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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) May 15, 2002
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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.)
2350 N. Sam Houston Pkwy. E., Suite 300, Houston, Texas 77032
(Address of principal executive offices, including zip code)
(281) 618-4700
(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 7.(c)
Exhibits Reference
(99.1) Press release dated May 15, 2002, announcing
the approval of an additional $10 million to its previous 2002
capital budget p. 3 - 4
Item 9.
Regulation FD Disclosures
Southwestern Energy Company is furnishing under Item 9 of this Current
Report on Form 8-K the information included as exhibit 99.1 to this report.
Note: The information in this report (including the exhibit) is furnished
pursuant to Item 9 and shall not be deemed to be "filed" for the purposes of
Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the
liabilities of that section. This report will not be deemed an admission as to
the materiality of any information in the report that is required to be
disclosed solely by Regulation FD.
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
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Registrant
DATE: May 15, 2002 BY: /s/ GREG D. KERLEY
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Greg D. Kerley
Executive Vice President
and Chief Financial Officer
- 2 -
Southwestern Energy Company 2350 North Sam Houston Parkway East
Suite 300
Houston, Texas 77032
(281) 618-4700 Fax: (281) 618-4818
NEWS RELEASE
SOUTHWESTERN ENERGY COMPANY ANNOUNCES INCREASE
IN 2002 CAPITAL BUDGET AND ADDITIONAL EARNINGS GUIDANCE
Houston, Texas - May 15, 2002...Southwestern Energy Company (NYSE: SWN)
announced today that its Board of Directors approved the addition of $10 million
to its previous 2002 capital budget, with the increase allocated to the
Company's oil and gas exploration and production (E&P) segment. With this
increase Southwestern's 2002 E&P capital program now totals approximately $71
million. The additional capital will be invested in the Company's infill
drilling program at its Overton Field in East Texas.
"Our previous E&P capital plan was built on a conservative NYMEX price
deck of $2.25 natural gas and $18.00 oil. The lower drilling costs that we are
currently enjoying, combined with significantly higher commodity prices for the
remainder of 2002, have allowed us to accelerate our drilling at Overton. The
economics of these wells at current gas prices and drilling costs add
significant value for our shareholders, so increasing our activity here makes a
lot of sense," stated Harold M. Korell, President and Chief Executive Officer of
Southwestern.
Southwestern Issues Additional Earnings Guidance for 2002
With the recent increase in natural gas prices, the Company updated its
outlook for 2002 with guidance on key financial information over a broader range
of NYMEX natural gas prices. Southwestern's full-year 2002 oil and gas
production target remains at 41.5 - 42.5 Bcfe, unchanged from the guidance that
was issued on February 14, 2002. The following table and corresponding estimated
results assumes various average NYMEX gas price scenarios with a $21.00 per
barrel WTI oil price, and includes current hedges in place:
Gas Prices Earnings Cash Flow EBITDA
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$2.25 per Mcf $10 Million $76 Million $97 Million
$3.00 per Mcf $15 Million $85 Million $106 Million
$3.50 per Mcf $19 Million $91 Million $112 Million
$3.75 per Mcf $21 Million $95 Million $116 Million
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Southwestern Energy Company is primarily focused on natural gas and is
engaged in oil and gas exploration and production, natural gas gathering,
transmission, and marketing, and natural gas distribution. Additional
information on the Company can be found on the Internet at http://www.swn.com.
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
for derivative instruments, 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. 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, 2001.
Contacts: Greg D. Kerley Brad D. Sylvester, CFA
Executive Vice President Manager, Investor Relations
and Chief Financial Officer (281) 618-4897
(281) 618-4803
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Southwestern Energy Company
P.O. Box 1408
Fayetteville, AR 72702-1408
May 15, 2002
Securities and Exchange Commission
ATTN: Filing Desk, Stop 1-4
450 Fifth Street, N.W.
Washington, DC 20549-1004
Gentlemen:
Pursuant to regulations of the Securities and Exchange Commission, submitted
herewith for filing on behalf of Southwestern Energy Company is Form 8-K dated
May 15, 2002.
This filing is being effected by direct transmission to the Commission's EDGAR
System.
Very truly yours,
Stan Wilson
Controller