Authorization for up to $1 billion of share repurchases through the end of 2023
Continued prioritization of debt reduction, consistent with strategic objective of returning to investment grade
Based on current strip prices and market conditions, the Company expects to be able to execute on the full amount of the program while also achieving its target 1.5x to 1.0x leverage ratio range by the end of 2022 and target $3.5 billion to $3.0 billion debt range by the end of 2023
“Southwestern Energy’s disciplined capital allocation strategy prioritizes financial strength through maintenance capital investment, reduction of debt, and now the next complementary step – initiation of a sustainable return of capital program to enhance shareholder value. The increased free cash flow generation capability of our repositioned business, successful Haynesville integration and operational execution, improvement in commodity prices and fundamental outlook provide a clearer line of sight to achieving our target leverage ratio and debt ranges while returning capital to our shareholders,” said Bill Way, Southwestern Energy President and Chief Executive Officer.
“This program is a tangible reflection of our belief that the inherent value of our business is not fully appreciated by the market and further enhances SWN’s value proposition for investors. We expect to complete the execution of this program in a disciplined manner consistent with achieving our balance sheet objectives and returning to investment grade,” continued Way.