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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) April 25, 1997
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SOUTHWESTERN ENERGY COMPANY
(Exact name of registrant as specified in its charter)
Arkansas 1 - 8246 71-0205415
(State of incorporation (Commission (I.R.S. Employer
or organization) File Number) 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)
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Item 5.
Other Events
Reference is made to the press release issued April 25, 1997, filed
herewith as Exhibit 1, announcing the operating results of the Registrant for
the first quarter of 1997.
Item 7.(c)
Exhibits Reference
(1) Press release dated April 25, 1997 p. 3 - 6
SIGNATURES
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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
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(Registrant)
DATE: April 29, 1997 BY: /s/ GREG D. KERLEY
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Greg D. Kerley
Vice President -- Treasurer and
Secretary
NEWS RELEASE For Further Information Contact:
Stanley D. Green
Executive Vice President - Finance
and Corporate Development
(501) 521-1141
SOUTHWESTERN ENERGY COMPANY ANNOUNCES IMPROVED
FINANCIAL RESULTS FOR FIRST QUARTER 1997
FAYETTEVILLE, ARKANSAS - April 25, 1997...Southwestern Energy Company
(NYSE:SWN) today announced net income of $12.3 million, or $.50 per share, for
the first quarter ended March 31, 1997, compared to $9.3 million, or $.38 per
share, for the same period in 1996. Revenues for the first quarter of 1997 were
$88.9 million, compared to $64.9 million for the first quarter of 1996.
"Our first quarter operating results reflect both better wellhead
prices and a utility rate increase which became effective in late 1996,"
explained Charles E. Scharlau, Chairman and Chief Executive Officer of
Southwestern. "Operating income of the exploration and production segment was up
26% for the quarter while operating income of the gas distribution segment was
24% higher. Our recently formed energy services group also contributed to the
improved results."
Production Totals 9.9 Bcf Equivalent
Gas and oil production for the three months ended March 31, 1997, was
9.9 billion cubic feet (Bcf) equivalent, down from 10.3 Bcf equivalent for the
same period in 1996. The decrease was primarily the result of lower sales to the
Company's utility subsidiary, partially offset by increased oil production.
Gas production for the three months ended March 31, 1997, was 8.7 Bcf,
compared to 9.9 Bcf for the same period in 1996. The Company's sales to its
utility distribution systems decreased to 4.6 Bcf during the three months ended
March 31, 1997, compared to 5.9 Bcf for the same period in 1996. Weather which
was 16% colder in 1996 resulted in higher demand of the gas distribution
segment. The higher demand enabled the Company to increase its
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production of reserves located on the utility's gathering system. Sales of gas
production to unaffiliated purchasers were 4.1 Bcf in the first quarter of 1997,
up slightly from 4.0 Bcf for the same period in 1996.
Southwestern received an average price of $2.91 per thousand cubic feet
(Mcf) for its gas production during the three months ended March 31, 1997, up
from $2.20 per Mcf for the same period in 1996. The increased average price
reflected the general improvement in the market for natural gas during the first
quarter of 1997 as compared to the same period of 1996.
The Company's oil production was 196 thousand barrels (MBbls) during
the three months ended March 31, 1997, up from 72 MBbls for the same period of
1996. The increase was due primarily to production from properties acquired
during the fourth quarter of 1996.
Rate Increase and Customer Growth Benefit Utility
Deliveries of Southwestern's utility systems to sales and end-use
transportation customers during the first quarter of 1997 reflected the effects
of weather which was 5% warmer than normal and 16% warmer than in the same
period of 1996. The impact of weather on deliveries was partially offset by
growth of 3% in the average number of utility customers. The Company's utility
systems delivered 12.9 Bcf to these customers during the three months ended
March 31, 1997, down from 14.6 Bcf for the same period in 1996.
The Company's average utility rate increased to $5.25 per Mcf during
the first quarter of 1997, up from $4.03 per Mcf for the same period in 1996.
The increase was the result of higher prices paid for purchases of natural gas
which are passed through to customers under automatic adjustment clauses and
rate increases implemented in late 1996 for the northwest Arkansas system.
Southwestern Energy Company is a diversified natural gas company whose
wholly owned subsidiaries are engaged in gas and oil exploration and production,
natural gas gathering, transmission, and marketing, and natural gas
distribution.
# # #
Financial Summary Follows
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Page 1 of 2
SOUTHWESTERN ENERGY COMPANY
AND SUBSIDIARIES
Statements of Income (Unaudited)
Three Months Twelve Months
Periods Ended March 31 1997 1996 1997 1996
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($ in thousands, except per share amounts)
<S> <C> <C> <C> <C>
Operating Revenues
Gas sales $69,262 $60,706 $183,294 $153,948
Gas marketing 14,003 1,068 27,088 12,345
Oil sales 4,016 1,316 10,994 4,406
Gas transportation and other 1,638 1,774 6,019 6,541
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88,919 64,864 227,395 177,240
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Operating Costs and Expenses
Gas purchases - utility 22,283 20,094 45,040 41,632
Gas purchases - marketing 13,112 1,002 26,224 12,018
Operating and general 14,348 11,754 53,103 45,604
Depreciation, depletion and amortization 12,286 11,217 43,463 37,855
Taxes, other than income taxes 1,796 1,279 5,993 4,515
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63,825 45,346 173,823 141,624
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Operating Income 25,094 19,518 53,572 35,616
Interest Expense 3,986 3,215 13,815 11,784
Other Income (Expense) (1,077) (1,126) (3,966) (1,408)
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Income Before Provision for Income Taxes 20,031 15,177 35,791 22,424
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Provision for Income Taxes
Current 6,541 3,383 (2,411) (4,410)
Deferred 1,171 2,460 16,031 13,067
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7,712 5,843 13,620 8,657
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Income Before Extraordinary Item 12,319 9,334 22,171 13,767
Extraordinary Loss Due to Early Retirement
of Long-Term Debt (Net of $185 Tax Benefit) - - - (295)
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Net Income $12,319 $ 9,334 $22,171 $ 13,472
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Earnings Per Share
Income Before Extraordinary Item $0.50 $0.38 $0.90 $0.55
Extraordinary Loss Due to Early Retirement
of Long-Term Debt (Net of $185 Tax Benefit) - - - (0.01)
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Net Income $0.50 $0.38 $0.90 $0.54
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Weighted Average Common
Shares Outstanding 24,720,148 24,701,349 24,709,902 24,889,124
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Cash Flows From Operations
(Before Working Capital Changes) $26,922 $23,888 $85,992 $65,211
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Page 2 of 2
SOUTHWESTERN ENERGY COMPANY
AND SUBSIDIARIES
<TABLE>
<CAPTION>
Operating Statistics
Three Months
Periods Ended March 31 1997 1996
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<S> <C> <C>
Gas Production (Bcf)
Affiliated sales 4.6 5.9
Unaffiliated sales 4.1 4.0
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Total 8.7 9.9
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Average price per Mcf $2.91 $2.20
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Oil production (MBbls) 196 72
Average price per Bbl $20.47 $18.28
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Gas marketing (Bcf) 6.4 1.4
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Distribution deliveries (Bcf):
End-use customers 12.9 14.6
Off-system deliveries 0.9 0.4
Average sales rate $5.25 $4.03
Average number of customers 174,317 169,705
Degree days 2,031 2,421
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Capital Expenditures By Segment
Exploration and production $ 14,880 $ 15,852
Gas distribution 3,021 2,718
Other 244 151
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$ 18,145 $ 18,721
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Condensed Balance Sheets (Unaudited)
Current assets $ 60,584 $ 50,528
Investments 6,750 8,297
Property, plant and equipment, net 569,443 487,357
Other assets 12,030 11,343
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Total assets $648,807 $557,525
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Current liabilities $ 41,731 $ 41,286
Long-term debt, less current maturities 252,114 189,857
Deferred income taxes 131,853 120,024
Other liabilities 4,290 3,972
Shareholders' equity 218,819 202,386
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Total liabilities and shareholders' equity $648,807 $557,525
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