

 

 

(Mark One)

[X] Quarterly Report pursuant to Section 13 or 15(d) of the Securities

Exchange Act of 1934

For the quarterly period ended September 30, 2018



 

 

 

Or



 

 

 

[  ] Transition Report pursuant to Section 13 or 15(d) of the Securities

Exchange Act of 1934

For the transition period from ________ to ________



 

 

 

Commission file number: 001-08246

Picture 2

Southwestern Energy Company

(Exact name of registrant as specified in its charter)



Delaware

71-0205415

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)



 

10000 Energy Drive

Spring, Texas

77389

(Address of principal executive offices)

(Zip Code)



 

(832) 796-1000

(Registrant’s telephone number, including area code)



 

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)



 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No 

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:



Class

Outstanding as of October 23, 2018



Common Stock, Par Value $0.01

 

 

581,277,782

 

 

 

 


 



 



 

 

SOUTHWESTERN ENERGY COMPANY



INDEX TO FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2018



 

 

PART I – FINANCIAL INFORMATION

Page



 

 

Item 1.

Financial Statements



Consolidated Statements of Operations



Consolidated Statements of Comprehensive Income (Loss)



Consolidated Balance Sheets



Consolidated Statements of Cash Flows



Consolidated Statements of Changes in Equity



Notes to Consolidated Financial Statements



 

Note 1. Basis of Presentation



 

Note 2. Assets Held for Sale



 

Note 3. Reduction in Workforce

10 



 

Note 4. Revenue Recognition

11 



 

Note 5. Cash and Cash Equivalents

13 



 

Note 6. Natural Gas and Oil Properties

13 



 

Note 7. Earnings per Share

14 



 

Note 8. Derivatives and Risk Management

15 



 

Note 9. Reclassifications From Accumulated Other Comprehensive Income (Loss)

20 



 

Note 10. Fair Value Measurements

21 



 

Note 11. Debt

24 



 

Note 12. Commitments and Contingencies

27 



 

Note 13. Pension Plan and Other Postretirement Benefits

29 



 

Note 14. Stock-Based Compensation

29 



 

Note 15. Segment Information

32 



 

Note 16. Income Taxes

34 



 

Note 17. New Accounting Pronouncements

35 



 

Note 18. Condensed Consolidated Financial Information

36 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

44 



Results of Operations

45 



Liquidity and Capital Resources

53 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

58 

Item 4.

Controls and Procedures

60 



 

 

PART II – OTHER INFORMATION

 



 

 

Item 1.

Legal Proceedings

60 

Item 1A.

Risk Factors

60 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

60 

Item 3.

Defaults Upon Senior Securities

60 

Item 4.

Mine Safety Disclosures

60 

Item 5.

Other Information

60 

Item 6.

Exhibits

61 



CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS



All statements, other than historical fact or present financial information, may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  All statements that address activities, outcomes and other matters that should or may occur in the future, including, without limitation, statements regarding the financial position, business strategy, production and reserve growth and other plans and objectives for our future operations, are forward-

1

 


 

looking statements.  Although we believe the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance.  We have no obligation and make no undertaking to publicly update or revise any forward-looking statements, except as may be required by law.



Forward-looking statements include the items identified in the preceding paragraph, information concerning possible or assumed future results of operations and other statements in this Quarterly Report on Form 10-Q identified by words such as “anticipate,” “intend,” “plan,” “project,” “estimate,” “continue,” “potential,” “should,” “could,” “may,” “will,” “objective,” “guidance,” “outlook,” “effort,” “expect,” “believe,” “predict,” “budget,” “projection,” “goal,” “forecast,” “target” or similar words.



You should not place undue reliance on forward-looking statements.  They are subject to known and unknown risks, uncertainties and other factors that may affect our operations, markets, products, services and prices and cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.  In addition to any assumptions and other factors referred to specifically in connection with forward-looking statements, risks, uncertainties and factors that could cause our actual results to differ materially from those indicated in any forward-looking statement include, but are not limited to:

·

the timing and extent of changes in market conditions and prices for natural gas, oil and natural gas liquids (“NGLs”) (including regional basis differentials);

·

our ability to fund our planned capital investments;

·

a change in our credit rating;

·

the extent to which lower commodity prices impact our ability to service or refinance our existing debt;

·

the impact of volatility in the financial markets or other global economic factors;

·

difficulties in appropriately allocating capital and resources among our strategic opportunities;

·

the timing and extent of our success in discovering, developing, producing and estimating reserves;

·

our ability to maintain leases that may expire if production is not established or profitably maintained;

·

our ability to consummate the closing of the sale of our Fayetteville Shale assets and to realize the expected benefits from acquisitions;

·

our ability to transport our production to the most favorable markets or at all;

·

availability and costs of personnel and of products and services provided by third parties;

·

the impact of laws and government regulation, including the ability to obtain and maintain permits, any increase in severance or similar taxes, and legislation and judicial or administrative decisions relating to hydraulic fracturing, climate change, other environmental matters and over-the-counter derivatives;

·

the impact of the adverse outcome of any material litigation against us or involving our industry;

·

the effects of weather;

·

increased competition and regulation;

·

the financial impact of accounting regulations and critical accounting policies;

·

the comparative cost of alternative fuels;

·

credit risk relating to the risk of loss as a result of non-performance by our counterparties; and

·

any other factors listed in the reports we have filed and may file with the Securities and Exchange Commission (“SEC”).

Should one or more of the risks or uncertainties described above or elsewhere in this Quarterly Report occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements.  We specifically disclaim all responsibility to publicly update any information contained in a forward-looking statement or any forward-looking statement in its entirety and therefore disclaim any resulting liability for potentially related damages.



All forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.



2

 

 


 

PART I – FINANCIAL INFORMATION



ITEM 1. FINANCIAL STATEMENTS





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)



 

 

 

 

 

 

 

 

 

 

 



For the three months ended

 

For the nine months ended



September 30,

 

September 30,

(in millions, except share/per share amounts)

2018

 

2017

 

2018

 

2017

Operating Revenues:

 

 

 

 

 

 

 

 

 

 

 

Gas sales

$

465 

 

$

394 

 

$

1,412 

 

$

1,368 

Oil sales

 

62 

 

 

27 

 

 

141 

 

 

73 

NGL sales

 

112 

 

 

55 

 

 

252 

 

 

132 

Marketing

 

287 

 

 

233 

 

 

805 

 

 

736 

Gas gathering

 

25 

 

 

28 

 

 

73 

 

 

85 

Other

 

–  

 

 

−  

 

 

 

 

–  



 

951 

 

 

737 

 

 

2,687 

 

 

2,394 

Operating Costs and Expenses:

 

 

 

 

 

 

 

 

 

 

 

Marketing purchases

 

288 

 

 

236 

 

 

808 

 

 

740 

Operating expenses

 

206 

 

 

170 

 

 

588 

 

 

481 

General and administrative expenses

 

51 

 

 

62 

 

 

165 

 

 

170 

Restructuring charges

 

 

 

–  

 

 

20 

 

 

–  

Depreciation, depletion and amortization

 

151 

 

 

135 

 

 

436 

 

 

364 

Impairments

 

161 

 

 

–  

 

 

161 

 

 

–  

Taxes, other than income taxes

 

26 

 

 

24 

 

 

64 

 

 

75 



 

885 

 

 

627 

 

 

2,242 

 

 

1,830 

Operating Income

 

66 

 

 

110 

 

 

445 

 

 

564 

Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

Interest on debt

 

56 

 

 

58 

 

 

180 

 

 

175 

Other interest charges

 

 

 

 

 

 

 

Interest capitalized

 

(29)

 

 

(29)

 

 

(86)

 

 

(85)



 

29 

 

 

31 

 

 

100 

 

 

97 



 

 

 

 

 

 

 

 

 

 

 

Gain (Loss) on Derivatives

 

(65)

 

 

45 

 

 

(108)

 

 

295 

Loss on Early Extinguishment of Debt

 

–  

 

 

(59)

 

 

(8)

 

 

(70)

Other Income (Loss), Net

 

(1)

 

 

(2)

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Income Taxes

 

(29)

 

 

63 

 

 

230 

 

 

698 

Benefit for Income Taxes:

 

 

 

 

 

 

 

 

 

 

 

Current

 

–  

 

 

(10)

 

 

−  

 

 

(10)

Deferred

 

–  

 

 

(4)

 

 

−  

 

 

(4)



 

–  

 

 

(14)

 

 

−  

 

 

(14)

Net Income (Loss)

$

(29)

 

$

77 

 

$

230 

 

$

712 

Mandatory convertible preferred stock dividend

 

–  

 

 

27 

 

 

−  

 

 

81 

Participating securities - mandatory convertible preferred stock

 

–  

 

 

 

 

 

 

83 

Net Income (Loss) Attributable to Common Stock

$

(29)

 

$

43 

 

$

229 

 

$

548 



 

 

 

 

 

 

 

   

 

 

   

Earnings (Loss) Per Common Share

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.05)

 

$

0.09 

 

$

0.40 

 

$

1.11 

Diluted

$

(0.05)

 

$

0.09 

 

$

0.39 

 

$

1.10 



 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

581,171,753 

 

 

499,812,926 

 

 

577,912,421 

 

 

496,458,435 

Diluted

 

581,171,753 

 

 

502,290,779 

 

 

579,828,858 

 

 

498,527,671 



The accompanying notes are an integral part of these

consolidated financial statements.

3

 

 


 





 

 

 

 

 

 

 

 

 

 

 

SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)



 

 

 

 

 

 

 

 

 

 

 



For the three months ended

 

For the nine months ended



September 30,

 

September 30,

(in millions)

2018

 

2017

 

2018

 

2017

Net income (loss)

$

(29)

 

$

77 

 

$

230 

 

$

712 



 

 

 

 

 

 

 

 

 

 

 

Change in value of pension and other postretirement liabilities:

 

 

 

 

 

 

 

 

 

 

 

Amortization of prior service cost and net gain included in net periodic pension cost (1)

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

$

(25)

 

$

78 

 

$

234 

 

$

714 



(1)

Net of $1 million in taxes for the three and nine months ended September 30, 2018.  Net of less than $1 million in taxes for the three and nine months ended September 30, 2017.  However, all deferred tax activity incurred in other comprehensive income was offset by a valuation allowance.



The accompanying notes are an integral part of these

consolidated financial statements.



4

 

 


 





 

 

 

 

 

SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)



 

 

 

 

 



September 30,

 

December 31,



2018

 

2017

ASSETS

(in millions)

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

 

$

916 

Accounts receivable, net

 

397 

 

 

428 

Derivative assets

 

104 

 

 

130 

Other current assets

 

41 

 

 

35 

Current assets held for sale

 

64 

 

 

–  

Total current assets

 

615 

 

 

1,509 

Natural gas and oil properties, using the full cost method, including $1,767 million as of September 30, 2018 and $1,817 million as of December 31, 2017 excluded from amortization

 

24,880 

 

 

23,890 

Gathering systems

 

38 

 

 

1,315 

Other

 

479 

 

 

564 

Less: Accumulated depreciation, depletion and amortization

 

(19,928)

 

 

(19,997)

Total property and equipment, net

 

5,469 

 

 

5,772 

Other long-term assets

 

194 

 

 

240 

Long-term assets held for sale

 

780 

 

 

–  

TOTAL ASSETS

$

7,058 

 

$

7,521 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

$

563 

 

$

533 

Taxes payable

 

32 

 

 

62 

Interest payable

 

60 

 

 

70 

Dividends payable

 

–  

 

 

27 

Derivative liabilities

 

111 

 

 

64 

Other current liabilities

 

10 

 

 

24 

Current liabilities held for sale

 

116 

 

 

–  

Total current liabilities

 

892 

 

 

780 

Long-term debt

 

3,572 

 

 

4,391 

Pension and other postretirement liabilities

 

50 

 

 

58 

Other long-term liabilities

 

162 

 

 

313 

Long-term liabilities held for sale

 

177 

 

 

–  

Total long-term liabilities

 

3,961 

 

 

4,762 

Commitments and contingencies (Note 12)

 

 

 

 

 

Equity:

 

 

 

 

 

Common stock, $0.01 par value; 1,250,000,000 shares authorized; issued 586,195,162 shares as of September 30, 2018 and 512,134,311 as of December 31, 2017

 

 

 

Preferred stock, $0.01 par value, 10,000,000 shares authorized, 6.25% Series B Mandatory Convertible, $1,000 per share liquidation preference, 1,725,000 shares issued and outstanding as of December 31, 2017, converted to common stock on January 12, 2018

 

–  

 

 

–  

Additional paid-in capital

 

4,714 

 

 

4,698 

Accumulated deficit

 

(2,449)

 

 

(2,679)

Accumulated other comprehensive loss

 

(40)

 

 

(44)

Common stock in treasury, 4,860,280 shares as of September 30, 2018 and 31,269 shares as of December 31, 2017

 

(26)

 

 

(1)

Total equity

 

2,205 

 

 

1,979 

TOTAL LIABILITIES AND EQUITY

$

7,058 

 

$

7,521 



 

 

 

 

 

The accompanying notes are an integral part of these

consolidated financial statements.



5

 

 


 



 

 

 

 

 

SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



 

 

 

 

 



For the nine months ended



September 30,

(in millions)

2018

 

2017

Cash Flows From Operating Activities:

 

 

 

 

 

Net income

$

230 

 

$

712 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation, depletion and amortization

 

436 

 

 

364 

Amortization of debt issuance costs

 

 

 

Impairments

 

161 

 

 

–  

Deferred income taxes

 

–  

 

 

(4)

(Gain) loss on derivatives, unsettled

 

113 

 

 

(350)

Stock-based compensation

 

12 

 

 

19 

Loss on early extinguishment of debt

 

 

 

70 

Other

 

 

 

(2)

Change in assets and liabilities:

 

 

 

 

 

Accounts receivable

 

(7)

 

 

Accounts payable

 

60 

 

 

16 

Taxes payable

 

–  

 

 

(3)

Interest payable

 

(5)

 

 

(28)

Inventories

 

(9)

 

 

(1)

Other assets and liabilities

 

(41)

 

 

(14)

Net cash provided by operating activities

 

971 

 

 

789 



 

 

 

 

 

Cash Flows From Investing Activities:

 

 

 

 

 

Capital investments

 

(1,008)

 

 

(943)

Proceeds from sale of property and equipment

 

 

 

17 

Other

 

 

 

Net cash used in investing activities

 

(995)

 

 

(921)



 

 

 

 

 

Cash Flows From Financing Activities:

 

 

 

 

 

Payments on short-term debt

 

–  

 

 

(287)

Payments on long-term debt

 

(1,191)

 

 

(1,139)

Payments on revolving credit facility

 

(1,122)

 

 

–  

Borrowings under revolving credit facility

 

1,482 

 

 

–  

Change in bank drafts outstanding

 

10 

 

 

–  

Proceeds from issuance of long-term debt

 

–  

 

 

1,150 

Debt issuance costs

 

(9)

 

 

(18)

Purchase of treasury stock

 

(25)

 

 

–  

Preferred stock dividend

 

(27)

 

 

(8)

Cash paid for tax withholding

 

(1)

 

 

–  

Net cash used in financing activities

 

(883)

 

 

(302)



 

 

 

 

 

Decrease in cash and cash equivalents

 

(907)

 

 

(434)

Cash and cash equivalents at beginning of year

 

916 

 

 

1,423 

Cash and cash equivalents at end of period

$

 

$

989 



The accompanying notes are an integral part of these

consolidated financial statements.



6

 

 


 





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Common Stock

 

Preferred Stock

 

 

Additional

 

 

 

 

 

Accumulated Other

 

 

Common

 

 

 



Shares

 

 

 

 

Shares

 

 

Paid-In

 

 

Accumulated

 

 

Comprehensive

 

 

Stock in

 

 

 



Issued

 

 

Amount

 

Issued

 

 

Capital

 

 

Deficit

 

 

Income (Loss)

 

 

Treasury

 

 

Total



(in millions, except share amounts)

Balance at December 31, 2017

512,134,311 

 

$

 

1,725,000 

 

$

4,698 

 

$

(2,679)

 

$

(44)

 

$

(1)

 

$

1,979 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

–  

 

 

–  

 

–  

 

 

–  

 

 

208 

 

 

–  

 

 

–  

 

 

208 

Other comprehensive income

–  

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Total comprehensive income

–  

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

208 

Stock-based compensation

–  

 

 

–  

 

–  

 

 

 

 

–  

 

 

–  

 

 

–  

 

 

Conversion of preferred stock

74,998,614 

 

 

 

(1,725,000)

 

 

(1)

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Issuance of restricted stock

5,076 

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Cancellation of restricted stock

(160,168)

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Performance units vested

214,866 

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Tax withholding – stock compensation

(338,808)

 

 

–  

 

–  

 

 

(1)

 

 

–  

 

 

–  

 

 

–  

 

 

(1)

Balance at March 31, 2018

586,853,891 

 

 

 

–  

 

 

4,703 

 

 

(2,471)

 

 

(44)

 

 

(1)

 

 

2,193 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

–  

 

 

–  

 

–  

 

 

–  

 

 

51 

 

 

–  

 

 

–  

 

 

51 

Other comprehensive income

–  

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Total comprehensive income

–  

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

51 

Stock-based compensation

–  

 

 

–  

 

–  

 

 

 

 

–  

 

 

–  

 

 

–  

 

 

Issuance of restricted stock

307,743 

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Cancellation of restricted stock

(722,465)

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Tax withholding – stock compensation

(9,068)

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Balance at June 30, 2018

586,430,101 

 

 

 

–  

 

 

4,709 

 

 

(2,420)

 

 

(44)

 

 

(1)

 

 

2,250 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

–  

 

 

–  

 

–  

 

 

–  

 

 

(29)

 

 

–  

 

 

–  

 

 

(29)

Other comprehensive income

–  

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

 

 

–  

 

 

Total comprehensive income (loss)

−  

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

(25)

Stock-based compensation

−  

 

 

–  

 

–  

 

 

 

 

−  

 

 

–  

 

 

–  

 

 

Issuance of restricted stock

30,924 

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Cancellation of restricted stock

(248,342)

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Treasury stock

−  

 

 

−  

 

−  

 

 

−  

 

 

−  

 

 

−  

 

 

(25)

 

 

(25)

Tax withholding – stock compensation

(17,521)

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Balance at September 30, 2018

586,195,162 

 

$

 

−  

 

$

4,714 

 

$

(2,449)

 

$

(40)

 

$

(26)

 

$

2,205 



The accompanying notes are an integral part of these

consolidated financial statements.







































7

 

 


 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONTINUED)

(Unaudited)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Common Stock

 

Preferred Stock

 

 

Additional

 

 

 

 

 

Accumulated Other

 

 

Common

 

 

 



Shares

 

 

 

 

Shares

 

 

Paid-In

 

 

Accumulated

 

 

Comprehensive

 

 

Stock in

 

 

 



Issued

 

 

Amount

 

Issued

 

 

Capital

 

 

Deficit

 

 

Income (Loss)

 

 

Treasury

 

 

Total



(in millions, except share amounts)

Balance at December 31, 2016

495,248,369 

 

$

 

1,725,000 

 

$

4,677 

 

$

(3,725)

 

$

(39)

 

$

(1)

 

$

917 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

–  

 

 

–  

 

–  

 

 

–  

 

 

351 

 

 

–  

 

 

–  

 

 

351 

Other comprehensive income

–  

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Total comprehensive income

–  

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

351 

Stock-based compensation

–  

 

 

–  

 

–  

 

 

10 

 

 

–  

 

 

–  

 

 

–  

 

 

10 

Preferred stock dividend

2,751,410 

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Issuance of restricted stock

4,549,122 

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Cancellation of restricted stock

(113,185)

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Performance units vested

121,208 

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Tax withholding – stock compensation

(59,455)

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

Balance at March 31, 2017

502,497,469 

 

 

 

1,725,000 

 

 

4,687 

 

 

(3,374)

 

 

(39)

 

 

(1)

 

 

1,278 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

–  

 

 

–  

 

–  

 

 

–  

 

 

284 

 

 

–  

 

 

–  

 

 

284 

Other comprehensive income

–  

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

 

 

–  

 

 

 

Total comprehensive income

–  

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

285 

Stock-based compensation

–  

 

 

–  

 

–  

 

 

10 

 

 

–  

 

 

–  

 

 

–  

 

 

10 

 

Preferred stock dividend

3,346,865 

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

Issuance of restricted stock

353,803 

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

Cancellation of restricted stock

(303,135)

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

Tax withholding – stock compensation

(1,729)

 

 

–  

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

 

–  

 

Issuance of stock awards

72 

 

 

–  

 

–