EXHIBIT 99.1
2350 N. Sam Houston Parkway East |
NEWS RELEASE
SOUTHWESTERN ENERGY ANNOUNCES SECOND QUARTER 2003 RESULTS AND
INCREASE IN PLANNED CAPITAL EXPENDITURES
High Commodity Prices Help Drive Record Earnings
Houston, Texas - - July 29, 2003...Southwestern Energy Company (NYSE: SWN) today reported net income of $9.5 million, or $0.26 per diluted share, for the second quarter of 2003, up from $1.8 million, or $0.07 per share, for the same period in 2002. Discretionary cash flow(1) was $28.5 million during the second quarter of 2003, compared to $17.4 million in the second quarter of 2002. The increases in earnings and discretionary cash flow resulted primarily from higher realized gas and oil prices.
Net income for the six months ended June 30, 2003 was $23.2 million, or $.71 per share, compared to $8.5 million, or $.33 per share, for the same period in 2002. Discretionary cash flow was $65.2 million for the first six months of 2003, compared to $43.3 million for the same period of 2002.
"Our operating plan for 2003 has gone very well through the first six months," stated Harold M. Korell, President and Chief Executive Officer of Southwestern Energy. "We are beginning to see the impact of our Overton Field drilling program in our production volumes and look for this production growth to continue throughout the remainder of the year. We have also had solid results in our drilling program in the Arkoma Basin, particularly in our Ranger Anticline area. As a result of our strong cash flow and drilling results, we are increasing the capital budget for our E&P program from $150.0 million to $165.0 million, bringing our total planned expenditures to $173.6 million for 2003. The planned increase is primarily directed toward additional drilling in the Arkoma Basin and at our Overton Field."
Higher Commodity Prices and Production Levels Highlight Quarter
Operating income for the company's exploration and production segment was $21.5 million for the three months ended June 30, 2003, up from $10.1 million for the same period in 2002. The increase in operating income primarily resulted from higher gas and oil prices.
Gas and oil production for the three months ended March 31, 2003 was 10.1 Bcfe, up 14% from 8.9 Bcfe produced during the first quarter of 2003. Southwestern produced 10.3 Bcfe in the second quarter of 2002. The company's third quarter 2003 production target is 10.5 - 11.5 Bcfe and its 2003 full-year oil and gas production target is 42 - 44 Bcfe, compared to 40.1 Bcfe produced during 2002.
Gas prices realized for the company's production averaged $4.28 per Mcf for the quarter and $4.22 per Mcf for the first half of 2003, up 45% and 48%, respectively, from the same periods in 2002. The company realized an average price of $27.54 per barrel for its oil production during the six months ended June 30, 2003, compared to $20.10 per barrel for the same period of 2002.
The company's commodity hedging activities lowered its average gas price by $.86 per Mcf for the second quarter and $1.51 per Mcf for the first half of 2003. On a comparative basis, the company's hedging activities had the effect of decreasing its average gas price during the second quarter of 2002 by $.37 per Mcf and increasing its average price by $.04 per Mcf during the first six months of 2002. Southwestern's hedging activities also lowered its average oil price by $1.40 per barrel during the second quarter and $2.81 per barrel for the first half of 2003.
Lease operating expenses for the company's E&P segment decreased during the second quarter of 2003 to $.36 per Mcf equivalent (Mcfe) from $.42 per Mcfe in the second quarter of 2002. However, taxes other than income taxes increased during the quarter to $.23 per Mcfe, up from $.18 per Mcfe in the same period in 2002, due to higher realized commodity prices. General and administrative expenses for the quarter increased to $.40 per Mcfe compared to $.28 per Mcfe in the same period in 2002, primarily due to increased pension costs and the accrual of incentive compensation costs. The amortization rate per Mcfe for the company's full cost pool was $1.17 per Mcfe during the second quarter of 2003 compared to $1.16 per Mcfe in the same period in 2002.
During the first six months of 2003, Southwestern participated in 68 wells that included 49 producers, 8 dry holes and 11 wells that were still in progress at June 30, 2003. This well count is more than double the 32 wells the company participated in during the first half of 2002, and is approximately equal to the 65 wells Southwestern participated in during all of 2002. On a year-to-date basis, the company has invested $75.2 million in its E&P program, compared to $37.8 million invested in the first half of 2002.
At its Overton Field in Smith County, Texas, Southwestern has drilled and completed 21 wells and was in the process of drilling five wells and completing three wells at June 30, 2003. Southwestern's accelerated drilling program continues to set production highs for the field. At year-end 2002, gross production from the field was approximately 27 MMcf per day. Currently, production is approximately 54 MMcf per day. The company currently plans to drill a total of 55 wells in the field during 2003.
In the Arkoma Basin, Southwestern has participated in 28 wells through the first six months of 2003, with 18 producers, six dry holes and four wells in progress at June 30, 2003. The company continues to drill solid producers in its Ranger Anticline area. Through the first six months of 2003, Southwestern has drilled six wells in the area, of which three have been put on production at an average rate of 2.5 MMcf per day and the other three are currently being completed. In total, the company has drilled 20 wells in this area over the last few years with 17 successful completions. Earlier this year, the company obtained regulatory approval to reduce well spacing in this area from 640-acres per well to 80-acres per well. The company currently holds 4,500 gross developed acres and 35,200 gross exploratory acres in this area. Southwestern's working interest in these wells ranges from 73% to 100% and the company plans to drill six to eight additional wells in the area in 2003.
During the second quarter of 2003, the company drilled a sidetrack of its Shiloh prospect in Vermilion Parish, Louisiana. This well was targeting the Cris R sand at approximately 14,000 feet. Due to mechanical problems, the company was unable to evaluate the sidetrack hole and has temporarily suspended operations on this well. Southwestern is currently evaluating its alternatives, which may involve bringing in another working interest owner to jointly participate.
Also in the second quarter, Southwestern drilled a third well on its North Grosbec discovery in Assumption Parish, Louisiana. The company held a 33% working interest in the Brown-Sonnier #1 well which targeted the P-10 sand at a depth of 17,200 feet. This well was plugged and abandoned after log analysis indicated that the sand was wet. Current gross production from the two existing North Grosbec wells continues to be strong at a combined rate of 14.6 MMcf per day and 500 barrels of oil per day.
Southwestern plans to spud its Coleburn prospect located in Jefferson Parish, Louisiana, during the third quarter. This well targets the Tex W sand at 12,700 feet and Southwestern will operate this well with a 50% working interest. The company also plans to drill up to three exploratory wells in its Duck Lake 3-D survey area in St. Martin and St. Mary Parishes later this year. The first scheduled test is the company's Canvasback prospect, an 80 Bcfe gross reserve potential prospect expected to spud late in the third quarter, which will test the Liebusella sands at 18,200 feet.
Utility Subsidiary Reaches Settlement on Rate Increase Request
The company's utility systems realized a seasonal operating loss of $2.1 million in the second quarter of 2003, compared to a loss of $1.7 million for the same period in 2002. Operating income for Southwestern's utility systems was $5.9 million during the first six months of 2003, down from $6.9 million in 2002. The comparative decreases in operating income in 2003 were primarily due to higher operating and general and administrative expenses. Weather in the utility's service territory during the first six months of 2002 was 4% colder than normal and 12% colder than the prior year.
In November 2002, the company's utility subsidiary, Arkansas Western Gas Company (AWG), filed an $11.0 million rate increase request with the Arkansas Public Service Commission (APSC). On July 17, 2003, AWG executed a Joint Stipulation and Settlement Agreement (Settlement Agreement) with the Staff of the APSC and various other consumer groups that would resolve all outstanding issues relating to AWG's rate increase request. Under the terms of the Settlement Agreement, AWG would receive a rate increase of $4.2 million annually, exclusive of costs to be recovered through its purchase gas adjustment clause. AWG would also be entitled to recover certain non-gas costs totaling $2.9 million through its purchase gas adjustment clause over a two-year period. The difference between the $11.0 million rate adjustment requested by AWG and the rate adjustment contained in the Settlement Agreement primarily results from a reduction in AWG's requested return on equity and a change in AWG's assumed capital structure. In the rate increase request that was filed with the APSC, AWG assumed an allowed return on equity of 12.9% and a capital structure of 48% debt and 52% equity. The Settlement Agreement provides for an allowed return on equity of 9.9% and an assumed capital structure of 52% debt and 48% equity. The 9.9% equity return is in line with the equity return approved in recent settlements that have been approved for the other two Arkansas local gas distribution companies.
The proposed Settlement Agreement is subject to the approval of the APSC. A scheduled hearing was held at the APSC on July 22nd and 23rd to hear testimony of AWG, the Staff of the APSC and the various other intervening parties that support the Settlement Agreement as well as the testimony of the Office of the Attorney General of the State of Arkansas who opposes the Settlement Agreement. The APSC has requested the various parties file post-hearing briefs addressing the proposed Stipulation and Settlement Agreement by August 7th and the effective date of any rate increase has been extended until the first of October. AWG's last rate increase was approved in December 1996 for its Northwest region and in December 1997 for its Northeast region.
Marketing and Other Results Remain Steady
The company's marketing operations reported operating income of $0.5 million for the second quarter of 2003 and $1.2 million for the six months ended June 30, 2003, compared to $0.5
million and $1.3 million, respectively, for the same periods in 2002. Southwestern's marketing and transportation operations relate primarily to the marketing of its own gas production and some third-party gas that is sold primarily to industrial customers connected to its gas distribution systems. The company's results related to its interest in the NOARK partnership was a gain of $1.4 million during the first six months of 2003 compared to a loss of $.4 million during the first six months of 2002. The 2003 results include a pre-tax gain of $1.3 million related to the sale of a non-strategic portion of NOARK's pipeline.
Southwestern Updates Guidance for 2003
The following statements regarding estimates for the year 2003 are considered to be forward-looking statements and Southwestern Energy's actual financial and operating results could differ materially from those projected as a result of certain factors listed at the end of this press release. Further, these projections do not reflect the potential impact of unknown events that may occur subsequent to this press release.
The following table demonstrates different NYMEX price scenarios and their corresponding estimated impact on the company's results for 2003, including current hedges in place, and incorporates actual results for the first six months of 2003:
NYMEX | Discretionary | |||||||
Commodity Prices | Earnings | Operating Income | Cash Flow (1) | EBITDA (2) | ||||
$4.25 Gas | $36 - $39 | $77- $80 | $120 - $123 | $137 - $140 | ||||
$24.50 Oil | Million | Million | Million | Million | ||||
$5.00 Gas | $43 - $46 | $90 - $93 | $133- $136 | $150 - $153 | ||||
$28.00 Oil | Million | Million | Million | Million | ||||
$6.00 Gas | $55 - $58 | $109 - $112 | $152 - $155 | $169 - $172 | ||||
$28.00 Oil | Million | Million | Million | Million |
(1) Discretionary cash flow is defined as net cash provided by operating activities before changes in operating assets and liabilities. The company has included information concerning discretionary cash flow primarily because changes in operating assets and liabilities relate to the timing of cash receipts and disbursements which the company may not control and may not relate to the period in which the operating activities occurred. Further, management uses this measure to assess the company's ability to generate cash to fund its exploration and development drilling activities and to service or incur debt. Discretionary cash flow should not be considered in isolation or as a substitute for net cash provided by operating activities prepared in accordance with generally accepted accounting principles. The table below reconciles discretionary cash flow with net cash provided by operating activities as derived from the company's financial information.
3 Months Ended June 30, | 6 Months Ended June 30, | ||||||||||
2003 | 2002 | 2003 | 2002 | ||||||||
Net cash provided by operating activities | $ | 31,736 | $ | 20,904 | $ | 70,308 | $ | 42,256 | |||
Add back (deduct): | |||||||||||
Change in operating assets and liabilities | (3,208) | (3,531 | (5,094) | 1,001 | |||||||
Discretionary cash flow | $ | 25,528 | $ | 17,373 | $ | 65,214 | $ | 43,257 |
The company does not forecast changes in operating assets and liabilities and, therefore, a reconciliation of the company's forecasted discretionary cash flow to net cash provided by operating activities is not provided.
(2) EBITDA is defined as net income plus interest, income tax expense, depreciation, depletion and amortization. Southwestern has included information concerning EBITDA because it is used by certain investors as a measure of the ability of a company to service or incur indebtedness and because it is a financial measure commonly used in the energy industry. EBITDA should not be considered in isolation or as a substitute for net income, net cash provided by operating activities or other income or cash flow data prepared in accordance with generally accepted accounting principles or as a measure of the company's profitability or liquidity. EBITDA as defined above may not be comparable to similarly titled measures of other companies. Net income is a financial measure calculated and presented in accordance with generally accepted accounting principles. The table below reconciles net income with EBITDA as derived from the company's financial information.
2003 Guidance | ||||||
NYMEX Commodity Price Assumptions | ||||||
$425 Gas | $5.00 Gas | $6.00 Gas | ||||
$24.50 Oil | $28.00 Oil | $28.00 Oil | ||||
(in millions) | ||||||
Net income | $36-$39 | $43-$46 | $55-$58 | |||
Add back: | ||||||
Provision for income taxes - deferred | 22-23 | 26-28 | 34-36 | |||
Interest expense | 17-18 | 17-18 | 17-18 | |||
Depreciation, depletion and amortization | 60-61 | 60-61 | 60-61 | |||
EBITDA | $137-$140 | $150-$153 | $169-$172 |
Southwestern's executive management team will host a teleconference call on Wednesday, July 30th at 10:30 a.m. Eastern to discuss the company's second quarter 2003 results. The toll-free number to call is 800-967-7185 and the reservation number is 146862. The teleconference can also be heard "live" over the Internet at the company's website: http://www.swn.com. RealPlayer 8 Basic is required to listen to the teleconference and can be downloaded from the website.
Southwestern Energy Company is an independent energy company primarily focused on the exploration for and production of natural gas. Additional information on the company can be found on the Internet at http://www.swn.com.
Contacts: | Greg D. Kerley Executive Vice President and Chief Financial Officer (281) 618-4803 | Brad D. Sylvester, CFA Manager, Investor Relations (281) 618-4897 |
All statements, other than historical financial information, may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or
developments may differ materially from those in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include, but are not limited to, the timing and extent of changes in commodity prices for gas and oil, the timing and extent of the company's success in discovering, developing, producing, and estimating reserves, property acquisition or divestiture activities that may occur, the effects of weather and regulation on the company's gas distribution segment, increased competition, legal and economic factors, governmental regulation, the financial impact of accounting regulations and critical accounting policies, changing market conditions, the comparative cost of alternative fuels, conditions in capital markets and changes in interest rates, availability of oil field services, drilling rigs, and other equipment, as well as various other factors beyond the company's control, and any other factors listed in the reports the company has filed with the Securities and Exchange Commission. A discussion of these and other factors affecting the company's performance is included in the company's periodic reports filed with the Securities and Exchange Commission including its Annual Report on Form 10-K for the year ended December 31, 2002.
Financial Summary Follows
# # #
OPERATING STATISTICS (Unaudited) | Page 1 of 5 | ||||||||||
Southwestern Energy Company and Subsidiaries | |||||||||||
Three Months | Six Months | ||||||||||
Periods Ended June 30 | 2003 | 2002 | 2003 | 2002 | |||||||
(in thousands, except share/per share amounts) | |||||||||||
Exploration & Production | |||||||||||
Production | |||||||||||
Affiliated gas sales (MMcf) | 1,790 | 1,328 | 3,456 | 3,179 | |||||||
Unaffiliated gas sales (MMcf) | 7,469 | 7,800 | 13,904 | 15,180 | |||||||
Total Gas production (MMcf) | 9,259 | 9,128 | 17,360 | 18,359 | |||||||
Oil production (MBbls) | 139 | 195 | 264 | 378 | |||||||
Total Equivalent production (MMcfe) | 10,093 | 10,298 | 18,944 | 20,627 | |||||||
Commodity Prices | |||||||||||
Average realized gas price per Mcf | $4.28 | $2.96 | $4.22 | $2.86 | |||||||
Average realized oil price per Bbl | $27.40 | $22.62 | $27.54 | $20.10 | |||||||
Operating Expenses per Mcfe | |||||||||||
Lease operating expenses | $0.36 | $0.42 | $0.39 | $0.43 | |||||||
Taxes, other that income taxes | $0.23 | $0.18 | $0.25 | $0.16 | |||||||
General & administrative expenses | $0.40 | $0.28 | $0.42 | $0.28 | |||||||
Full cost pool amortization | $1.17 | $1.16 | $1.17 | $1.16 | |||||||
Marketing | |||||||||||
Gas volumes marketed (MMcf) | 10,207 | 12,363 | 18,723 | 24,639 | |||||||
Gas Distribution | |||||||||||
Deliveries (Bcf) | |||||||||||
Sales volumes | 1.9 | 1.9 | 10.1 | 9.7 | |||||||
End-use transportation | 1.9 | 2.0 | 4.4 | 4.3 | |||||||
Off-system transportation | 0.1 | 0.7 | 0.1 | 0.7 | |||||||
Total deliveries | 3.9 | 4.6 | 14.6 | 14.7 | |||||||
Average number of customers | 138,671 | 136,488 | 139,611 | 137,280 | |||||||
Average sales rate per Mcf | $9.74 | $7.66 | $7.34 | $6.32 | |||||||
Heating weather - degree days | 279 | 228 | 2,554 | 2,277 | |||||||
- percent of normal | 90% | 74% | 104% | 92% |
STATEMENT OF OPERATIONS (Unaudited) | Page 2 of 5 | ||||||||||
Southwestern Energy Company and Subsidiaries | |||||||||||
Three Months | Six Months | ||||||||||
Periods Ended June 30 | 2003 | 2002 | 2003 | 2002 | |||||||
(in thousands, except share/per share amounts) | |||||||||||
Operating Revenues | |||||||||||
Gas sales | $ | 49,286 | $ | 37,606 | $ | 126,993 | $ | 104,592 | |||
Gas marketing | 11,667 | 12,228 | 24,273 | 21,930 | |||||||
Oil Sales | 3,821 | 4,416 | 7,280 | 7,599 | |||||||
Gas transportation and other | 1,713 | 1,754 | 6,596 | 3,541 | |||||||
66,487 | 56,004 | 165,142 | 137,662 | ||||||||
Operating Costs and Expenses | |||||||||||
Gas purchases - utility | 2,199 | 3,804 | 29,247 | 28,572 | |||||||
Gas purchases - marketing | 10,850 | 11,454 | 22,408 | 20,127 | |||||||
Operating expenses | 9,248 | 9,505 | 18,294 | 19,063 | |||||||
General and administrative expenses | 7,663 | 6,034 | 15,546 | 11,824 | |||||||
Depreciation, depletion and amortization | 13,686 | 13,868 | 26,069 | 27,738 | |||||||
Taxes, other than income taxes | 2,895 | 2,439 | 5,958 | 4,599 | |||||||
46,541 | 47,104 | 117,522 | 111,923 | ||||||||
Operating Income | 19,946 | 8,900 | 47,620 | 25,739 | |||||||
Interest Expense | |||||||||||
Interest on long-term debt | 4,075 | 5,345 | 9,002 | 10,699 | |||||||
Other interest charges | 337 | 336 | 722 | 658 | |||||||
Interest capitalized | (501) | (360) | (866) | (651) | |||||||
3,911 | 5,321 | 8,858 | 10,706 | ||||||||
Other Income (Expense) | (63) | (232) | 1,359 | (474) | |||||||
Income Before Income Taxes, Minority Interest & Accounting Change | 15,972 | 3,347 | 40,121 | 14,559 | |||||||
Minority Interest in Partnership | (609) | (469) | (1,374) | (762) | |||||||
Income Before Income Taxes & Accounting Change | 15,363 | 2,878, | 38,747 | 13,797 | |||||||
Provision for Income Taxes - Deferred | 5,837 | 1,108 | 14,724 | 5,312 | |||||||
Income Before Accounting Change | 9,526 | 1,770 | 24,023 | 8,485 | |||||||
Cumulative Effect of Adoption of Accounting Principle | - | - | (855) | - | |||||||
Net Income | $ | 9,526 | $ | 1,770 | $ | 23,168 | $ | 8,485 | |||
Basic Earnings Per Share: | |||||||||||
Income Before Accounting Change | $0.27 | $0.07 | $0.76 | $0.34 | |||||||
Cumulative Effect of Adoption of Accounting Principle | - | - | (0.03) | - | |||||||
Net Income | $0.27 | $0.07 | $0.73 | $0.34 | |||||||
Diluted Earnings Per Share: | |||||||||||
Income Before Accounting Change | $0.26 | $0.07 | $0.74 | $0.33 | |||||||
Cumulative Effect of Adoption of Accounting Principle | - | - | (0.03) | - | |||||||
Net Income | $0.26 | $0.07 | $0.71 | $0.33 | |||||||
Weighted Average Common Shares Outstanding | |||||||||||
Basic | 35,053,171 | 25,208,974 | 31,614,921 | 25,146,550 | |||||||
Diluted | 36,087,726 | 26,131,452 | 32,558,360 | 25,995,692 |
BALANCE SHEETS (Unaudited) | Page 3 of 5 | |||||
Southwestern Energy Company and Subsidiaries | ||||||
June 30, | 2003 | 2002 | ||||
(in thousands) | ||||||
ASSETS | ||||||
Current Assets | $ 65,414 | $ 65,220 |
| |||
Investments | 14,231 | 15,177 | ||||
Property, Plant and Equipment, at cost | 1,373,737 | 1,264,556 | ||||
Less: Accumulated depreciation, depletion and amortization | 680,391 | 633,335 | ||||
693,346 | 631,221 | |||||
Other Assets | 15,788 | 13,359 |
| |||
$ 788,779 | $ 724,977 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Current Liabilities | $ 77,452 |
| $ 58,581 | |||
Long-Term Debt | 247,800 | 344,500 | ||||
Deferred Income Taxes | 125,486 | 119,719 | ||||
Other Liabilities | 27,654 |
| 7,721 | |||
Commitments and Contingencies | ||||||
Minority Interest in Partnership | 13,298 | 13,161 | ||||
Shareholders' Equity | ||||||
Common stock, $.10 par value; authorized 75,000,000 shares, issued 37,225,584 shares | 3,723 | 2,774 | ||||
Additional paid-in capital | 121,149 | 19,433 | ||||
Retained earnings | 221,156 | 192,162 | ||||
Accumulated other comprehensive income (loss) | (26,299) |
| (6,354) | |||
319,729 | 208,015 | |||||
Less: Common stock in treasury, at cost, 1,650,492 shares in 2003 and 2,054,972 shares in 2002 | 18,388 | 23,571 | ||||
Unamortized cost of restricted shares issued under stock incentive plan, 496,429, shares in 2003 and 420,562 shares in 2002 | 4,252 | 3,149 | ||||
297,089 | 181,295 | |||||
$ 788,779 | $ 724,977 |
STATEMENTS OF CASH FLOWS (Unaudited) | Page 4 of 5 | |||||||
Southwestern Energy Company and Subsidiaries | ||||||||
Six Months | ||||||||
Periods Ended June 30 | 2003 | 2002 | ||||||
(in thousands) | ||||||||
Cash Flows From Operating Activities | ||||||||
Net Income | $ | 23,168 | $ | 8,485 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation, depletion and amortization | 27,668 | 28,939 | ||||||
Deferred income taxes | 14,724 | 5,312 | ||||||
Ineffectiveness of cash flow hedges | (556) | - | ||||||
Equity in (income) loss of NOARK partnership | (1,444) | 361 | ||||||
Minority interest in partnership | 799 | 160 | ||||||
Cumulative effect of adoption of accounting principle | 855 | - | ||||||
Change in operating assets and liabilities | 5,094 | (1,001) | ||||||
Net cash provided by operating activities | 70,308 | 42,256 | ||||||
Cash Flows From Investing Activities | ||||||||
Capital expenditures | (80,468) | (40,774) | ||||||
Distribution from NOARK partnership | 2,500 | - | ||||||
Decrease in gas stored underground | (1,705) | 1,239 | ||||||
Other items | (479) | 1,927 | ||||||
Net cash used in investing activities | (80,152) | (37,608) | ||||||
Cash Flow From Financing Activities | ||||||||
Issuance of common stock | 103,213 | - | ||||||
Payments on revolving long-term debt | (184,900) | (120,200) | ||||||
Borrowings under revolving long-term debt | 90,300 | 114,700 | ||||||
Change in bank drafts outstanding | 218 | - | ||||||
Proceeds from exercise of common stock options | 1,292 | - | ||||||
Minority interest contributions | 44 | - | ||||||
Net cash provided by (used in) financing activities | (10,167) | (5,500) | ||||||
Increase (decrease) in cash | 323 | (852) | ||||||
Cash at beginning of year | 1,690 | 3,641 | ||||||
Cash at end of period | $ | 2,013 | $ | 2,789 |
SEGMENT INFORMATION (Unaudited) | Page 5 of 5 | ||||||||||||||
Southwestern Energy Company and Subsidiaries | |||||||||||||||
Exploration | Marketing, | ||||||||||||||
and | Gas | Transportation | |||||||||||||
Production | Production | and Other | Eliminations | Total | |||||||||||
(in thousands) | |||||||||||||||
Quarter Ending June 30, 2003 | |||||||||||||||
Revenues | $ | 43,489 | $ | 20,637 | $ | 50,009 | $ | (47,648) | $ | 66,487 | |||||
Gas purchases | - | 11,467 | 49,079 | (47,497) | 13,049 | ||||||||||
Operating expenses | 3,615 | 5,662 | - | (29) | 9,248 | ||||||||||
General and administrative expenses | 4,000 | 3,490 | 295 | (122) | 7,663 | ||||||||||
Depreciation, depletion & amortization | 12,117 | 1,534 | 35 | - | 13,686 | ||||||||||
Taxes, other than income taxes | 2,281 | 592 | 22 | - | 2,895 | ||||||||||
Operating Income (Loss) | $ | 21,476 | $ | (2,108) | $ | 578 | $ | - | $ | 19,946 | |||||
Capital Investments | $ | 46,784 | $ | 3,099 | $ | 216 | $ | - | $ | 50,099 | |||||
Quarter Ending June 30, 2002 | |||||||||||||||
Revenues | $ | 31,416 | $ | 16,883 | $ | 38,125 | $ | (30,420) | $ | 56,004 | |||||
Gas purchases | - | 8,300 | 37,238 | (30,280) | 15,258 | ||||||||||
Operating expenses | 4,375 | 5,152 | - | (22) | 9,505 | ||||||||||
General and administrative expenses | 2,887 | 3,008 | 257 | (118) | 6,034 | ||||||||||
Depreciation, depletion & amortization | 12,248 | 1,564 | 56 | - | 13,868 | ||||||||||
Taxes, other than income taxes | 1,843 | 577 | 19 | - | 2,439 | ||||||||||
Operating Income (Loss) | $ | 10,063 | $ | (1,718) | $ | 555 | $ | - | $ | 8,900 | |||||
Capital Investments | $ | 17,954 | $ | 1,412 | $ | 39 | $ | - | $ | 19,405 | |||||
Six Months Ending June 30, 2003 | |||||||||||||||
Revenues | $ | 83,225 | $ | 78,144 | $ | 98,041 | $ | (94,268) | $ | 165,142 | |||||
Gas purchases | - | 49,634 | 95,952 | (93,931) | 51,655 | ||||||||||
Operating expenses | 7,342 | 11,047 | - | (95) | 18,294 | ||||||||||
General and administrative expenses | 7865 | 7,262 | 661 | (242) | 15,546 | ||||||||||
Depreciation, depletion & amortization | 22,931 | 3,068 | 70 | - | 26,069 | ||||||||||
Taxes, other than income taxes | 4,674 | 1,236 | 48 | - | 5,958 | ||||||||||
Operating Income | $ | 40,413 | $ | 5,897 | $ | 1,310 | $ | - | $ | 47,620 | |||||
Capital Investments | $ | 75,232 | $ | 4,940 | $ | 296 | $ | - | $ | 80,468 | |||||
Six Months Ending June 30, 2002 | |||||||||||||||
Revenues | $ | 59,836 | $ | 65,340 | $ | 64,860 | $ | (52,374) | $ | 137,662 | |||||
Gas purchases | - | 37,918 | 62,832 | (52,051) | 48,699 | ||||||||||
Operating expenses | 8,855 | 10,295 | - | (87) | 19,063 | ||||||||||
General and administrative expenses | 5,718 | 5,840 | 502 | (236) | 11,824 | ||||||||||
Depreciation, depletion & amortization | 24,528 | 3,129 | 81 | - | 27,738 | ||||||||||
Taxes, other than income taxes | 3,342 | 1,213 | 44 | - | 4,599 | ||||||||||
Operating Income | $ | 17,393 | $ | 6,945 | $ | 1,401 | $ | - | $ | 25,739 | |||||
Capital Investments | $ | 37,835 | $ | 2,760 | $ | 179 | $ | - | $ | 40,774 |