Southwestern Energy Company (NYSE:SWN) reported its operating and financial report for the quarter closed September 30, 2016. Bill Way, the CEO said that during 3Q2016, the company once again closed in on its commitments and posted robust results through focus on value creation in the existing pricing environment.
As businesses ramp up, they are also improving laser focus on increasing margins, recorded this quarter by a decline of lease operating costs per unit for the fifth quarter in row. For FY2017, the commitment and capital rigor to balance sheet strength will continue to be central to offering value-adding growth from vast portfolio.
For 3Q2016, Southwestern posted a net loss attributable to stock of $735 million and adjusted net income of $12 million. This comes against the net loss attributable of $1.8 billion and an adjusted net income of $3 million, in 3Q2015. Net cash offered by operating activities in reported quarter came at $172 million compared to $287 million in 3Q2015. Net cash flow was $173 million for 3Q2016 against $330 million for the comparable period in FY2015.
The operating loss from Southwestern Energy’s E&P division was $777 million for 3Q2016, compared to $2.9 billion in the comparable period, a year ago. The decline in operating loss was mainly following a smaller non-cash impairment in this year.
Adjusted operating income from E&P division was $42 million for 3Q2016 against an adjusted operating loss amounting to $71 million for the comparable period in FY2015. The jump in adjusted operating income was mainly due to higher realized NGL prices and lower operating costs partly offset by lower realized natural gas prices and reduced production.
Net production came at 211 Bcfe in 3Q2016 compared to 249 Bcfe in 3Q2015 as a result of restricted drilling and completion measure. General & administrative costs per unit of production came at $0.23 per Mcfe in 3Q2016 against $0.20 per Mcfe in 3Q2015. This increase was mainly due to the lower volumes in 2016. It excludes the restructuring costs linked with the decline in workforce, which amounted to $2 million for Southwestern Energy segment in 3Q2016.