Condensed Consolidating Financial Information (Tables)

3 Months Ended

6 Months Ended

Jun. 30, 2011

Jun. 30, 2011

Dec. 31, 2010

Condensed Consolidating Financial Information

Condensed Consolidating Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Unaudited)
	Parent	Guarantors	Non-Guarantors	Eliminations	Consolidated
	(in thousands)
Three months ended June 30, 2011:
Operating revenues	$                0	$       728,430	$       100,108	$       (63,372)	$       765,166
Operating costs and expenses:
Gas purchases - midstream services	0	200,420	0	(368)	200,052
Operating expenses	0	88,477	28,793	(62,216)	55,054
General and administrative expenses	0	35,298	5,728	(788)	40,238
Depreciation, depletion and amortization	0	161,699	9,921	0	171,620
Taxes, other than income taxes	0	13,568	2,092	0	15,660
Total operating costs and expenses	0	499,462	46,534	(63,372)	482,624
Operating income	0	228,968	53,574	0	282,542
Other income, net	0	16	53	0	69
Equity in earnings of subsidiaries	167,454	0	0	(167,454)	0
Interest expense	0	1,748	4,422	0	6,170
Income (loss) before income taxes	167,454	227,236	49,205	(167,454)	276,441
Provision for income taxes	0	89,651	19,336	0	108,987
Net income (loss)	167,454	137,585	29,869	(167,454)	167,454
Less: Net loss attributable to noncontrolling interest	0	0	0	0	0
Net income (loss) attributable to Southwestern Energy	$       167,454	$       137,585	$         29,869	$     (167,454)	$       167,454
Three months ended June 30, 2010:
Operating revenues	$                0	$       561,762	$         74,701	$       (46,520)	$       589,943
Operating costs and expenses:
Gas purchases - midstream services	0	142,269	0	(477)	141,792
Operating expenses	0	74,980	21,759	(45,796)	50,943
General and administrative expenses	0	32,104	4,776	(247)	36,633
Depreciation, depletion and amortization	0	136,640	7,366	0	144,006
Taxes, other than income taxes	0	8,858	1,394	0	10,252
Total operating costs and expenses	0	394,851	35,295	(46,520)	383,626
Operating income	0	166,911	39,406	0	206,317
Other income (loss), net	0	(93)	9	0	(84)
Equity in earnings of subsidiaries	122,069	0	0	(122,069)	0
Interest expense	0	936	5,244	0	6,180
Income (loss) before income taxes	122,069	165,882	34,171	(122,069)	200,053
Provision for income taxes	0	64,718	13,326	0	78,044
Net income (loss)	122,069	101,164	20,845	(122,069)	122,009
Less: Net loss attributable to noncontrolling interest	0	(60)	0	0	(60)
Net income (loss) attributable to Southwestern Energy	$       122,069	$       101,224	$         20,845	$     (122,069)	$       122,069

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Unaudited)
	Parent	Guarantors	Non-Guarantors	Eliminations	Consolidated
	(in thousands)
Six months ended June 30, 2011:
Operating revenues	$                0	$    1,370,273	$       193,766	$     (122,538)	$    1,441,501
Operating costs and expenses:
Gas purchases - midstream services	0	371,002	0	(720)	370,282
Operating expenses	0	175,329	56,777	(120,254)	111,852
General and administrative expenses	0	67,342	11,577	(1,564)	77,355
Depreciation, depletion and amortization	0	316,100	18,967	0	335,067
Taxes, other than income taxes	0	27,475	4,277	0	31,752
Total operating costs and expenses	0	957,248	91,598	(122,538)	926,308
Operating income	0	413,025	102,168	0	515,193
Other income, net	0	361	82	0	443
Equity in earnings of subsidiaries	304,063	0	0	(304,063)	0
Interest expense	0	5,393	8,213	0	13,606
Income (loss) before income taxes	304,063	407,993	94,037	(304,063)	502,030
Provision for income taxes	0	161,013	36,954	0	197,967
Net income (loss)	304,063	246,980	57,083	(304,063)	304,063
Less: Net loss attributable to noncontrolling interest	0	0	0	0	0
Net income (loss) attributable to Southwestern Energy	$       304,063	$       246,980	$         57,083	$     (304,063)	$       304,063
Six months ended June 30, 2010:
Operating revenues	$                0	$    1,204,589	$       142,023	$       (88,552)	$    1,258,060
Operating costs and expenses:
Gas purchases - midstream services	0	300,285	0	(825)	299,460
Operating expenses	0	133,139	41,604	(87,234)	87,509
General and administrative expenses	0	60,229	9,841	(493)	69,577
Depreciation, depletion and amortization	0	269,015	14,008	0	283,023
Taxes, other than income taxes	0	21,447	2,637	0	24,084
Total operating costs and expenses	0	784,115	68,090	(88,552)	763,653
Operating income	0	420,474	73,933	0	494,407
Other income (loss)	0	(140)	79	0	(61)
Equity in earnings of subsidiaries	293,866	0	0	(293,866)	0
Interest expense	0	3,810	8,878	0	12,688
Income (loss) before income taxes	293,866	416,524	65,134	(293,866)	481,658
Provision for income taxes	0	162,479	25,402	0	187,881
Net income (loss)	293,866	254,045	39,732	(293,866)	293,777
Less: Net loss attributable to noncontrolling interest	0	(89)	0	0	(89)
Net income (loss) attributable to Southwestern Energy	$       293,866	$       254,134	$         39,732	$     (293,866)	$       293,866

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS
(Unaudited)
	Parent	Guarantors	Non- Guarantors	Eliminations	Consolidated
	(in thousands)
June 30, 2011:
ASSETS
Cash and cash equivalents	$         13,180	$                0	$                99	$                0	$         13,279
Restricted cash	85,002	0	0	0	85,002
Accounts receivable	1,485	317,346	17,886	0	336,717
Inventories	43	32,527	808	0	33,378
Other current assets	3,875	210,008	3,883	0	217,766
Total current assets	103,585	559,881	22,676	0	686,142
Intercompany receivables	1,792,206	50	20,204	(1,812,460)	0
Property and equipment	158,583	8,738,206	1,077,035	0	9,973,824
Less: Accumulated depreciation, depletion and amortization	59,499	3,870,668	112,591	0	4,042,758
	99,084	4,867,538	964,444	0	5,931,066
Investments in subsidiaries (equity method)	2,589,149	0	0	(2,589,149)	0
Other assets	26,085	75,935	22,873	0	124,893
Total assets	$    4,610,109	$    5,503,404	$    1,030,197	$  (4,401,609)	$    6,742,101
LIABILITIES AND EQUITY
Accounts and notes payable	$       136,963	$       394,049	$         63,902	$                0	$       594,914
Other current liabilities	3,364	166,879	2,192	0	172,435
Total current liabilities	140,327	560,928	66,094	0	767,349
Intercompany payables	0	1,315,642	496,818	(1,812,460)	0
Long-term debt	1,215,400	0	0	0	1,215,400
Deferred income taxes	(97,937)	1,221,864	200,043	0	1,323,970
Other liabilities	45,888	80,409	2,654	0	128,951
Total liabilities	1,303,678	3,178,843	765,609	(1,812,460)	3,435,670
Commitments and contingencies
Total equity	3,306,431	2,324,561	264,588	(2,589,149)	3,306,431
Total liabilities and equity	$    4,610,109	$    5,503,404	$    1,030,197	$  (4,401,609)	$    6,742,101

CONDENSED CONSOLIDATING BALANCE SHEETS
(Unaudited)
	Parent	Guarantors	Non- Guarantors	Eliminations	Consolidated
	(in thousands)
June 30, 2011:
ASSETS
Cash and cash equivalents	$         13,180	$                0	$                99	$                0	$         13,279
Restricted cash	85,002	0	0	0	85,002
Accounts receivable	1,485	317,346	17,886	0	336,717
Inventories	43	32,527	808	0	33,378
Other current assets	3,875	210,008	3,883	0	217,766
Total current assets	103,585	559,881	22,676	0	686,142
Intercompany receivables	1,792,206	50	20,204	(1,812,460)	0
Property and equipment	158,583	8,738,206	1,077,035	0	9,973,824
Less: Accumulated depreciation, depletion and amortization	59,499	3,870,668	112,591	0	4,042,758
	99,084	4,867,538	964,444	0	5,931,066
Investments in subsidiaries (equity method)	2,589,149	0	0	(2,589,149)	0
Other assets	26,085	75,935	22,873	0	124,893
Total assets	$    4,610,109	$    5,503,404	$    1,030,197	$  (4,401,609)	$    6,742,101
LIABILITIES AND EQUITY
Accounts and notes payable	$       136,963	$       394,049	$         63,902	$                0	$       594,914
Other current liabilities	3,364	166,879	2,192	0	172,435
Total current liabilities	140,327	560,928	66,094	0	767,349
Intercompany payables	0	1,315,642	496,818	(1,812,460)	0
Long-term debt	1,215,400	0	0	0	1,215,400
Deferred income taxes	(97,937)	1,221,864	200,043	0	1,323,970
Other liabilities	45,888	80,409	2,654	0	128,951
Total liabilities	1,303,678	3,178,843	765,609	(1,812,460)	3,435,670
Commitments and contingencies
Total equity	3,306,431	2,324,561	264,588	(2,589,149)	3,306,431
Total liabilities and equity	$    4,610,109	$    5,503,404	$    1,030,197	$  (4,401,609)	$    6,742,101

CONDENSED CONSOLIDATING BALANCE SHEETS
(Unaudited)
	Parent	Guarantors	Non- Guarantors	Eliminations	Consolidated
	(in thousands)
December 31, 2010:
ASSETS
Cash and cash equivalents	$           8,381	$           7,631	$                43	$                0	$         16,055
Accounts receivable	382	331,154	20,037	0	351,573
Inventories	0	34,263	835	0	35,098
Other current assets	5,015	171,060	2,092	0	178,167
Total current assets	13,778	544,108	23,007	0	580,893
Intercompany receivables	1,820,857	131	18,724	(1,839,712)	0
Investments	0	11,103	(11,102)	(1)	0
Property and equipment	124,823	7,871,279	984,783	0	8,980,885
Less: Accumulated depreciation, depletion and amortization	52,256	3,526,010	104,422	0	3,682,688
	72,567	4,345,269	880,361	0	5,298,197
Investments in subsidiaries (equity method)	2,253,871	0	0	(2,253,871)	0
Other assets	18,918	92,747	26,708	0	138,373
Total assets	$    4,179,991	$    4,993,358	$       937,698	$  (4,093,584)	$    6,017,463
LIABILITIES AND EQUITY
Accounts and notes payable	$       175,476	$       336,411	$         33,208	$                0	$       545,095
Other current liabilities	3,288	142,839	2,761	0	148,888
Total current liabilities	178,764	479,250	35,969	0	693,983
Intercompany payable	0	1,317,696	522,017	(1,839,713)	0
Long-term debt	1,093,000	0	0	0	1,093,000
Deferred income taxes	(98,206)	1,066,166	162,332	0	1,130,292
Other liabilities	41,557	89,986	3,769	0	135,312
Total liabilities	1,215,115	2,953,098	724,087	(1,839,713)	3,052,587
Commitments and contingencies
Total equity	2,964,876	2,040,260	213,611	(2,253,871)	2,964,876
Total liabilities and equity	$    4,179,991	$    4,993,358	$       937,698	$  (4,093,584)	$    6,017,463

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
(Unaudited)
	Parent	Guarantors	Non-Guarantors	Eliminations	Consolidated
	(in thousands)
Six months ended June 30, 2011:
Net cash provided by (used in) operating activities	$       (29,781)	$       763,933	$       122,778	$               0	$       856,930
Investing activities:
Capital investments	(35,347)	(889,700)	(99,611)	0	(1,024,658)
Proceeds from sale of property and equipment	0	120,892	241	0	121,133
Transfers to restricted cash	(85,002)	0	0	0	(85,002)
Other	7,244	(11,339)	7,974	0	3,879
Net cash used in investing activities	(113,105)	(780,147)	(91,396)	0	(984,648)
Financing activities:
Intercompany activities	22,870	8,583	(31,453)	0	0
Payments on current portion of long-term debt	(600)	0	0	0	(600)
Payments on revolving long-term debt	(1,717,600)	0	0	0	(1,717,600)
Borrowings under revolving long-term debt	1,840,600	0	0	0	1,840,600
Other items	2,415	0	0	0	2,415
Net cash provided by (used in) financing activities	147,685	8,583	(31,453)	0	124,815
Effect of exchange rate changes on cash	0	0	127	0	127
Increase (decrease) in cash and cash equivalents	4,799	(7,631)	56	0	(2,776)
Cash and cash equivalents at beginning of year	8,381	7,631	43	0	16,055
Cash and cash equivalents at end of period	$         13,180	$                0	$                99	$               0	$         13,279
Six months ended June 30, 2010:
Net cash provided by (used in) operating activities	$       (29,605)	$       701,961	$       136,697	$               0	$       809,053
Investing activities:
Capital investments	(23,175)	(814,494)	(147,641)	0	(985,310)
Proceeds from sale of property and equipment	0	347,150	1,224	0	348,374
Transfers to restricted cash	(355,773)	0	0	0	(355,773)
Other	6,364	(13,016)	4,207	0	(2,445)
Net cash used in investing activities	(372,584)	(480,360)	(142,210)	0	(995,154)
Financing activities:
Intercompany activities	221,780	(227,355)	5,575	0	0
Payments on current portion of long-term debt	(600)	0	0	0	(600)
Payments on revolving long-term debt	(1,297,000)	0	0	0	(1,297,000)
Borrowings under revolving long-term debt	1,478,100	0	0	0	1,478,100
Other items	6,365	0	0	0	6,365
Net cash provided by (used in) financing activities	408,645	(227,355)	5,575	0	186,865
Increase (decrease) in cash and cash equivalents	6,456	(5,754)	62	0	764
Cash and cash equivalents at beginning of year	7,378	5,776	30	0	13,184
Cash and cash equivalents at end of period	$         13,834	$                22	$                92	$               0	$         13,948