SWN

Southwestern Energy Co

Energy, Event Driven/Special Sit


Presented:03/14/2018
Price:$4.28
Cap:$2.17B
Current Price:$7.11
Cap:$7.84B

Presented

Date03/14/2018
Price$4.28
Market Cap$2.17B
Ent Value$6.17B
P/E Ratio2.61x
Book Value$3.86
Div Yield0%
Shares O/S507.14M
Ave Daily Vol26,600,609
Short Int10.64%

Current

Price$7.11
Market Cap$7.84B
Southwestern Energy Co. is an independent holding company, which engages in the development and production activities including related natural gas gathering and marketing. It operates through the Exploration and Production (E&P); and Midstream Services segments. The E&P segment involves in the exploration and production of natural gas, oil, and natural gas liquids. The Midstream Services segment deals with natural gas gathering activities. The company was founded on July 2, 1929 and is headquartered in Spring, TX.

Publicly traded companies mentioned herein: Devon Energy Corp (DVN), Energy Transfer Partners LP (ETP), Kinder Morgan Inc (KMI), Southwestern Energy Co (SWN)

Highlights

Following the early February announcement that Southwestern (SWN) is “pursuing strategic alternatives for the Fayetteville Shale E&P and related midstream gathering assets”, the presenter is bullish on SWN and sees multiple sources of upside for shareholders. He believes the assets could fetch $2.5B in a sale. This would leave “core” SWN trading at a 2 - 3 turn discount to its Marcellus peers on an EV/EBITDA multiple basis. While that may not seem significant, a re-rating of SWN’s multiple could lead to a 50% - 100% gain over 12 - 24 months.

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Idea Discussion

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