About Southwestern Energy

Southwestern Energy Company operates as an independent energy company. The company engages in development, exploration and production activities, including the related marketing of natural gas, associated NGLs and oil produced in its operations. The company is a holding company whose assets consist of direct and indirect ownership interests in, and whose business is conducted substantially through, its subsidiaries. The company operates exclusively in the United States. Business Strategy As it continues to develop its core positions in the Appalachian and Haynesville natural gas basins in the U.S., the company will concentrate on creating sustainable value. During 2023 the company executed on this strategy by using securing outlook upgrade from S&P, resulting in consensus Positive Outlook from credit agencies. The bulk of the company's operations, which it refers to as Exploration and Production (E&P), are focused on the development of natural gas and associated NGL and oil reserves. The company focuses on creating and capturing additional value through its marketing business, which it refers to as Marketing. Exploration and Production The company's primary business is the development, exploration and production of natural gas as well as associated NGLs and oil in its core positions in the Appalachia and Haynesville natural gas basins in the U.S. The company focuses on the development of unconventional natural gas reservoirs located in Louisiana, West Virginia, Pennsylvania, and Ohio. The company's operations in West Virginia, Pennsylvania and Ohio (Appalachia) are primarily focused on the Marcellus Shale, the Utica and the Upper Devonian unconventional natural gas and liquids reservoirs. The company's operations in Louisiana (herein referred to as "Haynesville") are primarily focused on the Haynesville and Bossier natural gas reservoirs. Oilfield Services Vertical Integration The company provides certain oilfield services that are strategic and economically beneficial for its E&P operations when its E&P activity levels and market pricing support these activities. The company's vertically integrated operations only perform services on its operated wells. As of December 31, 2023, the company operated a fleet of drilling rigs and leased two pressure pumping spreads with associated pump down horsepower capacity of 102,000 horsepower. Operations Appalachia In 2023, the company's production decreased by 20 Bcfe. As of December 31, 2023, the company had approximately 718,560 net acres in Appalachia. Haynesville In 2023, the company's production decreased by 44 Bcfe as a result of lower activity in 2023. As of December 31, 2023, the company had approximately 281,361 net acres in Haynesville. Other New Brunswick, Canada: The company holds exclusive licenses to search and conduct an exploration program covering 2,518,519 net acres in New Brunswick. In 2015, the provincial government in New Brunswick imposed a moratorium on hydraulic fracturing until it is satisfied with a list of conditions. In May 2016, the provincial government announced that the moratorium would continue indefinitely. In 2021, the company was granted a further extension of the licenses through March 2026. Delivery Commitments As of December 31, 2023, the company had natural gas delivery commitments of 1,342 Bcf in 2024 and 872 Bcf in 2025 under existing agreements. These amounts are well below the company's expected 2024 natural gas production from Appalachia and Haynesville and expected 2025 production from its available reserves. Customers: The company's E&P production is marketed primarily by its Marketing segment. The company's customers include LNG exporters, major energy companies, utilities and industrial purchasers of natural gas. For the year ended December 31, 2023, one purchaser accounted for 14% of the company's revenues. For the year ended December 31, 2022, one purchaser accounted for 17% of the company's revenues. Marketing The company engages in marketing activities which primarily support its E&P operations and generate revenue through the marketing of natural gas, oil and NGLs. The company attempts to capture opportunities related to the marketing and transportation of natural gas, oil and NGLs primarily involving the marketing of its own equity production and that of royalty owners in its wells. Additionally, the company manages portfolio and locational, or basis, risk, acquire transportation rights on third-party pipelines and, in limited circumstances, purchase third-party natural gas to fulfill commitments specific to a geographic location. Appalachia: The company's transportation portfolio for all products in Appalachia is highly diversified, allows it to capitalize on strengthening markets, including city-gate markets, and provides production flow assurance. Agreements with Rover Pipeline LLC and Mountaineer Xpress / Gulf Xpress pipelines allow it to access growing high-demand markets in the U.S. Gulf Coast region while transportation on other northeast pipelines allows it to capture in-basin pricing, and its agreements with Rover Pipeline LLC and Rockies Express Pipeline LLC provide access to Midwest markets. In addition to its natural gas transportation, the company has ethane take-away capacity that provides direct access to Mont Belvieu pricing. Certain of the company's capacity agreements contain multiple extension and reduction options that allow it to right-size its transportation portfolio as needed for its production or to capture future market opportunities. Haynesville: The company's transportation portfolio for Haynesville allows for access to the U.S. Gulf Coast and LNG corridor markets. Agreements with ETC Tiger, Gulf South and Enable Line CP provide transport to the Southeast Supply Header (SESH) and Perryville Hub, a central trading location with high demand and amply liquidity, while Acadian, Midcoast and LEAP pipelines deliver to the growing LNG corridor, with direct access to LNG shippers at sales prices close to Henry Hub pricing. Customers The company's marketing customers include LNG exporters, major energy companies, utilities and industrial purchasers of natural gas. For the year ended December 31, 2023, one purchaser accounted for 14% of the company's revenues. Environmental Regulation The company is subject to significant existing environmental and worker health and safety laws and regulations, which include the Comprehensive Environmental Response, Compensation, and Liability Act, as amended; the Resource Conservation and Recovery Act, as amended; the Clean Water Act, as amended; the Oil Pollution Act, as amended; the Clean Air Act, as amended; and the Endangered Species Act and comparable state laws. The company's operations are subject to a number of federal and state laws and regulations, including the federal Occupational Safety and Health Act (OSHA) and comparable state statutes, whose purpose is to protect the health and safety of workers. In addition, the OSHA hazard communication standard, the U.S. Environmental Protection Agency community right-to-know regulations under Title III of the federal Superfund Amendments and Reauthorization Act and comparable state statutes require that information be maintained concerning hazardous materials used or produced in operations and that this information be provided to employees, state and local government authorities and citizens. History Southwestern Energy Company was founded in 1929. The company was incorporated in 1929.