Southwestern Energy released its 2019 predictions (guidance) yesterday. In line with other 2019 guidance numbers issued from other Marcellus/Utica drillers, Southwestern says they will spend less money and drill fewer new wells.
Unlike other M-U drillers, Southwestern is predicting year over year they will actually produce less gas–but that’s somewhat deceiving. The company sold off their Haynesville Shale assets in December, which is why they will produce less.
We don’t yet have the final production numbers for Southwestern for 2018, but in early 2018 they provided guidance of producing a high of 965 billion cubic feet equivalent (Bcfe). Their guidance for 2019 is a high of 785 Bcfe, a shortfall of 180 Bcfe. The difference is that Southwestern sold off their Haynesville assets in December, which were forecast to provide as much as 265 Bcfe of production last year.
If you compare apples to apples, Southwestern will produce more gas (and equivalents) in the Marcellus/Utica region in 2019, even with less drilling. They, like their peers, are becoming more efficient each year.
Southwestern says in 2018 they spent $1.25 billion on drilling and associated costs. In 2019, they plan to spend a maximum of $1.18 billion, or $70 million less.
As for production, the company produced (in Appalachia) 702 Bcfe in 2018, and they plan to produce a maximum of 785 Bcfe in 2019, an increase of 83 Bcfe (12%).
Southwestern is now 100% focused on the Marcellus/Utica. Full speed ahead!
Here’s Southwestern’s guidance numbers for 2019:
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