Intrinsic value of Southwestern Energy - SWN

Previous Close

$5.34

  Intrinsic Value

$0.84

stock screener

  Rating & Target

str. sell

-84%

Previous close

$5.34

 
Intrinsic value

$0.84

 
Up/down potential

-84%

 
Rating

str. sell

We calculate the intrinsic value of SWN stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 3.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  3,267
  3,342
  3,428
  3,525
  3,631
  3,749
  3,876
  4,014
  4,163
  4,323
  4,494
  4,676
  4,871
  5,077
  5,296
  5,528
  5,774
  6,034
  6,308
  6,598
  6,904
  7,226
  7,566
  7,925
  8,302
  8,699
  9,117
  9,557
  10,020
  10,507
Variable operating expenses, $m
  6,211
  6,354
  6,517
  6,700
  6,903
  7,126
  7,369
  7,632
  7,915
  8,218
  8,543
  8,890
  9,259
  9,652
  10,068
  10,509
  10,976
  11,470
  11,992
  12,543
  13,124
  13,737
  14,384
  15,065
  15,782
  16,537
  17,332
  18,168
  19,048
  19,973
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  6,211
  6,354
  6,517
  6,700
  6,903
  7,126
  7,369
  7,632
  7,915
  8,218
  8,543
  8,890
  9,259
  9,652
  10,068
  10,509
  10,976
  11,470
  11,992
  12,543
  13,124
  13,737
  14,384
  15,065
  15,782
  16,537
  17,332
  18,168
  19,048
  19,973
Operating income, $m
  -2,944
  -3,011
  -3,089
  -3,176
  -3,272
  -3,378
  -3,493
  -3,617
  -3,751
  -3,895
  -4,049
  -4,214
  -4,388
  -4,574
  -4,772
  -4,981
  -5,202
  -5,436
  -5,684
  -5,945
  -6,220
  -6,511
  -6,817
  -7,140
  -7,480
  -7,838
  -8,215
  -8,611
  -9,028
  -9,467
EBITDA, $m
  -2,427
  -2,483
  -2,547
  -2,619
  -2,698
  -2,785
  -2,880
  -2,983
  -3,093
  -3,212
  -3,339
  -3,475
  -3,619
  -3,772
  -3,935
  -4,107
  -4,290
  -4,483
  -4,687
  -4,902
  -5,129
  -5,369
  -5,622
  -5,888
  -6,168
  -6,463
  -6,774
  -7,101
  -7,445
  -7,806
Interest expense (income), $m
  75
  242
  248
  255
  263
  273
  283
  294
  306
  319
  333
  349
  365
  382
  401
  420
  441
  463
  487
  512
  538
  565
  595
  625
  658
  692
  728
  766
  805
  847
  891
Earnings before tax, $m
  -3,185
  -3,259
  -3,344
  -3,439
  -3,544
  -3,660
  -3,786
  -3,923
  -4,070
  -4,229
  -4,398
  -4,578
  -4,771
  -4,975
  -5,192
  -5,422
  -5,666
  -5,923
  -6,195
  -6,483
  -6,786
  -7,105
  -7,443
  -7,798
  -8,172
  -8,566
  -8,980
  -9,416
  -9,875
  -10,358
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -3,185
  -3,259
  -3,344
  -3,439
  -3,544
  -3,660
  -3,786
  -3,923
  -4,070
  -4,229
  -4,398
  -4,578
  -4,771
  -4,975
  -5,192
  -5,422
  -5,666
  -5,923
  -6,195
  -6,483
  -6,786
  -7,105
  -7,443
  -7,798
  -8,172
  -8,566
  -8,980
  -9,416
  -9,875
  -10,358

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  7,408
  7,579
  7,773
  7,992
  8,234
  8,500
  8,790
  9,103
  9,441
  9,803
  10,191
  10,604
  11,045
  11,513
  12,009
  12,536
  13,093
  13,682
  14,304
  14,961
  15,655
  16,386
  17,157
  17,969
  18,825
  19,726
  20,674
  21,671
  22,721
  23,825
Adjusted assets (=assets-cash), $m
  7,408
  7,579
  7,773
  7,992
  8,234
  8,500
  8,790
  9,103
  9,441
  9,803
  10,191
  10,604
  11,045
  11,513
  12,009
  12,536
  13,093
  13,682
  14,304
  14,961
  15,655
  16,386
  17,157
  17,969
  18,825
  19,726
  20,674
  21,671
  22,721
  23,825
Revenue / Adjusted assets
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
Average production assets, $m
  5,472
  5,598
  5,742
  5,904
  6,083
  6,279
  6,493
  6,724
  6,974
  7,241
  7,528
  7,833
  8,158
  8,504
  8,871
  9,260
  9,671
  10,106
  10,566
  11,052
  11,564
  12,104
  12,674
  13,274
  13,906
  14,571
  15,271
  16,008
  16,783
  17,599
Working capital, $m
  -323
  -331
  -339
  -349
  -360
  -371
  -384
  -397
  -412
  -428
  -445
  -463
  -482
  -503
  -524
  -547
  -572
  -597
  -625
  -653
  -683
  -715
  -749
  -785
  -822
  -861
  -903
  -946
  -992
  -1,040
Total debt, $m
  4,509
  4,639
  4,788
  4,955
  5,140
  5,343
  5,564
  5,804
  6,062
  6,339
  6,635
  6,951
  7,287
  7,645
  8,024
  8,426
  8,852
  9,302
  9,777
  10,280
  10,809
  11,368
  11,957
  12,578
  13,231
  13,919
  14,644
  15,406
  16,208
  17,051
Total liabilities, $m
  5,660
  5,790
  5,939
  6,106
  6,291
  6,494
  6,715
  6,955
  7,213
  7,490
  7,786
  8,102
  8,438
  8,796
  9,175
  9,577
  10,003
  10,453
  10,928
  11,431
  11,960
  12,519
  13,108
  13,729
  14,382
  15,070
  15,795
  16,557
  17,359
  18,202
Total equity, $m
  1,748
  1,789
  1,835
  1,886
  1,943
  2,006
  2,074
  2,148
  2,228
  2,314
  2,405
  2,503
  2,607
  2,717
  2,834
  2,958
  3,090
  3,229
  3,376
  3,531
  3,695
  3,867
  4,049
  4,241
  4,443
  4,655
  4,879
  5,114
  5,362
  5,623
Total liabilities and equity, $m
  7,408
  7,579
  7,774
  7,992
  8,234
  8,500
  8,789
  9,103
  9,441
  9,804
  10,191
  10,605
  11,045
  11,513
  12,009
  12,535
  13,093
  13,682
  14,304
  14,962
  15,655
  16,386
  17,157
  17,970
  18,825
  19,725
  20,674
  21,671
  22,721
  23,825
Debt-to-equity ratio
  2.580
  2.590
  2.610
  2.630
  2.650
  2.660
  2.680
  2.700
  2.720
  2.740
  2.760
  2.780
  2.800
  2.810
  2.830
  2.850
  2.860
  2.880
  2.900
  2.910
  2.930
  2.940
  2.950
  2.970
  2.980
  2.990
  3.000
  3.010
  3.020
  3.030
Adjusted equity ratio
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -3,185
  -3,259
  -3,344
  -3,439
  -3,544
  -3,660
  -3,786
  -3,923
  -4,070
  -4,229
  -4,398
  -4,578
  -4,771
  -4,975
  -5,192
  -5,422
  -5,666
  -5,923
  -6,195
  -6,483
  -6,786
  -7,105
  -7,443
  -7,798
  -8,172
  -8,566
  -8,980
  -9,416
  -9,875
  -10,358
Depreciation, amort., depletion, $m
  516
  528
  542
  557
  574
  592
  613
  634
  658
  683
  710
  739
  770
  802
  837
  874
  912
  953
  997
  1,043
  1,091
  1,142
  1,196
  1,252
  1,312
  1,375
  1,441
  1,510
  1,583
  1,660
Funds from operations, $m
  -2,669
  -2,731
  -2,802
  -2,882
  -2,971
  -3,068
  -3,174
  -3,289
  -3,413
  -3,545
  -3,688
  -3,839
  -4,001
  -4,173
  -4,355
  -4,549
  -4,753
  -4,970
  -5,198
  -5,440
  -5,695
  -5,964
  -6,247
  -6,545
  -6,860
  -7,191
  -7,539
  -7,906
  -8,292
  -8,698
Change in working capital, $m
  -6
  -7
  -9
  -10
  -11
  -12
  -13
  -14
  -15
  -16
  -17
  -18
  -19
  -20
  -22
  -23
  -24
  -26
  -27
  -29
  -30
  -32
  -34
  -35
  -37
  -39
  -41
  -44
  -46
  -48
Cash from operations, $m
  -2,663
  -2,724
  -2,794
  -2,872
  -2,960
  -3,056
  -3,161
  -3,275
  -3,398
  -3,530
  -3,671
  -3,821
  -3,982
  -4,153
  -4,334
  -4,526
  -4,729
  -4,944
  -5,171
  -5,411
  -5,665
  -5,932
  -6,213
  -6,510
  -6,823
  -7,152
  -7,498
  -7,863
  -8,246
  -8,650
Maintenance CAPEX, $m
  -506
  -516
  -528
  -542
  -557
  -574
  -592
  -613
  -634
  -658
  -683
  -710
  -739
  -770
  -802
  -837
  -874
  -912
  -953
  -997
  -1,043
  -1,091
  -1,142
  -1,196
  -1,252
  -1,312
  -1,375
  -1,441
  -1,510
  -1,583
New CAPEX, $m
  -109
  -126
  -144
  -162
  -179
  -196
  -214
  -231
  -249
  -268
  -286
  -306
  -325
  -346
  -367
  -389
  -412
  -435
  -460
  -485
  -512
  -540
  -569
  -600
  -632
  -665
  -700
  -737
  -775
  -815
Cash from investing activities, $m
  -615
  -642
  -672
  -704
  -736
  -770
  -806
  -844
  -883
  -926
  -969
  -1,016
  -1,064
  -1,116
  -1,169
  -1,226
  -1,286
  -1,347
  -1,413
  -1,482
  -1,555
  -1,631
  -1,711
  -1,796
  -1,884
  -1,977
  -2,075
  -2,178
  -2,285
  -2,398
Free cash flow, $m
  -3,277
  -3,366
  -3,466
  -3,576
  -3,696
  -3,826
  -3,967
  -4,119
  -4,282
  -4,455
  -4,640
  -4,837
  -5,046
  -5,268
  -5,503
  -5,751
  -6,014
  -6,292
  -6,585
  -6,894
  -7,219
  -7,563
  -7,925
  -8,306
  -8,707
  -9,129
  -9,573
  -10,040
  -10,532
  -11,048
Issuance/(repayment) of debt, $m
  118
  130
  149
  167
  185
  203
  221
  239
  258
  277
  296
  316
  336
  358
  379
  402
  426
  450
  476
  502
  530
  559
  589
  621
  654
  688
  724
  762
  802
  843
Issuance/(repurchase) of shares, $m
  3,220
  3,300
  3,390
  3,491
  3,602
  3,723
  3,855
  3,997
  4,150
  4,314
  4,489
  4,676
  4,875
  5,086
  5,309
  5,546
  5,797
  6,062
  6,342
  6,638
  6,949
  7,278
  7,624
  7,989
  8,374
  8,778
  9,204
  9,652
  10,123
  10,619
Cash from financing (excl. dividends), $m  
  3,338
  3,430
  3,539
  3,658
  3,787
  3,926
  4,076
  4,236
  4,408
  4,591
  4,785
  4,992
  5,211
  5,444
  5,688
  5,948
  6,223
  6,512
  6,818
  7,140
  7,479
  7,837
  8,213
  8,610
  9,028
  9,466
  9,928
  10,414
  10,925
  11,462
Total cash flow (excl. dividends), $m
  61
  64
  73
  82
  91
  100
  108
  117
  126
  136
  145
  155
  165
  175
  186
  197
  209
  221
  233
  246
  260
  274
  289
  304
  321
  337
  355
  374
  393
  414
Retained Cash Flow (-), $m
  -3,220
  -3,300
  -3,390
  -3,491
  -3,602
  -3,723
  -3,855
  -3,997
  -4,150
  -4,314
  -4,489
  -4,676
  -4,875
  -5,086
  -5,309
  -5,546
  -5,797
  -6,062
  -6,342
  -6,638
  -6,949
  -7,278
  -7,624
  -7,989
  -8,374
  -8,778
  -9,204
  -9,652
  -10,123
  -10,619
Prev. year cash balance distribution, $m
  266
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  -2,893
  -3,236
  -3,317
  -3,409
  -3,511
  -3,623
  -3,746
  -3,880
  -4,024
  -4,178
  -4,344
  -4,521
  -4,710
  -4,910
  -5,123
  -5,349
  -5,588
  -5,841
  -6,109
  -6,391
  -6,690
  -7,004
  -7,336
  -7,685
  -8,053
  -8,441
  -8,849
  -9,278
  -9,730
  -10,205
Discount rate, %
  6.90
  7.25
  7.61
  7.99
  8.39
  8.81
  9.25
  9.71
  10.19
  10.70
  11.24
  11.80
  12.39
  13.01
  13.66
  14.34
  15.06
  15.81
  16.61
  17.44
  18.31
  19.22
  20.18
  21.19
  22.25
  23.37
  24.53
  25.76
  27.05
  28.40
PV of cash for distribution, $m
  -2,707
  -2,813
  -2,662
  -2,507
  -2,347
  -2,184
  -2,017
  -1,849
  -1,679
  -1,511
  -1,346
  -1,185
  -1,031
  -886
  -751
  -626
  -515
  -416
  -330
  -257
  -196
  -146
  -107
  -76
  -53
  -36
  -24
  -15
  -9
  -6
Current shareholders' claim on cash, %
  45.7
  20.8
  9.5
  4.3
  2.0
  0.9
  0.4
  0.2
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Southwestern Energy Company is an energy company engaged in natural gas and oil exploration, development and production. The Company operates through two segments: Exploration and Production (E&P) and Midstream Services. Its operations in northeast Pennsylvania are primarily focused on the unconventional natural gas reservoir known as the Marcellus Shale. Through its affiliated midstream subsidiaries, it is engaged in natural gas gathering activities in Arkansas and Louisiana. Its operations are principally focused on the development of unconventional natural gas reservoirs located in Pennsylvania, West Virginia and Arkansas. As of December 31, 2016, its estimated proved natural gas and oil reserves were 5,253 billions of cubic feet equivalent (Bcfe). During the fiscal year ended December 31, 2016, it gathered approximately 600 billion cubic feet (Bcf) of natural gas in the Fayetteville Shale area, including 42 Bcf of natural gas from third-party operated wells.

FINANCIAL RATIOS  of  Southwestern Energy (SWN)

Valuation Ratios
P/E Ratio -1
Price to Sales 1.1
Price to Book 2.9
Price to Tangible Book
Price to Cash Flow 5.3
Price to Free Cash Flow -27.8
Growth Rates
Sales Growth Rate -22.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -67%
Cap. Spend. - 3 Yr. Gr. Rate -23.4%
Financial Strength
Quick Ratio 35
Current Ratio 0
LT Debt to Equity 502.9%
Total Debt to Equity 507.4%
Interest Coverage -35
Management Effectiveness
Return On Assets -33.9%
Ret/ On Assets - 3 Yr. Avg. -21.7%
Return On Total Capital -42.1%
Ret/ On T. Cap. - 3 Yr. Avg. -26.8%
Return On Equity -165.2%
Return On Equity - 3 Yr. Avg. -91.4%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 64.5%
Gross Margin - 3 Yr. Avg. 71%
EBITDA Margin -88.7%
EBITDA Margin - 3 Yr. Avg. -67.5%
Operating Margin -92.2%
Oper. Margin - 3 Yr. Avg. -88.8%
Pre-Tax Margin -109.7%
Pre-Tax Margin - 3 Yr. Avg. -94.4%
Net Profit Margin -108.5%
Net Profit Margin - 3 Yr. Avg. -77%
Effective Tax Rate 1.1%
Eff/ Tax Rate - 3 Yr. Avg. 22.6%
Payout Ratio -1%

SWN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SWN stock intrinsic value calculation we used $3203 million for the last fiscal year's total revenue generated by Southwestern Energy. The default revenue input number comes from 0001 income statement of Southwestern Energy. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our SWN stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 6.9%, whose default value for SWN is calculated based on our internal credit rating of Southwestern Energy, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Southwestern Energy.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of SWN stock the variable cost ratio is equal to 190.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for SWN stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.5% for Southwestern Energy.

Corporate tax rate of 27% is the nominal tax rate for Southwestern Energy. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the SWN stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for SWN are equal to 167.5%.

Life of production assets of 10.6 years is the average useful life of capital assets used in Southwestern Energy operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for SWN is equal to -9.9%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $1979 million for Southwestern Energy - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 586.302 million for Southwestern Energy is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Southwestern Energy at the current share price and the inputted number of shares is $3.1 billion.

RELATED COMPANIES Price Int.Val. Rating
COG Cabot Oil&Gas 23.38 1.43  str.sell
QEP QEP Resources 11.15 4.01  str.sell
KMI Kinder Morgan 17.51 13.81  sell
RRC Range Resource 16.76 4.14  str.sell

COMPANY NEWS

▶ 3 Stock Plays for the Natural Gas Bull Market   [Oct-11-18 10:13AM  Investopedia]
▶ Eni and Newmont Mining skid while Arconic and Kellogg climb   [Oct-08-18 05:32PM  Associated Press]
▶ Company News For Sept 5, 2018   [Sep-05-18 09:57AM  Zacks]
▶ Southwestern Energy to exit Fayetteville Shale in nearly $1.9B deal   [Sep-04-18 01:39PM  American City Business Journals]
▶ Southwestern Energy: 2Q Earnings Snapshot   [04:33PM  Associated Press]
▶ [$$] Side Effect of Rising Oil Drilling: Indigestion for Gas Frackers   [Jun-14-18 08:58PM  The Wall Street Journal]
▶ [$$] Side Effect of Rising Oil Drilling: Indigestion for Gas Frackers   [Jun-13-18 01:18PM  The Wall Street Journal]
▶ Should You Buy Southwestern Energy Company (NYSE:SWN)?   [May-31-18 11:30AM  Simply Wall St.]
▶ Southwestern Energy: 1Q Earnings Snapshot   [Apr-26-18 07:48PM  Associated Press]
▶ If you own nat gas stocks, you should be scared   [Mar-26-18 07:37PM  CNBC Videos]
▶ Four Penny Stocks Billionaires Are Invested In   [Mar-15-18 12:06PM  Insider Monkey]
▶ Southwestern Energy beats Street 4Q forecasts   [Mar-01-18 04:43PM  Associated Press]
▶ Southwestern Energy names new CFO amid other leadership changes   [Feb-28-18 08:55AM  American City Business Journals]

CONTACT US       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.