<PAGE>
===========================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------------------
FORM 10-Q
(Mark one)
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended September 30, 1995
------------------
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from _______ to _______
Commission file number 1-8246
SOUTHWESTERN ENERGY COMPANY
(Exact name of registrant as specified in its charter)
Arkansas 71-0205415
(State of incorporation (I.R.S. Employer
or organization) Identification No.)
1083 Sain Street, P.O. Box 1408, Fayetteville, Arkansas 72702-1408
(Address of principal executive offices, including zip code)
(501) 521-1141
(Registrant's telephone number, including area code)
No Change
(Former name, former address and former fiscal year; if changed
since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding twelve months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes: X No:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:
Class Outstanding at November 3,1995
---------------------------- ------------------------------
Common Stock, Par Value $.10 24,692,259
===========================================================================
- 1 -
<PAGE>
PART I
FINANCIAL INFORMATION
- 2 -
<PAGE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
--------- ---------
($ in thousands)
<S> <C> <C>
Current Assets
Cash $ 1,036 $ 1,152
Accounts receivable 18,150 32,325
Income taxes receivable 3,860 1,493
Inventories, at average cost 17,907 12,199
Other 3,005 2,353
--------- ---------
Total current assets 43,958 49,522
--------- ---------
Investments 5,918 4,877
--------- ---------
Property, Plant and Equipment, at cost
Gas and oil properties, using the
full cost method 490,220 435,570
Gas distribution systems 188,037 176,728
Gas in underground storage 35,855 36,629
Other 19,323 18,541
--------- ---------
733,435 667,468
Less: Accumulated depreciation,
depletion and amortization 268,913 242,008
--------- ---------
464,522 425,460
--------- ---------
Other Assets 6,941 6,216
--------- ---------
Total Assets $ 521,339 $ 486,075
========= =========
</TABLE>
The accompanying notes are an integral part
of the financial statements.
- 3 -
<PAGE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
--------- ---------
($ in thousands)
<S> <C> <C>
Current Liabilities
Current portion of long-term debt $ 6,071 $ 6,071
Accounts payable 15,447 18,670
Interest payable 3,510 1,297
Customer deposits 4,327 4,232
Current portion of deferred income taxes 1,482 1,482
Over-recovered purchased gas costs, net 6,747 3,627
Other 4,419 5,257
--------- ---------
Total current liabilities 42,003 40,636
--------- ---------
Long-Term Debt, less current portion above 176,029 136,229
--------- ---------
Other Liabilities
Deferred income taxes 106,154 100,288
Deferred investment tax credits 2,283 2,416
Other 3,683 3,050
--------- ---------
112,120 105,754
--------- ---------
Commitments and Contingencies
Shareholders' Equity
Common stock, $.10 par value; authorized
75,000,000 shares, issued 27,738,084
shares 2,774 2,774
Additional paid-in capital 21,252 21,231
Retained earnings 201,339 199,430
Less: Unamortized cost of 27,358
restricted shares in 1995
and 21,499 restricted shares
in 1994, issued under stock
incentive plan 282 262
Common stock in treasury, at cost 33,896 19,717
--------- ---------
191,187 203,456
--------- ---------
Total Liabilities and Shareholders' Equity $ 521,339 $ 486,075
========= =========
</TABLE>
The accompanying notes are an integral part
of the financial statements.
- 4 -
<PAGE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
---------- ---------- ---------- ----------
($ in thousands, except per share amounts)
<S> <C> <C> <C> <C>
Operating Revenues
Gas sales $ 22,769 $ 25,526 $ 100,053 $ 120,684
Oil sales 1,135 854 2,830 2,178
Gas transportation 1,264 1,062 3,806 3,581
Other 286 366 1,158 1,400
---------- ---------- ---------- ---------
25,454 27,808 107,847 127,843
---------- ---------- ---------- ---------
Operating Costs and Expenses
Purchased gas costs 3,031 2,385 24,364 27,955
Operating and general 10,660 10,048 32,243 30,668
Depreciation, depletion and amortization 8,861 8,128 27,169 26,098
Taxes, other than income taxes 947 920 3,099 2,799
---------- ---------- ---------- ---------
23,499 21,481 86,875 87,520
---------- ---------- ---------- ---------
Operating Income 1,955 6,327 20,972 40,323
---------- ---------- ---------- ---------
Interest Expense 2,894 2,275 8,040 6,328
---------- ---------- ---------- ---------
Other Income (Expense) (818) (593) (2,418) (1,547)
---------- ---------- ---------- ---------
Income Before Provision for Income Taxes (1,757) 3,459 10,514 32,448
---------- ---------- ---------- ---------
Income Tax Provision (Benefit)
Current (2,773) (515) (733) 9,692
Deferred 2,097 1,846 4,781 2,800
---------- ---------- ---------- ---------
(676) 1,331 4,048 12,492
---------- ---------- ---------- ---------
Net Income (Loss) $ (1,081) $ 2,128 $ 6,466 $ 19,956
========== ========== ========== ==========
Weighted Average Common Shares Outstanding 24,741,437 25,684,110 25,277,762 25,684,110
========== ========== ========== ==========
Earnings Per Share $(.04) $ .09 $ .26 $ .78
===== ===== ===== =====
Dividends Declared Per Share Payable 11/3/95
and 11/4/94 $ .06 $ .06 $ .06 $ .06
===== ===== ===== =====
</TABLE>
The accompanying notes are an integral part
of the financial statements.
- 5 -
<PAGE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
1995 1994
-------- --------
($ in thousands)
<S> <C> <C>
Cash Flows From Operating Activities
Net income $ 6,466 $ 19,956
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation, depletion and amortization 27,379 26,307
Deferred income taxes 4,781 2,800
Equity in loss of partnership 2,595 1,759
Change in assets and liabilities:
Decrease in accounts receivable 14,175 17,141
Increase in income taxes receivable (2,367) (3,512)
Increase in inventories (5,708) (1,014)
Decrease in accounts payable (3,223) (2,771)
Increase in interest payable 2,213 603
Increase in customer deposits 95 3
Increase (decrease) in over-recovered
purchased gas costs 3,120 (3,725)
Net change in other current assets
and liabilities (1,490) (2,192)
-------- --------
Net cash provided by operating activities 48,036 55,355
-------- --------
Cash Flows From Investing Activities
Capital expenditures (68,291) (54,653)
Investment in partnership (3,660) -
Other items 2,735 428
-------- --------
Net cash used in investing activities (69,216) (54,225)
-------- --------
Cash Flows From Financing Activities
Net increase in revolving long-term debt 39,800 9,184
Payments on other long-term debt - (6,000)
Purchase of treasury stock (14,179) -
Dividends paid (4,557) (4,623)
-------- --------
Net cash provided (used) in financing activities 21,064 (1,439)
-------- --------
Decrease in cash (116) (309)
Cash at beginning of year 1,152 834
-------- --------
Cash at end of period $ 1,036 $ 525
======== ========
</TABLE>
The accompanying notes are an integral part
of the financial statements.
- 6 -
<PAGE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
1. BASIS OF PRESENTATION
The financial statements included herein are unaudited; however, such
information reflects all adjustments (consisting solely of normal
recurring adjustments) which are, in the opinion of management, necessary
for a fair presentation of the results for the interim periods. The
Company's accounting policies are summarized in the 1994 Annual Report to
Shareholders, Notes to Financial Statements.
Certain reclassifications have been made to the September 30, 1994,
financial statements in order to conform with the 1995 presentation.
These reclassifications had no effect on previously reported net income.
2. DIVIDEND PAYABLE
A dividend of $.06 per share was declared October 4, 1995, payable
November 3, 1995.
3. TREASURY STOCK
The Company's Board of Directors authorized during the first quarter of
1995 the repurchase of up to $30,000,000 of the Company's Common Stock.
The stock repurchases have been funded by cash flows from operations and
the Company's revolving credit facilities. The following table reconciles
changes in treasury stock during the nine months ended September 30, 1995
($ in thousands).
Shares Amount
Balance at December 31, 1994 2,053,974 $19,717
Shares repurchased 1,000,000 14,259
Shares issued as restricted and stock awards (8,149) (80)
--------- -------
Balance at September 30, 1995 3,045,825 $33,896
========= =======
4. INTEREST AND INCOME TAXES PAID
The following table provides interest and income taxes paid
during each period presented.
Three months Nine months
Periods Ended September 30 1995 1994 1995 1994
----------------------------------------------------------------------
(in thousands)
Interest payments $1,390 $1,768 $6,899 $6,622
Income tax payments $95 $2,379 $895 $13,051
- 7 -
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following updates information as to the Company's financial condition
provided in the Company's Form 10-K for the year ended December 31, 1994, and
analyzes the changes in the results of operations between the three and nine
month periods ended September 30, 1995, and the comparable periods of 1994.
RESULTS OF OPERATIONS
The Company reported a net loss of $1.1 million, or $.04 per share, for the
quarter ended September 30, 1995, compared to net income of $2.1 million, or
$.09 per share, for the same period in 1994. For the nine months ended September
30, 1995, net income was $6.5 million, or $.26 per share, compared to $20.0
million, or $.78 per share, for the same period in 1994.
The comparative decreases in net income for the third quarter and year to date
1995 were primarily the result of lower natural gas prices, reflecting both the
general decline in spot market prices and the effect of the settlement approved
by the Arkansas Public Service Commission (APSC) to resolve a dispute concerning
the Company's pricing of intersegment sales. The settlement, which was effective
July 1, 1994, increased the volumes which could be sold by the Company's
exploration and production segment to its gas distribution segment, but made the
sales price equal to a spot market index plus a premium. The index-based pricing
has to date resulted in a lower sales price under the contract affected by the
settlement. The settlement and the significant increases in recent years in
sales of gas production to unaffiliated purchasers have both caused earnings to
become more sensitive to changes in the market price for natural gas. The
following tables compare operating revenues and operating income by business
segment for the three and nine month periods ended September 30, 1995 and 1994:
Quarter Ended Nine Months Ended
September 30, September 30,
------------------- ---------------------
1995 1994 1995 1994
-------- ------- -------- --------
(in thousands)
Revenues
Exploration and
production $13,695 $16,476 $ 45,901 $ 61,107
Gas distribution 16,347 17,587 82,740 93,627
Other 69 76 262 227
Eliminations (4,657) (6,331) (21,056) (27,118)
------- ------- -------- --------
$25,454 $27,808 $107,847 $127,843
======= ======= ======== ========
Operating Income
Exploration and
production $3,311 $7,051 $14,184 $31,376
Gas distribution (1,220) (636) 7,177 9,261
Corporate expenses (136) (88) (389) (314)
------ ------ ------- -------
$1,955 $6,327 $20,972 $40,323
====== ====== ======= =======
- 8 -
<PAGE>
Revenues of the exploration and production segment were down 17% and 25%,
respectively, for the three and nine month periods ended September 30, 1995, as
compared to the same periods in 1994. Gas production during the third quarter of
1995 was 8.4 billion cubic feet (Bcf), level with the same period in 1994. For
the nine months ended September 30, 1995, gas production was 26.1 Bcf, down 5%
from 27.6 Bcf for the same period in 1994. The decrease for the nine month
period was primarily the result of lower sales from the Company's Gulf of Mexico
properties. The Company is in the process of connecting new production, but due
to timing considerations, additions to new production have fallen somewhat
behind the normal decline from other properties, especially offshore.
Sales from the Company's offshore properties were .6 Bcf during the third
quarter of 1995 and 2.1 Bcf for the first nine months of 1995, down from 1.2 Bcf
and 4.4 Bcf, respectively, for the same periods in 1994. Sales in the first nine
months of 1994 were helped by the start of production from a new offshore
platform late in 1993. Sales of the Company's onshore gas production were 7.8
Bcf during the third quarter of 1995 and 24.0 Bcf for the nine months ended
September 30, 1995, up from 7.2 Bcf and 23.2 Bcf, respectively, for the same
periods in 1994. Sales of Arkansas production to unaffiliated purchasers totaled
11.2 Bcf for the first nine months of 1995, down from 12.0 Bcf for the same
period in 1994.
The Company sold 1.3 Bcf to Arkansas Western Gas Company (AWG), which operates
its northwest Arkansas gas distribution system, during the third quarter of
1995, down from 1.7 Bcf for the same period in 1994. Sales in the third quarter
of 1994 were helped by increased demand of the utility for storage injection
during that period. The Company sold 5.9 Bcf to AWG during the first nine months
of 1995, compared to 5.8 Bcf for the same period in 1994. Associated Natural Gas
Company (Associated), which operates the Company's gas distribution systems in
northeast Arkansas and parts of Missouri, purchased .8 Bcf of the Company's gas
production during the third quarter of 1995 and 3.6 Bcf during the first nine
months of 1995, compared to .9 Bcf and 3.6 Bcf, respectively, for the same
periods in 1994.
The Company's average sales price for its gas production was $1.49 per thousand
cubic feet (Mcf) for the third quarter of 1995, down 19% from $1.85 per Mcf for
the same period in 1994. The average sales price was $1.65 per Mcf for the first
nine months of 1995, down 23% from $2.13 per Mcf for the same period of 1994.
The Company's oil production increased to 164,022 barrels for the nine months
ended September 30, 1995, up from 137,691 barrels for the same period in 1994.
The increase was due primarily to additional production from properties acquired
in Oklahoma and the Gulf Coast area during the last half of 1994 and the first
half of 1995.
Operating revenues of the gas distribution segment decreased 7% in the third
quarter of 1995 and 12% in the nine months ended September 30, 1995, both as
compared to the same periods in 1994. The decreases were due both to a decrease
in the average utility rate and lower volumes due to warmer weather. Growth of
3% in 1995 in the average number of utility customers substantially offset the
effect of weather which was 4% warmer than normal during the first nine
months of 1995 and 5% warmer than in the same period in 1994. Deliveries
by the Company's gas distribution systems to sales and end-use transportation
customers were 4.2
- 9 -
<PAGE>
Bcf for the third quarter of 1995 and 22.1 Bcf for the nine months ended
September 30, 1995, compared to 4.2 Bcf and 22.2 Bcf, respectively, for the same
periods in 1994. AWG delivered a total of 14.7 Bcf to its sales and end-use
transportation customers during the first nine months of 1995, up from 14.5 Bcf
for the same period in 1994. AWG also transported 8.5 Bcf for delivery off its
system during the first nine months of 1995, down from 8.8 Bcf for the same
period in 1994. Associated delivered a total of 7.4 Bcf to its customers during
the first nine months of 1995, down from 7.7 Bcf for the same period in 1994.
The Company's average rate for its utility sales decreased to $4.24 per Mcf
during the first nine months of 1995, down from $4.73 per Mcf for the same
period in 1994. The decrease reflected lower prices paid for purchases of
natural gas which are passed through to customers under automatic adjustment
clauses.
On July 14, 1995, Associated received an order from the Missouri Public Service
Commission (MPSC) disallowing the recovery of $2.2 million of gas costs. The
order was the result of audits by the Staff of the MPSC (Staff) for the
five-year period ending August 31, 1993. Of the total disallowed, $1.5 million
represented a portion of the difference between the price paid by Associated
under a long-term firm contract with one of the Company's gas producing
subsidiaries and a spot market index price for gas delivered into an interstate
pipeline operating in the Arkoma Basin. Staff had recommended disallowance of
approximately $3.1 million of such costs. In making its recommendation, Staff
acknowledged that Associated had lowered its gas costs and saved its ratepayers
money by purchasing gas from its affiliate. The Arkansas Public Service
Commission had previously reviewed the costs charged to Arkansas ratepayers
under this contract and found them to be proper and allowable for recovery. The
MPSC also disallowed the recovery of $.7 million of take-or-pay charges passed
through to Associated by its interstate suppliers and allocable to
transportation customers of Associated. Associated has appealed the MPSC's
decision to the Circuit Court of Cole County, Missouri and that court has stayed
the MPSC's order and has directed Associated to pay the money to be refunded
under the MPSC's order into the registry of the court while the appeal is
pending. The Company does not expect the ultimate outcome of this matter to have
a material adverse impact on the results of operations or the financial position
of the Company.
Operating costs and expenses increased $2.0 million, or 9%, in the third quarter
of 1995 and decreased $.6 million, or .7%, for the nine months ended September
30, 1995, both as compared to the same periods in 1994. The increase in the
third quarter of 1995, as compared to 1994, was due primarily to higher
depreciation, depletion and amortization expense and to higher consolidated
purchased gas costs of the Company's gas distribution systems. The increase in
depreciation, depletion and amortization expense was due to an increase in the
rate of depletion per Mcf equivalent in the third quarter of 1995 as compared to
the same period in 1994. The increase in purchased gas costs resulted from a
decrease in the elimination of gas purchases related to intercompany
transactions, reflecting a lower level of intersegment sales in the third
quarter of 1995 as compared to the same period in 1994. The decrease in
operating costs and expenses for the nine months ended September 30, 1995, was
due primarily to lower purchased gas costs related to lower prices paid for gas
supplies, partially offset by increases in both operating and general expenses
and depreciation, depletion and amortization expense.
- 10 -
<PAGE>
Total interest expense for the nine months ended September 30, 1995, was up 27%,
compared to the same period in 1994. The increase was due to both higher average
borrowings and higher average interest rates on the Company's revolving credit
facilities.
The Company's share of the NOARK Pipeline System's (NOARK) pre-tax loss included
in other income was $.9 million for the third quarter of 1995 and $2.6 million
for the nine months ended September 30, 1995, compared to $.9 million and $1.8
million, respectively, for the same periods in 1994. The increase in NOARK's
pre-tax loss for the first nine months of 1995 resulted primarily from a
decrease in firm demand revenues and from an increase in interest expense. The
Company, through a subsidiary, holds a 47.93% general partnership interest in
NOARK and is the pipeline's operator.
The changes in the provisions for current and deferred income taxes recorded in
the three and nine month periods ended September 30, 1995, as compared to the
same periods in 1994, resulted primarily from the level of taxable income and
from the deduction for tax purposes of intangible drilling costs incurred,
netted against the turnaround of intangible drilling costs deducted for tax
purposes in prior years. Intangible drilling costs are capitalized and amortized
over future years for financial reporting purposes under the full cost method of
accounting.
CHANGES IN FINANCIAL CONDITION
Changes in the Company's financial condition at September 30, 1995, as compared
to December 31, 1994, primarily reflect the seasonal nature of the gas
distribution segment of the Company's business and changes in prices received
for gas production of the Company's exploration and production segment.
Routine capital expenditures, cash dividends and scheduled debt retirements are
predominately funded through cash provided by operations. For the first nine
months of 1995, operating activities provided net cash flows of $48.0 million, a
$7.4 million decrease from the $55.4 million provided in the first nine months
of 1994. The decrease was primarily due to lower net income and the timing of
both cash receipts and expenditures. The Company expects its outstanding
borrowings to increase during the fourth quarter of 1995 as cash generated from
operations will be less than the requirements for capital expenditures and cash
dividends.
The Company's capital expenditures for the first nine months of 1995 were $68.3
million, compared to $54.7 million for the same period in 1994. The comparative
increase was the result of additional oil and gas exploration expenditures,
primarily on the onshore Louisiana and Texas Gulf Coast combined with
expenditures of $9.2 million to purchase oil and gas producing properties in the
same area. The Company originally budgeted $55.2 million in 1995 for the
exploration and production segment, approximately level with the total spent in
1994, but currently expects total spending for this segment to be approximately
$70.0 - $75.0 million based on current projections of activity through the end
of 1995. Total capital spending for the exploration and production segment could
be affected by oil and gas property acquisitions which might be identified later
in 1995.
- 11 -
<PAGE>
The Company maintains two floating rate revolving credit facilities that provide
$80.0 million of medium to long-term capital at current market lending rates.
These facilities have been temporarily expanded to $140.0 million to provide
additional debt financing and to provide for the prepayment of the outstanding
balance on the Company's 10.63% Senior Notes. The Company has given notice of
its intent to repay the outstanding balance of its 10.63% Senior Notes by
November 17, 1995. A total of $92.1 million was outstanding under these
facilities at September 30, 1995, all of which was classified as long-term debt.
The Company also had available short-term lines of credit totaling $3.5 million,
none of which was outstanding at September 30, 1995. During the first nine
months of 1995, the Company's revolving long-term debt increased by $39.8
million. The increase was a result of both higher capital expenditures and
repurchases of 1,000,000 shares of the Company's Common Stock under a program
authorized by its Board of Directors in the first quarter of 1995. As a result
of the increased borrowings, long-term debt at September 30, 1995, accounted for
49% of the Company's capitalization, up from 41% at December 31, 1994.
The Company has filed a shelf registration statement with the Securities and
Exchange Commission for the issuance of up to $250 million of senior unsecured
debt securities. The Company currently anticipates an offering of $125.0 million
of senior notes during the last quarter of 1995. The proceeds will be used to
repay outstanding balances on the Company's revolving credit facilities and to
fund a portion of the Company's capital spending program. Additional debt
securities may be issued in the future under the shelf registration statement as
circumstances dictate.
Accounts receivable have declined since December 31, 1994, due to both
seasonally lower deliveries of the gas distribution segment and a decrease in
amounts due from unaffiliated purchasers of gas production in the exploration
and production segment caused by lower average gas prices and the timing of cash
receipts. The increase in income taxes receivable since December 31, 1994, is
primarily due to the lower level of taxable income in 1995, resulting from lower
operating income and higher intangible drilling costs. The increase in
inventories since December 31, 1994, is the result of injections of purchased
gas into the Company's unregulated underground gas storage facility. The Company
expects to withdraw and sell this gas during the upcoming heating season and has
hedged the projected sales to protect against price declines. Accounts payable
has declined since December 31, 1994, due primarily to seasonally lower gas
purchases of the gas distribution segment. Other changes in current assets and
current liabilities between periods resulted primarily from the timing of
expenditures.
The Company had over-recovered $6.7 million of purchased gas costs at September
30, 1995, which will be refunded to its utility customers through automatic cost
of gas adjustment clauses included in its filed rate tariffs. At December 31,
1994, the Company had over-recovered purchased gas costs in the amount of $3.6
million. These amounts are classified as current liabilities.
- 12 -
<PAGE>
PART II
OTHER INFORMATION
Item 5
- ------
The Company has been advised of a potential claim against it involving the
disputed ownership of overriding royalty interests in a number of oil and gas
properties, and related matters. The Company has begun discussions with the
claimant and has engaged special counsel to assist it in a preliminary
investigation of the claim's merits. The Company is unable to predict at this
time whether litigation will be commenced in respect of this claim or how the
claim will ultimately be resolved. While the amount of the potential claim is
significant in the aggregate, management believes, based on its preliminary
investigation, that the Company's ultimate liability, if any, will not be
material to its consolidated financial position or results of operations.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SOUTHWESTERN ENERGY COMPANY
---------------------------
Registrant
DATE: November 14, 1995 /s/ GREGORY D. KERLEY
------------------------------
Gregory D. Kerley
Vice President - Treasurer and Secretary,
and Chief Accounting Officer
- 13 -
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 1,036
<SECURITIES> 0
<RECEIVABLES> 18,150
<ALLOWANCES> 0
<INVENTORY> 17,907
<CURRENT-ASSETS> 43,958
<PP&E> 733,435
<DEPRECIATION> (268,913)
<TOTAL-ASSETS> 521,339
<CURRENT-LIABILITIES> 42,003
<BONDS> 176,029
<COMMON> 2,774
0
0
<OTHER-SE> 188,413
<TOTAL-LIABILITY-AND-EQUITY> 521,339
<SALES> 102,883
<TOTAL-REVENUES> 107,847
<CGS> 0
<TOTAL-COSTS> 86,875
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8,040
<INCOME-PRETAX> 10,514
<INCOME-TAX> 4,048
<INCOME-CONTINUING> 6,466
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,466
<EPS-PRIMARY> .26
<EPS-DILUTED> 0
<PAGE>
</TABLE>
