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SWN
Posted: Fri May 19, 2017 8:36 am
by sansonetx
Anyone here follow SWN? There seems to be a lot of upside in this environment.As per Dan,natural gas prices are on the upswing and this company has been in business a long time.Looking back,their share price has been much higher than what it is trading today.
Re: SWN
Posted: Fri May 19, 2017 9:40 am
by dan_s
A year ago I didn't think SWN was going to make it. They hunkered down, sold some assets to keep the debt holders at bay and now they appear to be OK. There is still risk with SWN because their main asset, the Fayetteville Shale in Northern Arkansas is barely economic at $3.00/mcf gas. Improving NGL market is good news for SWN.
Q1 results were good.
AR, GPOR and RRC are my top picks for gassers. EQT another good one.
Re: SWN
Posted: Sun May 21, 2017 8:00 am
by sansonetx
SWN....recent double bottom @ 6.81...
Hit 6.81 on May 4th and again on May 18th. Bounced up to 7.11 +.27 on Friday on volume of 26 million, well above average.
Trading at about 3 X expected 2017 cash flow with improving fundamentals across the board.
52 week low.......$6.81
52 week high.....$15.59
Re: SWN
Posted: Sun May 21, 2017 2:24 pm
by dan_s
Just a few things I noticed on the balance sheet:
> SWN has a lot of outstanding shares, over 494.5 million shares. That just means it takes a lot of good stuff to reflect on a per share basis.
> They have a lot of debt, but should be able to service the debt if gas and NGL prices remain where they are today.
> Current ratio is over 1, so this year's debts are covered.
I will try to find time to update my forecast model on SWN; probably late this quarter. The "To Do List" is very long these day.
If we have a HOT SUMMER, SWN could have a lot of upside.