Southwestern Energy’s 1Q Net Income Up 74 Percent

Recently moving from Fayetteville to Houston, Texas, must have agreed with Southwestern Energy Co. The integrated energy firm’s first-quarter net income jumped 74 percent compared to the same period of 2000.

In a May 3 SEC filing, Southwestern Energy reported a 2001 first-quarter profit of $16 million or 64 cents per share compared with $9.2 million or 37 cents per share in 2000’s comparable quarter.

The period, which ended March 31, also saw the firm’s revenue soar 64 percent year-over-year, from $24.8 million to $40.7 million.

Southwestern Energy, which officially relocated Feb. 6, had operated in Fayetteville since 1929. But its stock languished in recent years, and until 2001’s first quarter, it hadn’t topped $10 since June 2000. Company Director of Investor Relations Brad Sylvester said successes in Southwestern Energy’s exploration and production division are behind the improvement. Both increased production and oil and gas prices have made all the difference, he said.

New gas wells in the company’s Arkoma Basin and Gulf Coast operating areas and a 4 percent increase in oil production were the biggest factors.

On May 31, 2000, the company completed the sale of its Missouri gas distribution assets for $32 million. The sale resulted in a pretax gain of approximately $3.2 million, and proceeds from the sale were used to pay down debt.