-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Pqdy3A/wpxflKGbdOtRMakaJGnZ/piFdtcpOQNP7AVq9IsW09mdcJ6G5pQgkCMGI Q+D1MNHEe7eHGOVDrfzIFg== 0000007332-00-000033.txt : 20001211 0000007332-00-000033.hdr.sgml : 20001211 ACCESSION NUMBER: 0000007332-00-000033 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20001207 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20001208 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHWESTERN ENERGY CO CENTRAL INDEX KEY: 0000007332 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION & DISTRIBUTION [4923] IRS NUMBER: 710205415 STATE OF INCORPORATION: AR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-08246 FILM NUMBER: 785835 BUSINESS ADDRESS: STREET 1: 1083 SAIN ST STREET 2: P O BOX 1408 CITY: FAYETTEVILLE STATE: AR ZIP: 72702-1408 BUSINESS PHONE: 5015211141 FORMER COMPANY: FORMER CONFORMED NAME: ARKANSAS WESTERN GAS CO DATE OF NAME CHANGE: 19790917 8-K 1 0001.txt DATE OF REPORT 12/07/00 =================================================================== SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) December 7, 2000 ---------------- SOUTHWESTERN ENERGY COMPANY (Exact name of registrant as specified in its charter) Arkansas 1 - 8246 71-0205415 (State of incorporation (Commission (I.R.S. Employer or organization) File Number) Identification No.) 1083 Sain Street, P.O. Box 1408, Fayetteville, Arkansas 72702-1408 (Address of principal executive offices, including zip code) (501) 521-1141 (Registrant's telephone number, including area code) No Change (Former name, former address and former fiscal year; if changed since last report) =================================================================== -1- Item 7.(c) Exhibits Reference (99.1) Press release dated December 7, 2000, announcing the Company's hedge position in 2001 p. 3 - 7 Item 9. Regulation FD Disclosures Southwestern Energy Company is furnishing under Item 9 of this Current Report on Form 8-K the information included as exhibit 99.1 to this report. Note: The information in this report (including the exhibit) is furnished pursuant to Item 9 and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. This report will not be deemed an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SOUTHWESTERN ENERGY COMPANY --------------------------- Registrant DATE: December 8, 2000 BY: /s/ GREG D. KERLEY -------------------- --------------------------- Greg D. Kerley Executive Vice President and Chief Financial Officer - 2 - EX-99.1 2 0002.txt PRESS RELEASE DATED 12/07/00 NEWS RELEASE For Further Information Contact: Greg D. Kerley Executive Vice President and Chief Financial Officer (501) 521-1141 SOUTHWESTERN ENERGY INCREASES HEDGE POSITION IN 2001 Higher Commodity Prices Allow Company to Lock In Strong Cash Flow for 2001 Fayetteville, Arkansas - December 7, 2000...Southwestern Energy Company (NYSE: SWN) announced today that it has recently increased its hedged position to approximately 80% of its targeted 2001 gas production. Southwestern uses natural gas and crude oil swap agreements and options to reduce the volatility of earnings and cash flow due to adverse fluctuations in commodity prices. The Company believes that, through the implementation of commodity hedges, it has ensured a strong level of earnings and cash flow and has protected its capital program for 2001. The following tables are attached that outline the Company's recent hedge transactions and the Company's total current hedge position for natural gas and oil in 2001 and 2002. "With our current capital structure, we felt it was prudent to take advantage of the recent increase in prices and secure a large portion of our cash flow for next year. This will allow us to fund our 2001 capital program and reduce our level of debt at the same time," stated Harold M. Korell, President and Chief Executive Officer of Southwestern Energy Company. "As we enter 2001, we expect continued positive comparisons versus our results in 2000, and these recent hedges help ensure a strong level of cash flow to support our E&P strategy in 2001." The Company also announced that it will host a teleconference call related to its capital program, outlook and strategy for 2001 on Monday, December 18, at 11:00 a.m. EST. The dial-in number for the teleconference is 800-530-9601 and the reservation number is 17214726. The teleconference will also be webcast on the Company's website: http://www.swn.com. RealPlayer 8 Basic is required to listen to the teleconference and can be downloaded from the website. Southwestern Energy Company is an integrated natural gas company whose wholly-owned subsidiaries are engaged in gas and oil exploration and production, natural gas gathering, transmission, and marketing, and natural gas distribution. Additional information on the Company can be found on the Internet at http://www.swn.com. -MORE- Summary of Commodity Hedge Transactions Since September 30, 2000: Natural Gas - Zero-Cost Collars
Notional NYMEX NYMEX Term Volumes Floor Price ($/Mcf) Ceiling Price ($/Mcf) ---- ------- ------------------- --------------------- 1Q 2001 1.2 Bcf $4.50 $5.23 1Q 2001 .5 Bcf $6.25 $7.12 2Q 2001 1.2 Bcf $4.50 $5.23 2Q 2001 1.05 Bcf $4.50 $5.45 2Q 2001 .6 Bcf $4.75 $6.00 3Q 2001 1.2 Bcf $4.50 $5.23 3Q 2001 1.05 Bcf $4.50 $5.45 3Q 2001 .6 Bcf $4.75 $6.00 4Q 2001 1.2 Bcf $4.50 $5.03 4Q 2001 1.2 Bcf $4.50 $5.23 4Q 2001 1.05 Bcf $4.50 $5.45 4Q 2001 .6 Bcf $4.75 $6.00 2002 6.0 Bcf $4.00 $4.72
Natural Gas - Fixed Price Swaps
Notional NYMEX Term Volumes Contract Price ($/Mcf) ---- -------- ---------------------- 2Q 2001 .3 Bcf $4.62 3Q 2001 .3 Bcf $4.62 4Q 2001 .1 Bcf $4.62
Crude Oil - Zero-Cost Collars
Monthly Notional NYMEX NYMEX Term Volumes Floor Price ($/Bbl) Ceiling Price ($/Bbl) ---- -------- ------------------- --------------------- 2001 15,000 Bbls $27.00 $29.70 2001 10,000 Bbls $28.00 $30.33
-MORE- Summary of Total Commodity Hedge Contracts Outstanding at December 7, 2000: Natural Gas - Zero-Cost Collars
Notional NYMEX NYMEX Term Volumes Floor Price ($/Mcf) Ceiling Price ($/Mcf) ---- -------- ------------------- --------------------- 1Q 2001 2.1 Bcf $2.55 $3.33 1Q 2001 2.25 Bcf $2.70 $3.50 1Q 2001 1.2 Bcf $4.50 $5.23 1Q 2001 .5 Bcf $6.25 $7.12 2Q 2001 2.1 Bcf $2.50 $3.00 2Q 2001 1.5 Bcf $3.50 $4.82 2Q 2001 1.2 Bcf $4.50 $5.23 2Q 2001 1.05 Bcf $4.50 $5.45 2Q 2001 .6 Bcf $4.75 $6.00 3Q 2001 2.1 Bcf $2.50 $3.00 3Q 2001 1.5 Bcf $3.50 $4.82 3Q 2001 1.2 Bcf $4.50 $5.23 3Q 2001 1.05 Bcf $4.50 $5.45 3Q 2001 .6 Bcf $4.75 $6.00 4Q 2001 .7 Bcf $2.50 $3.00 4Q 2001 1.5 Bcf $3.50 $4.82 4Q 2001 1.2 Bcf $4.50 $5.03 4Q 2001 1.2 Bcf $4.50 $5.23 4Q 2001 1.05 Bcf $4.50 $5.45 4Q 2001 .6 Bcf $4.75 $6.00 2002 6.0 Bcf $4.00 $4.72
Natural Gas - Fixed Price Swaps
Notional NYMEX Term Volumes Contract Price ($/Mcf) ---- -------- ---------------------- 1Q 2001 .3 Bcf $2.70 2Q 2001 .3 Bcf $2.70 2Q 2001 .3 Bcf $4.62 3Q 2001 .3 Bcf $2.70 3Q 2001 .3 Bcf $4.62 4Q 2001 .3 Bcf $2.70 4Q 2001 .1 Bcf $4.62 2002 1.0 Bcf $2.65 2003 .2 Bcf $2.75
-MORE- Summary of Total Commodity Hedge Contracts Outstanding at December 7, 2000 (cont'd): Crude Oil - Zero-Cost Collars
Monthly Notional NYMEX NYMEX Term Volumes Floor Price ($/Bbl) Ceiling Price ($/Bbl) ---- -------- ------------------- --------------------- 2001 15,000 Bbls $27.00 $29.70 2001 10,000 Bbls $28.00 $30.33
Crude Oil - Fixed Price Swaps
Monthly Notional NYMEX Term Volumes Contract Price ($/Bbl) ---- -------- ---------------------- 2001 6,000 Bbls $17.49
Crude Oil - Floor Option
Monthly Notional NYMEX Term Volumes Floor Price ($/Bbl) ---- -------- ------------------- 2001 27,083 Bbls $18.00
All statements, other than historical financial information may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include, but are not limited to, the timing and extent of changes in commodity prices for gas and oil, the timing and extent of the Company's success in discovering, developing, producing, and estimating reserves, property acquisition or divestiture activities that may occur, the effects of weather and regulation on the Company's gas distribution segment, the value that the Company's gas distribution segment may bring in exploring sales opportunities for this segment, increased competition, legal and economic factors, governmental regulation, the financial impact of accounting regulations for derivative instruments, changing market conditions, the comparative cost of alternative fuels, conditions in capital markets and changes in interest rates, availability of oil fieldservices, drilling rigs, and other -MORE- equipment, as well as various other factors beyond the Company's control. A discussion of these and other factors affecting the Company's performance is included in the Company's periodic reports filed with the Securities and Exchange Commission including its Annual Report on Form 10-K for the year ended December 31, 1999. # # # -----END PRIVACY-ENHANCED MESSAGE-----