Basis of Presentation

9 Months Ended

Sep. 30, 2018

Basis of Presentation [Abstract]

Basis of Presentation

(1) BASIS OF PRESENTATION

Southwestern Energy Company (including its subsidiaries, collectively “Southwestern” or the “Company”) is an independent energy company engaged in natural gas, oil and NGL exploration, development and production (“E&P”).  The Company is also focused on creating and capturing additional value through its marketing business.  Southwestern conducts most of its business through subsidiaries and operates principally in two segments: E&P and Midstream.

In September 2018, the Company announced that it had signed a Membership Interest Purchase Agreement (“MIPA”) to sell 100% of the equity in certain of its subsidiaries that owned and operated its Fayetteville Shale E&P and related midstream gathering assets for $1.865 billion in cash, subject to customary closing adjustments (“Fayetteville Shale sale”).  In accordance with the requirements of Rule 4-10 under the SEC’s Regulation S-X, the Company’s oil and gas properties included in the full cost pool are not presented as held for sale.  The Company has classified the remainder of the Fayetteville Shale-related assets as held for sale on the consolidated balance sheets beginning in the third quarter of 2018.  The Fayetteville Shale sale is discussed in further detail in Note 2.

The accompanying consolidated financial statements were prepared using accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission.  Certain information relating to the Company’s organization and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been appropriately condensed or omitted in this Quarterly Report.  The Company believes the disclosures made are adequate to make the information presented not misleading.

The consolidated financial statements contained in this report include all normal and recurring material adjustments that, in the opinion of management, are necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented herein.  It is recommended that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (“2017 Annual Report”).

The Company’s significant accounting policies, which have been reviewed and approved by the Audit Committee of the Company’s Board of Directors, are summarized in Note 1 in the Notes to the Consolidated Financial Statements included in the Company’s 2017 Annual Report.

Certain reclassifications have been made to the prior year financial statements to conform to the 2018 presentation.  The effects of the reclassifications were not material to the Company’s consolidated financial statements.