SOUTHWESTERN ENERGY ANNOUNCES THIRD QUARTER 2009 RESULTSSOUTHWESTERN RESULTS
AND UPDATES FOURTH QUARTER PRODUCTION GUIDANCE
Houston, Texas – October 29, 2009...Southwestern Energy Company (NYSE: SWN) today announced its financial and operating results for the third quarter of 2009. Highlights include:
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Natural gas and crude oil production of 73.2 Bcfe, up 38% over the same period in 2008
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Net cash provided by operating activities before changes in operating assets and liabilities of $331.8 million (a non-GAAP measure reconciled below), up from $312.1 million in the same period in 2008
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Net earnings of $118.3 million, compared to $218.2 million in the same period in 2008
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Revised fourth quarter 2009 production guidance range to 86-89 Bcfe, up 12% from midpoints of previous guidance
For the third quarter of 2009, Southwestern reported net income of $118.3 million, or $0.34 per diluted share, compared to $218.2 million, or $0.63 per diluted share, for the same period in 2008. Net income for the third quarter of 2009 declined due to significantly lower natural gas prices, which were only partially offset by higher production volumes. Results for the third quarter of 2008 also included an after-tax gain on the sale of the company’s utility assets of $35.4 million, or $0.10 per diluted share. Net cash provided by operating activities before changes in operating assets and liabilities (a non-GAAP measure reconciled below) was $331.8 million in the third quarter of 2009, up from $312.1 million for the same period in 2008.
“We had a solid quarter despite depressed natural gas prices which were at a seven-year low and the various curtailment issues we experienced related to maintenance and repairs of the Boardwalk Pipeline,” remarked Harold M. Korell, Executive Chairman of Southwestern Energy. “We do not expect these factors to weigh as heavily in the fourth quarter of 2009, as the Boardwalk Pipeline was placed on-line sooner than we had expected and as gas prices appear to be moving higher than they have been over the past nine months. As a result of the Boardwalk Pipeline being back on-line, we were able to reach another milestone last week when we surpassed 1 Bcfe of net production per day as a company. As we look ahead, we see continued profitable growth in our production and reserves which, coupled with our low cost structure, will create tremendous value for Southwestern Energy and its shareholders.”

Third Quarter 2009 Financial Results
E&P Segment - Operating income from the company’s E&P segment was $172.0 million for the third quarter of 2009, down from $280.6 million for the same period in 2008. The decrease was primarily due to a 41% decrease in realized natural gas prices and a 12% increase in operating costs and expenses, which were partially offset by a 38% increase in production volumes.
Gas and oil production totaled 73.2 Bcfe in the third quarter of 2009, up from 52.8 Bcfe in the third quarter of 2008, and included 58.8 Bcf from the company’s Fayetteville Shale play, up from 37.2 Bcf in the third quarter of 2008. Beginning on October 8, 2009, the Fayetteville Lateral of the Texas Gas Transmission Pipeline (Boardwalk Pipeline) was placed back into service after being shut down since September 1, 2009 due to maintenance and pipeline inspection. The Greenville Lateral of the Boardwalk Pipeline was also placed back into service in October after this shut down.


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