While still awaiting government approval of Southwestern Energy’s merger with Oklahoma City-based Chesapeake Energy, Southwestern recently revealed its second quarter earnings which included a net loss of $608 million or 55 cents a share.
The Texas-based company said its adjusted net income was $113 million or 10 cents a share and adjusted EBITDA was $413 million. It also generated $290 million net cash from its operating activities.
The $7.4 billion merger, announced in January, was expected by Chesapeake Energy to be completed in the second quarter. But Democratic lawmakers in Congress expressed skepticism about the merger, among other oil and gas acquisitions, and forced the Federal Trade Commission to ask for more detailed information. As a result, the expected-completion of the deal isn’t expected now until the second half of 2024.
Southwestern, active in Appalachia and Haynesville invested $430 million in the two natural gas plays, including 22 wells that were placed to sales—19 in Appalachia and three in Haynesville. The company also said it had 30 wells drilled and 23 wells completed.
Appalachia – In the second quarter, total production was 247 Bcfe, with NGL production of 87 MBbls per day and oil production of 14 MBbls per day. The Company drilled 16 wells, completed 15 wells and placed 19 wells to sales with an average lateral length of 16,596 feet and average well cost of $922 per lateral foot.
Haynesville – In the second quarter, total production was 132 Bcf. There were 14 wells drilled, 8 wells completed and 3 wells placed to sales in the quarter with an average lateral length of 8,348 feet and average well cost of $1,788 per lateral foot.
The company’s capital investments included decreases of $31 million and $22 million for the three months ended June 30, 2024 and 2023 and $17 million and $28 million for the six months ended June 30, 2024 and 2023.
Southwestern reported its total debt at the end of the second quarter was $4.2 billion.
Because of the pending merger with Chesapeake Energy Corporation, Southwestern has discontinued providing guidance and holding conference calls.