SWN(US:SWN)2024-05-02 20:21Production and Sales - In Q1 2024, the total net production was 376 Bcfe, with 86% being natural gas, 12% NGLs, and 2% oil[6] - In Appalachia, total production was 238 Bcfe, with an average lateral length of 16,378 feet and an average well cost of $824 per lateral foot[9] - In Haynesville, total production was 138 Bcfe, with an average lateral length of 10,458 feet and an average well cost of $1,816 per lateral foot[10] - Gas sales amounted to $584 million, down 48.9% from $1,145 million year-over-year[29] Financial Performance - For Q1 2024, total operating revenues were $1,417 million, a decrease of 33.1% from $2,118 million in Q1 2023[29] - The company reported a net loss of $1,535 million, compared to a net income of $1,939 million in the same quarter last year[29] - Operating income (loss) was $(2,057) million, a significant decline from $606 million in Q1 2023[29] - Basic and diluted earnings per share were both $(1.39), compared to $1.76 in Q1 2023[29] - Adjusted net income for Q1 2024 was $131 million, down from $346 million in Q1 2023, reflecting a decrease of approximately 62%[43] - Adjusted diluted earnings per share for Q1 2024 was $0.12, down from $0.31 in Q1 2023, reflecting a decrease of 61.29%[46] - The company reported a net loss of $1.54 billion in Q1 2024, compared to a net income of $1.94 billion in Q1 2023, highlighting a significant shift in financial performance[48] Costs and Expenses - The average unit cost per Mcfe increased to $1.12 in Q1 2024 from $1.05 in Q1 2023[8] - The average realized price per Mcfe, excluding derivatives, was $2.20 in Q1 2024, down from $3.48 in Q1 2023, a decrease of 37%[5] - The average realized oil price, including derivatives, was $63.09 per Bbl in Q1 2024, compared to $58.17 per Bbl in Q1 2023[5] - The company incurred merger-related expenses of $9 million, reflecting costs associated with the proposed transaction with Chesapeake[29] - The company incurred $2.09 billion in impairments during Q1 2024, which significantly impacted net income[48] - The company reported a depreciation, depletion, and amortization expense of $262 million for Q1 2024, down from $313 million in Q1 2023, a reduction of approximately 16.3%[33] Capital Investments - Capital investments for Q1 2024 totaled $538 million, with 29 wells drilled, 27 completed, and 18 placed to sales[6] - Capital investments for the three months ended March 31, 2024, were $521 million, compared to $670 million in the same period of 2023, indicating a decrease of 22.3%[33] Assets and Liabilities - Total assets decreased from $11,991 million as of December 31, 2023, to $10,398 million as of March 31, 2024, representing a decline of approximately 13.3%[31] - Total current liabilities rose from $1,729 million as of December 31, 2023, to $2,024 million as of March 31, 2024, an increase of approximately 17.1%[31] - Long-term debt decreased from $3,947 million as of December 31, 2023, to $3,609 million as of March 31, 2024, a decline of about 8.6%[31] - The company’s total equity decreased from $5,888 million as of December 31, 2023, to $4,366 million as of March 31, 2024, a decline of approximately 25.8%[31] Cash Flow - Net cash provided by operating activities decreased to $496 million in Q1 2024 from $1,137 million in Q1 2023, a decline of 56.32%[48] - Free cash flow deficit for Q1 2024 was $99 million, compared to a deficit of $0 in Q1 2023, indicating a significant deterioration in cash flow management[48] - Changes in operating assets and liabilities negatively impacted cash flow by $66 million in Q1 2024, compared to a negative impact of $373 million in Q1 2023[48] Strategic Initiatives and Future Outlook - The company has discontinued providing guidance due to a pending merger with Chesapeake Energy Corporation[13] - The company anticipates future growth and operational performance improvements as part of its strategic initiatives, including the proposed merger with Chesapeake[18] - The proposed transaction with Chesapeake is subject to various risks, including regulatory approvals and integration challenges[20] - The company will not host a conference call or webcast to discuss Q1 2024 results due to the pending merger[14]