Debt

9 Months Ended

Sep. 30, 2011

Debt [Abstract]

Debt

(9)   DEBT

The components of debt as of September 30, 2011 and December 31, 2010 consisted of the following:

	September 30,		December 31,
	2011		2010
	(in thousands)
Short-term debt:
7.15% Senior Notes due 2018	$                1,200	$                1,200
Total short-term debt	1,200	1,200
Long-term debt:
Variable rate (2.205% at September 30, 2011 and 0.887% at December 31, 2010) unsecured revolving credit facility	599,800	421,200
7.5% Senior Notes due 2018	600,000	600,000
7.35% Senior Notes due 2017	15,000	15,000
7.125% Senior Notes due 2017	25,000	25,000
7.15% Senior Notes due 2018	31,200	31,800
	1,271,000	1,093,000
Total debt	$        1,272,200	$        1,094,200

Senior Notes and Subsidiary Guarantees 

The indentures governing the Company's senior notes contain covenants that, among other things, restrict the ability of the Company and/or its subsidiaries' ability to incur liens, to engage in sale and leaseback transactions and to merge, consolidate or sell assets. All of the Company's senior notes are currently guaranteed by its subsidiaries, SEECO, Inc. ("SEECO"), Southwestern Energy Production Company ("SEPCO") and Southwestern Energy Services Company ("SES"). These guarantees may be unconditionally released in certain circumstances. Please refer to Note 16, "Condensed Consolidating Financial Information" for additional information.

Credit Facility 

In February 2011, the Company amended and restated its unsecured revolving credit facility, increasing the borrowing capacity to $1.5 billion and extending the maturity date to February 2016 ("Credit Facility").  The amount available under the Credit Facility may be increased to $2.0 billion at any time upon the Company's agreement with its existing or additional lenders. The interest rate on the amended credit facility is calculated based upon our debt rating and is currently 200 basis points over the current London Interbank Offered Rate (LIBOR) and was 200 basis points over LIBOR at September 30, 2011. The Credit Facility is guaranteed by the Company's subsidiary, SEECO.  The Credit Facility requires additional subsidiary guarantors if certain guaranty coverage levels are not satisfied.  The revolving credit facility contains covenants which impose certain restrictions on the Company. Under the credit agreement, the Company may not issue total debt in excess of 60% of its total capital and must maintain a ratio of earnings before interest, taxes, depreciation and amortization (EBITDA) to interest expense of 3.5 or above. The terms of the Credit Facility also include covenants that restrict the ability of the Company and its material subsidiaries to merge, consolidate or sell all or substantially all of their assets, restrict the ability of the Company and its subsidiaries to incur liens and restrict the ability of the Company's subsidiaries to incur indebtedness.  At September 30, 2011, the Company's capital structure consisted of 26% debt and 74% equity and it was in compliance with the covenants of its debt agreements.  While the Company believes all of the lenders under the Credit Facility have the ability to provide funds, it cannot predict whether each will be able to meet its obligation under the facility.