Southwestern Energy (SWN)

[dan_s]

I have updated the SWN forecast model, which will be on the EPG website this afternoon.

This "gasser" has had a tough year, but it can hunker down and survive. Cash flow from operations should be approximately $1 Billion in 2016. It is the 3rd largest natural gas producer in the United States.

I am dropping it from the Sweet 16 because production will decline 5% to 10% in 2016. My valuation is $11.40, compared to First Call's price target of $10.29.

The U.S. natural gas market will be ~5 Bcf per day tighter heading into next winter, so there is "light at the end of the tunnel" for all of the "gassers".