Southwestern Energy Reports $800,000 Loss

Southwestern Energy Co. in Fayetteville has announced a net loss of $800,000, or 3 cents per share, for the third quarter, compared with a loss of $1.9 million, or 8 cents per share, for the same period in 1999.

An unusual charge of $2 million related to litigation against the company affected this year’s loss. Without the litigation charge, Southwestern’s net income would have been $500,000 or 2 cents per share.

Operating revenue increased to $5.9 million, more than triple 1999’s third-quarter level of $1.7 million. Drilling fields in the Arkoma and Permian Basins are currently yielding high production rates.

“We are experiencing a record year in reserve replacement and expect continued positive results in the fourth quarter as well,” said Southwestern President and CEO Harold M. Korell. “We expect fourth-quarter production to increase over last year’s level by 5 to 10 percent.”

Southwestern’s utility segment experienced a seasonal loss of $1.7 million in the third quarter, compared with a loss of $1.5 million for the same period in 1999. The company’s marketing group reported operating income of $2.0 million for the first nine months of 2000, up from $1.9 million for the same period a year ago.