Southwestern Energy Co. announced it closed its divestiture of non-core Pennsylvania Utica assets in its second quarter 2023 results on Aug. 3. The $123 million in net proceeds will be allocated towards debt reduction.
“With our successes mitigating inflationary pressures and driving operational efficiencies, we expect to deliver our 2023 plan with less activity and corresponding investment. Debt reduction remains our top capital allocation priority, which we accelerated with a non-core asset sale," Bill Way, Southwestern Energy president and CEO, said in the company’s earnings press release.
At the end of the second quarter ending June 30, Southwestern Energy had a total debt of $4.05 billion. The company reported $310 million of borrowings under its revolving credit facility and $25 million in outstanding letters of credit.
The company's second quarter earnings reported a net income of $231 million, or $0.21 per diluted share, including a gain on mark-to-market of unsettled derivatives. Excluding this and other one-time items, adjusted net income (non-GAAP) was $95 million, or $0.09 per diluted share, and adjusted EBITDA (non-GAAP) was $484 million.
Net cash from operating activities was $425 million, net cash flow (non-GAAP) was $453 million and total capital investments were $595 million, according to the press release.
In the second quarter, total net production was 423 Bcfe, with 86% natural gas, 12% NGLs and 2% oil. Capital investments totaled $595 million with 50 wells turned to sales, including 28 wells in the Appalachian Basin and 22 wells in the Haynesville Shale. Thirty-eight wells were drilled and 46 wells were completed.
Southwestern Energy reduced full-year capital investment guidance by 10% to $200 million due to activity reductions, inflation moderation and operational efficiencies.