Condensed Consolidating Financial Information (Tables)

3 Months Ended

9 Months Ended

Sep. 30, 2011

Sep. 30, 2011

Dec. 31, 2010

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Unaudited)
	Parent	Guarantors	Non-Guarantors	Eliminations	Consolidated
	(in thousands)
Three months ended September 30, 2011:
Operating revenues	$               -	$      730,826	$      105,486	$      (69,057)	$      767,255
Operating costs and expenses:
Gas purchases – midstream services	-	175,729	-	(493)	175,236
Operating expenses	-	101,645	30,034	(67,768)	63,911
General and administrative expenses	-	34,030	2,366	(796)	35,600
Depreciation, depletion and amortization	-	169,446	9,667	-	179,113
Taxes, other than income taxes	-	13,731	3,946	-	17,677
Total operating costs and expenses	-	494,581	46,013	(69,057)	471,537
Operating income	-	236,245	59,473	-	295,718
Other loss, net	-	(16)	(106)	-	(122)
Equity in earnings of subsidiaries	175,173	-	-	(175,173)	-
Interest expense	-	2,376	3,281	-	5,657
Income (loss) before income taxes	175,173	233,853	56,086	(175,173)	289,939
Provision for income taxes	-	92,725	22,041	-	114,766
Net income (loss)	175,173	141,128	34,045	(175,173)	175,173
Less: Net loss attributable to noncontrolling interest	-	-	-	-	-
Net income (loss) attributable to Southwestern Energy	$       175,173	$       141,128	$         34,045	$     (175,173)	$       175,173
Three months ended September 30, 2010:
Operating revenues	$                -	$       648,605	$         85,602	$       (52,035)	$       682,172
Operating costs and expenses:
Gas purchases – midstream services	-	158,503	-	(408)	158,095
Operating expenses	-	78,113	26,197	(51,381)	52,929
General and administrative expenses	-	31,041	4,363	(246)	35,158
Depreciation, depletion and amortization	-	143,202	8,082	-	151,284
Taxes, other than income taxes	-	13,014	1,556	-	14,570
Total operating costs and expenses	-	423,873	40,198	(52,035)	412,036
Operating income	-	224,732	45,404	-	270,136
Other income, net	-	214	112	-	326
Equity in earnings of subsidiaries	160,741	-	-	(160,741)	-
Interest expense	-	1,716	4,873	-	6,589
Income (loss) before income taxes	160,741	223,230	40,643	(160,741)	263,873
Provision for income taxes	-	87,387	15,848	-	103,235
Net income (loss)	160,741	135,843	24,795	(160,741)	160,638
Less: Net loss attributable to noncontrolling interest	-	(103)	-	-	(103)
Net income (loss) attributable to Southwestern Energy	$       160,741	$       135,946	$         24,795	$     (160,741)	$       160,741

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Unaudited)
	Parent	Guarantors	Non-Guarantors	Eliminations	Consolidated
	(in thousands)
Nine months ended September 30, 2011:
Operating revenues	$                -	$    2,101,099	$       299,252	$     (191,595)	$    2,208,756
Operating costs and expenses:
Gas purchases – midstream services	-	546,731	-	(1,213)	545,518
Operating expenses	-	276,974	86,811	(188,022)	175,763
General and administrative expenses	-	101,372	13,943	(2,360)	112,955
Depreciation, depletion and amortization	-	485,546	28,634	-	514,180
Taxes, other than income taxes	-	41,206	8,223	-	49,429
Total operating costs and expenses	-	1,451,829	137,611	(191,595)	1,397,845
Operating income	-	649,270	161,641	-	810,911
Other income (loss), net	-	345	(24)	-	321
Equity in earnings of subsidiaries	479,236	-	-	(479,236)	-
Interest expense	-	7,769	11,494	-	19,263
Income (loss) before income taxes	479,236	641,846	150,123	(479,236)	791,969
Provision for income taxes	-	253,738	58,995	-	312,733
Net income (loss)	479,236	388,108	91,128	(479,236)	479,236
Less: Net loss attributable to noncontrolling interest	-	-	-	-	-
Net income (loss) attributable to Southwestern Energy	$       479,236	$       388,108	$         91,128	$     (479,236)	$       479,236
Nine months ended September 30, 2010:
Operating revenues	$                -	$    1,853,194	$       227,625	$     (140,587)	$    1,940,232
Operating costs and expenses:
Gas purchases – midstream services	-	458,788	-	(1,233)	457,555
Operating expenses	-	211,252	67,801	(138,615)	140,438
General and administrative expenses	-	91,270	14,204	(739)	104,735
Depreciation, depletion and amortization	-	412,217	22,090	-	434,307
Taxes, other than income taxes	-	34,461	4,193	-	38,654
Total operating costs and expenses	-	1,207,988	108,288	(140,587)	1,175,689
Operating income	-	645,206	119,337	-	764,543
Other income, net	-	74	191	-	265
Equity in earnings of subsidiaries	454,607	-	-	(454,607)	-
Interest expense	-	5,526	13,751	-	19,277
Income (loss) before income taxes	454,607	639,754	105,777	(454,607)	745,531
Provision for income taxes	-	249,866	41,250	-	291,116
Net income (loss)	454,607	389,888	64,527	(454,607)	454,415
Less: Net loss attributable to noncontrolling interest	-	(192)	-	-	(192)
Net income (loss) attributable to Southwestern Energy	$       454,607	$       390,080	$         64,527	$     (454,607)	$       454,607

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS
(Unaudited)
	Parent	Guarantors	Non- Guarantors	Eliminations	Consolidated
	(in thousands)
September 30, 2011:
ASSETS
Cash and cash equivalents	$         11,842	$           1,451	$                -	$                -	$         13,293
Restricted cash	69,261	-	-	-	69,261
Accounts receivable	273	322,217	24,406	-	346,896
Inventories	-	45,629	903	-	46,532
Other current assets	4,557	352,209	3,372	-	360,138
Total current assets	85,933	721,506	28,681	-	836,120
Intercompany receivables	1,853,309	34	24,961	(1,878,304)	-
Property and equipment	175,968	9,147,370	1,121,055	-	10,444,393
Less: Accumulated depreciation, depletion and amortization	63,301	4,042,935	123,885	-	4,230,121
	112,667	5,104,435	997,170	-	6,214,272
Investments in subsidiaries (equity method)	2,902,323	-	-	(2,902,323)	-
Other assets	23,995	117,782	21,938	-	163,715
Total assets	$    4,978,227	$    5,943,757	$    1,072,750	$  (4,780,627)	$    7,214,107
LIABILITIES AND EQUITY
Accounts and notes payable	$       148,433	$       334,144	$         45,285	$                -	$       527,862
Other current liabilities	3,531	232,632	2,225	-	238,388
Total current liabilities	151,964	566,776	47,510	-	766,250
Intercompany payable	-	1,394,690	483,614	(1,878,304)	-
Long-term debt	1,271,000	-	-	-	1,271,000
Deferred income taxes	(101,174)	1,339,822	222,557	-	1,461,205
Other liabilities	47,884	53,234	5,981	-	107,099
Total liabilities	1,369,674	3,354,522	759,662	(1,878,304)	3,605,554
Commitments and contingencies
Total equity	3,608,553	2,589,235	313,088	(2,902,323)	3,608,553
Total liabilities and equity	$    4,978,227	$    5,943,757	$    1,072,750	$  (4,780,627)	$    7,214,107

CONDENSED CONSOLIDATING BALANCE SHEETS
(Unaudited)
	Parent	Guarantors	Non- Guarantors	Eliminations	Consolidated
	(in thousands)
September 30, 2011:
ASSETS
Cash and cash equivalents	$         11,842	$           1,451	$                -	$                -	$         13,293
Restricted cash	69,261	-	-	-	69,261
Accounts receivable	273	322,217	24,406	-	346,896
Inventories	-	45,629	903	-	46,532
Other current assets	4,557	352,209	3,372	-	360,138
Total current assets	85,933	721,506	28,681	-	836,120
Intercompany receivables	1,853,309	34	24,961	(1,878,304)	-
Property and equipment	175,968	9,147,370	1,121,055	-	10,444,393
Less: Accumulated depreciation, depletion and amortization	63,301	4,042,935	123,885	-	4,230,121
	112,667	5,104,435	997,170	-	6,214,272
Investments in subsidiaries (equity method)	2,902,323	-	-	(2,902,323)	-
Other assets	23,995	117,782	21,938	-	163,715
Total assets	$    4,978,227	$    5,943,757	$    1,072,750	$  (4,780,627)	$    7,214,107
LIABILITIES AND EQUITY
Accounts and notes payable	$       148,433	$       334,144	$         45,285	$                -	$       527,862
Other current liabilities	3,531	232,632	2,225	-	238,388
Total current liabilities	151,964	566,776	47,510	-	766,250
Intercompany payable	-	1,394,690	483,614	(1,878,304)	-
Long-term debt	1,271,000	-	-	-	1,271,000
Deferred income taxes	(101,174)	1,339,822	222,557	-	1,461,205
Other liabilities	47,884	53,234	5,981	-	107,099
Total liabilities	1,369,674	3,354,522	759,662	(1,878,304)	3,605,554
Commitments and contingencies
Total equity	3,608,553	2,589,235	313,088	(2,902,323)	3,608,553
Total liabilities and equity	$    4,978,227	$    5,943,757	$    1,072,750	$  (4,780,627)	$    7,214,107

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	$                -	$         16,055
Accounts receivable	382	331,154	20,037	-	351,573
Inventories	-	34,263	835	-	35,098
Other current assets	5,015	171,060	2,092	-	178,167
Total current assets	13,778	544,108	23,007	-	580,893
Intercompany receivables	1,820,857	131	18,724	(1,839,712)	-
Investments	-	11,103	(11,102)	(1)	-
Property and equipment	124,823	7,871,279	984,783	-	8,980,885
Less: Accumulated depreciation, depletion and amortization	52,256	3,526,010	104,422	-	3,682,688
	72,567	4,345,269	880,361	-	5,298,197
Investments in subsidiaries (equity method)	2,253,871	-	-	(2,253,871)	-
Other assets	18,918	92,747	26,708	-	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	$                -	$       545,095
Other current liabilities	3,288	142,839	2,761	-	148,888
Total current liabilities	178,764	479,250	35,969	-	693,983
Intercompany payable	-	1,317,696	522,017	(1,839,713)	-
Long-term debt	1,093,000	-	-	-	1,093,000
Deferred income taxes	(98,206)	1,066,166	162,332	-	1,130,292
Other liabilities	41,557	89,986	3,769	-	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)
Nine months ended September 30, 2011:
Net cash provided by (used in) operating activities	$       (23,901)	$    1,146,062	$       178,050	$                -	$    1,300,211
Investing activities:
Capital investments	(53,085)	(1,333,977)	(156,487)	-	(1,543,549)
Proceeds from sale of property and equipment	-	121,281	265	-	121,546
Transfers to restricted cash	(85,040)	-	-	-	(85,040)
Transfers from  restricted cash	15,779	-	-	-	15,779
Other	11,046	(31,564)	25,458	-	4,940
Net cash used in investing activities	(111,300)	(1,244,260)	(130,764)	-	(1,486,324)
Financing activities:
Intercompany activities	(44,592)	92,018	(47,426)	-	-
Payments on current portion of long-term debt	(600)	-	-	-	(600)
Payments on revolving long-term debt	(2,575,000)	-	-	-	(2,575,000)
Borrowings under revolving long-term debt	2,753,600	-	-	-	2,753,600
Other items	5,254	-	-	-	5,254
Net cash provided by (used in) financing activities	138,662	92,018	(47,426)	-	183,254
Effect of exchange rate changes on cash	-	-	97	-	97
Increase (decrease) in cash and cash equivalents	3,461	(6,180)	(43)	-	(2,762)
Cash and cash equivalents at beginning of year	8,381	7,631	43	-	16,055
Cash and cash equivalents at end of period	$         11,842	$           1,451	$                -	$                -	$         13,293
Nine months ended September 30, 2010:
Net cash provided by (used in) operating activities	$       (46,565)	$    1,082,585	$       179,042	$                -	$    1,215,062
Investing activities:
Capital investments	(33,915)	(1,231,500)	(240,664)	-	(1,506,079)
Proceeds from sale of property and equipment	-	347,150	1,229	-	348,379
Transfers to restricted cash	(355,865)	-	-	-	(355,865)
Transfers from restricted cash	1,689	-	-	-	1,689
Other	9,437	(18,440)	6,371	-	(2,632)
Net cash used in investing activities	(378,654)	(902,790)	(233,064)	-	(1,514,508)
Financing activities:
Intercompany activities	130,114	(184,121)	54,007	-	-
Payments on current portion of long-term debt	(600)	-	-	-	(600)
Payments on revolving long-term debt	(2,043,600)	-	-	-	(2,043,600)
Borrowings under revolving long-term debt	2,336,100	-	-	-	2,336,100
Other items	8,559	-	-	-	8,559
Net cash provided by (used in) financing activities	430,573	(184,121)	54,007	-	300,459
Increase (decrease) in cash and cash equivalents	5,354	(4,326)	(15)	-	1,013
Cash and cash equivalents at beginning of year	7,378	5,776	30	-	13,184
Cash and cash equivalents at end of period	$         12,732	$           1,450	$                15	$                -	$         14,197