SWN Southwestern Energy Company

Risks

• Natural gas, oil and NGL prices greatly affect our revenues and thus profits, liquidity, growth, ability to repay our debt and the value of our assets.
• Significant capital investment is required to replace our reserves and conduct our business.
• Our business depends on access to natural gas, oil and NGL transportation systems and facilities. Our commitments to assure availability of transportation could lead to substantial payments for capacity we do not use if production falls below projected levels.
• A downgrade in our credit rating could negatively impact our cost of and ability to access capital and our liquidity.
• Strategic determinations, including the allocation of capital and other resources to strategic opportunities, are challenging in the face of shifting market conditions, and our failure to appropriately allocate capital and resources among our strategic opportunities may adversely affect our financial condition and reduce our future growth rate.
• Certain of our undeveloped assets are subject to leases that will expire over the next several years unless production is established on units containing the acreage.
• Natural gas and oil drilling and producing and transportation operations can be hazardous and may expose us to liabilities.
• Any significant reduction in the borrowing base under our revolving credit facility may negatively impact our ability to fund our operations, and we may not have sufficient funds to repay borrowings under our revolving credit facility if required as a result of a borrowing base redetermination.
• Our ability to comply with the covenants and other restrictions in our financing agreements may be affected by events beyond our control, including prevailing economic and financial conditions.
• Our business depends on the availability of water and the ability to dispose of water. Limitations or restrictions on our ability to obtain or dispose of water may have an adverse effect on our financial condition, results of operations and cash flows.
• Our producing properties are concentrated in the Appalachian basin, making us vulnerable to risks associated with operating in limited geographic areas.
• Competition in the oil and natural gas industry is intense, making it more difficult for us to market natural gas, oil and NGLs, to secure trained personnel and appropriate services, to obtain additional properties and to raise capital.
• Climate change legislation or regulations governing the emissions of greenhouse gases could result in increased operating costs and reduce demand for the natural gas, oil and NGLs we produce, and concern in financial and investment markets over greenhouse gasses and fossil fuel production could adversely affect our access to capital and the price of our common stock.
• Market views of our industry generally can affect our stock price.
• Volatility in the financial markets or in global economic factors could adversely impact our business and financial condition.
• Our commodity price risk management and measurement systems and economic hedging activities might not be effective and could increase the volatility of our results.
• We may be unable to dispose of assets on attractive terms, and may be required to retain liabilities for certain matters.
• The implementation of derivatives legislation could have an adverse effect on our ability to use derivative instruments to reduce the effect of commodity price, interest rate and other risks associated with our business.
• Further regulations relating to and interpretations of the Tax Cuts and Jobs Act may have a material impact on our financial condition and results of operations.
• Certain U.S. federal income tax deductions currently available with respect to oil and natural gas exploration and production may be eliminated as a result of future legislation.
• We may experience adverse or unforeseen tax consequences due to further developments affecting our deferred tax assets that could significantly affect our results.
• A cyber incident could result in information theft, data corruption, operational disruption and/or financial loss.
• Terrorist activities could materially and adversely affect our business and results of operations.
• Negative public perception regarding us and/or our industry could have an adverse effect on our operations.
• Judicial decisions can affect our rights and obligations.
• Common stockholders will be diluted if additional shares are issued.
• Anti-takeover provisions in our organizational documents and under Delaware law may impede or discourage a takeover, which could cause the market price of our common stock to decline.