Financial Statement Restatement

9 Months Ended

Sep. 30, 2012

Accounting Changes and Error Corrections [Abstract]

Accounting Changes and Error Corrections [Text Block]

(1) FINANCIAL STATEMENT RESTATEMENT

In connection with the preparation of our 2012 annual report, management of Southwestern Energy Company (“Company”), and the Audit Committee of the Board of Directors determined that the calculation we had prepared in the third quarter of 2012 to determine whether the Company’s net book value of its United States natural gas and oil properties exceeded the ceiling did not meet the technical requirements of Regulation S-X Rule 4-10 of the Securities and Exchange Commission.  The Company calculated its full cost ceiling value without consideration of the tax benefit of capitalized intangible drilling costs resulting in an overstatement of the non-cash impairment of natural gas and oil properties recorded for those periods.

The Company has restated the Condensed Consolidated Financial Statements for the period ended September 30, 2012 to reflect the change in calculation of the Company’s net book value of its United States natural gas and oil properties.  The principle effect of the restatement is a decrease to our non-cash, after tax, ceiling impairment by $90.9 million in the three and nine months ended September 30, 2012.  

In this Form 10-Q/A, the Company is restating the Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2012. The effect of the restatement on Condensed Consolidated Statements of Operations, Condensed Consolidated Balance Sheets, and Condensed Consolidated Statements of Cash Flows are as follows:

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2012				September 30, 2012
		Previously Reported		As Restated		Previously Reported		As Restated
	(in thousands, except per/share data)				(in thousands, except per/share data)
Consolidated Statements of Income
Depreciation, depletion and amortization	$	200,655	$	203,935	$	602,112	$	605,392
Impairment of natural gas and oil properties	$	441,465	$	289,821	$	1,377,364	$	1,090,473
Deferred Benefit for Income Taxes	$	(85,856)	$	(28,254)	$	(320,731)	$	(210,850)
Net Loss	$	(144,815)	$	(54,053)	$	(525,211)	$	(351,481)
Loss Per Share:
Basic	$	(0.42)	$	(0.16)	$	(1.51)	$	(1.01)
Diluted	$	(0.42)	$	(0.16)	$	(1.51)	$	(1.01)

	At September 30, 2012
		Previously Reported		As Restated
	(in thousands)
Consolidated Balance Sheet
Accumulated depreciation, depletion and amortization	$	(6,414,955)	$	(6,131,344)
Deferred income taxes	$	1,203,703	$	1,313,584
Retained earnings	$	2,131,003	$	2,304,733

	For the Nine Months Ended
	September 30, 2012
		Previously Reported		As Restated
	(in thousands)
Cash Flows From Operating Activities
Net loss	$	(525,211)	$	(351,481)
Impairment of natural gas and oil properties	$	1,377,364	$	1,090,473
Deferred income taxes	$	(320,731)	$	(210,850)