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Southwestern Energy 1Q profits surge $113 million on Fayetteville Shale activity Friday, Apr 25, 2008 Arkansas News Bureau LITTLE ROCK - Southwestern Energy Co. on Thursday reported first-quarter earnings of $109 million, up 113 percent from earnings of $51 million in the same quarter last year. Revenues rose to $524.1 million, up from $284.6 million in the comparable period, the company said. Significant growth in production volumes from the Fayetteville Shale play and higher realized natural gas prices drove revenues and profits upward, the company said. "Our results in the Fayetteville Shale continue to improve, resulting in strong growth in our production volumes," Southwestern CEO Harold M. Korell said in a release. Gross operated production from the play more than doubled over the past year, reaching approximately 400 million cubic feet per day on April 14, the company said. One year ago, production was approximately 155 million cubic feet per day. Overall, the company's natural gas and crude oil production was up 71 percent compared to the first quarter of 2007. During this year's first quarter, Southwestern spent $285 million in the Fayetteville Shale play, placing 76 operated horizontal wells on production. To date, Southwestern has drilled and completed 557 operated wells in the play, of which 493 are horizontal wells. The company also began a pilot program in Conway County near Morrilton in the first quarter to test full-scale development in the Fayetteville Shale play. "Results from the pilot area will provide key information regarding expected finding and development costs on a full-scale development basis," the company said. Shares of Southwestern (NYSE: SWN) closed Thursday at $37.59, down $1.89 for a 4.8 percent drop. |
