- Southwestern Energy owns a substantial quantity of leases in the very rich Marcellus and Haynesville shales.
- The company has been working very hard to reduce its expenses, which has allowed it to generate positive free cash flow.
- Natural gas has very strong fundamentals as an increasing fear of global warming is causing governments to prefer it over coal for electric generation.
- The company's negative shareholder equity is worrying but its positive free cash flow helps to offset that concern.
- The company does not appear to be the cheapest of its peers but it is still a much better value than a few other companies.
For further details see:
Southwestern Energy: An Underfollowed Shale Driller With Positive FCF