Above-average growth prospects in the Fayetteville Shale; Competitive cost structure; and Moderate financial leverage. All of the company's production is natural gas, where price realizations are generally lower than oil on a per-energy basis; and Participation in the volatile and capital-intensive exploration and production industry. The ratings on Southwestern Energy Co. reflect the company's ability and proven track record of successfully increasing production, reserves, cash flow, and Standard & Poor's Ratings Services' expectations that Southwestern's leverage measures will remain moderate for the rating category. We expect the company will likely maintain funds from operations (FFO) to debt of more than 40%, despite its intention to aggressively outspend cash flow to develop its core property, the Fayetteville Shale. Although we think...
Companies mentioned in this report are:
- Southwestern Energy Co.
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