NEWS RELEASE


FOR IMMEDIATE RELEASE                   For Further Information Contact:
                                        Greg D. Kerley
                                        Senior Vice President and
                                          Chief Financial Officer
                                        (501) 521-1141


                 SOUTHWESTERN ENERGY ANNOUNCES EXECUTIVE CHANGES

     Harold Korell to Assume CEO Responsibilities Effective January 1, 1999;
                     Charles Scharlau to Remain as Chairman

         Fayetteville,  Arkansas--October 29, 1998...Southwestern Energy Company
(NYSE: SWN) announced today at a scheduled Board meeting that in accordance with
the Board of Directors planned succession strategy,  Charles E. Scharlau will be
succeeded by Harold Korell as Chief Executive  Officer of the Company  effective
January  1,  1999.  Mr.  Korell  was also  elected  to  Southwestern's  Board of
Directors  effective  immediately.  He has been serving as  President  and Chief
Operating Officer of Southwestern since May of this year.
         Mr.  Scharlau  will  continue as a Director and Chairman of the Board.
 He will be  particularly  involved in the  Company's
efforts to reverse a recent jury verdict adverse to the Company's interest.
         "Harold's  knowledge of exploration and natural gas operations combined
with his  experience,  vision  and  leadership  capabilities  have been and will
continue  to be an  important  asset for the  Company,"  said Mr.  Scharlau.  "I
express  appreciation to the  shareholders  of Southwestern  for allowing me the
privilege of leading the Company and to its Board of Directors and employees for
their support over my many years of service with Southwestern."
         Prior to joining  Southwestern,  Mr. Korell was Senior Vice  President,
Operations for American  Exploration  Company.  He has also held  management and
technical  positions  at  McCormick  Resources,  Tenneco  Oil  Company and Mobil
Corporation.  He  received  a  Professional  Degree in  Chemical  and  Petroleum
Engineering from the Colorado School of Mines.
         Southwestern  Energy  Company  is an  integrated  natural  gas  company
engaged  in gas and oil  exploration  and  production,  natural  gas  gathering,
transmission, and marketing and natural gas distribution.

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