Southwestern Energy Reports Profitable Q2 of FY2023
August 24, 2023
☀️Earnings Overview
On August 3 2023, SOUTHWESTERN ENERGY ($NYSE:SWN) reported a decrease in both revenue and net income for the second quarter of FY2023, which concluded on June 30. Total revenue for the quarter was USD 1.3 billion, a decline of 69.3% from the same period in FY2022, and net income dropped by 80.3% to USD 0.23 billion.
Share Price
Southwestern Energy (NYSE: SWN) reported a successful second quarter of FY2023 on Thursday, with the stock opening at $6.3 and closing at $6.5, representing a 3.0% increase from the prior closing price of 6.3. The company’s performance in Q2 was strong, driven by strong production and cost-cutting initiatives. The company’s CEO, Bill Way, credited the strong performance to Southwestern Energy’s focus on cost-cutting initiatives in order to maximize profitability. He stated, “We continue to focus on improving our cost structure while driving returns for our shareholders.
The strong results in Q2 are a testament to our efforts to create value through disciplined execution and strategic investments.” Overall, Southwestern Energy reported a successful Q2 of FY2023, with its stock increasing by 3% from prior closing price and its operating costs decreasing by 6%. It is likely that the company will continue to focus on cost-cutting initiatives in order to remain profitable and create value for its shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Southwestern Energy. More…
| Total Revenues | Net Income | Net Margin |
| 11.31k | 5.52k | 37.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Southwestern Energy. More…
| Operations | Investing | Financing |
| 3.32k | -2.16k | -1.19k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Southwestern Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13k | 6.51k | 5.89 |
Key Ratios Snapshot
Some of the financial key ratios for Southwestern Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 68.0% | 191.2% | 50.4% |
| FCF Margin | ROE | ROA |
| 8.5% | 55.9% | 27.4% |
Analysis
At GoodWhale, we have conducted a thorough financial analysis of SOUTHWESTERN ENERGY. Our Star Chart model has evaluated their cashflows, debt and other financial metrics to give them an intermediate health score of 6/10. This suggests that they are likely to survive any crisis without the risk of bankruptcy. When looking at their performance indicators, it is clear that SOUTHWESTERN ENERGY is strong in growth and profitability, and medium in asset. However, they are weak when it comes to dividend. Based on our evaluation of these metrics, we have classified SOUTHWESTERN ENERGY as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. We believe that SOUTHWESTERN ENERGY is attractive to a range of investors, including those who are looking for steady growth and those who seek higher risk investments. They also provide a good dividend yield, making them an attractive option for income investors. More…
Peers
Southwestern Energy Co is an energy company that engages in the exploration, development, and production of natural gas and crude oil. The company operates in two segments: Exploration and Production, and Midstream Services. The Exploration and Production segment explores for and produces natural gas and crude oil. The Midstream Services segment provides natural gas gathering, processing, transportation, and marketing services to exploration and production companies. Southwestern Energy Co was founded in 1929 and is headquartered in Houston, Texas.
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Summary
Southwestern Energy‘s Q2 of FY2023 earnings report revealed a significant decrease in revenue and net income compared to the same period last year. Despite the negative news, the stock price moved up on the same day, suggesting that investors believe in the company’s long-term prospects. Analysts suggest that investors should buy shares on any dips, as the company has a good track record of delivering profits and has several projects in the pipeline. In addition, they point out that Southwestern Energy is well-positioned to benefit from rising natural gas prices and new technological solutions for improved efficiency.
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