KeyBanc Reaffirms a 'Buy' Rating on Southwestern Energy (SWN); A Best-in-Class E&P Company

June 8, 2009 8:39 AM EDT

KeyBanc reaffirms a 'Buy' rating on Southwestern Energy (NYSE: SWN), raises price target from $45 to $55.

KeyBanc analyst says, "KeyBanc Capital hosted two days of management meetings for Southwestern Energy last week. We came away from the meetings further impressed with the Company's prospects for future production growth and proved reserve adds at strong rates of return for the next 3-5 years and beyond. While clearly SWN has done a superb job in delineating and developing its position in the Fayetteville Shale play, we came away from our meetings emboldened with the belief that there is still tremendous growth to come, given that SWN has not even scratched the surface of the efficiencies to come from the play, which will benefit both production and reserve growth, as well as drilling/completion costs. SWN strikes us as one of the best E&P stories that has broken itself away from the pack, one that longer-term investors should look to own given superior execution, strong rates of return and growth to come in production, reserves, earnings and cash flow."

"We are presently modeling 27% production growth in 2010 (average of 1.0 Bcfe/d), which we believe is on the conservative side and more than likely will need to be revised higher."

To see more analyst ratings on SWN Click Here.

Southwestern Energy Company (Southwestern) is an independent energy company primarily focused on the exploration and production of natural gas within the United States.

Related Categories

Analyst Comments

Stocks Mentioned

Related Entities

• KeyBanc

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?