Southwestern Energy - on Sept 11, co entered into amendment no. 1 to $1,191 million secured term loan facility and $743 million unsecured revolving facility
DVS was forced out. Sad. He had a long history with this company and really cared about his people. The culture at SWN has completely changed for the worse. I know a lot of people are trying to find jobs elsewhere
Someone posted that's about $30million more a year in interest ... I think that's about one rig year -- plus minus .... so one less rig running in 2018--- with best locations drilled , lower quality locations drilled in 18- less production ...
So 2019- less cash , more debt - drop another rig
All in all the classic death spiral with routine layoffs every year to 18 months .
We know the college recruiting is just show, so that pipeline ends
Anyone who can leaves
A morass of zombies left ....
Debt deal done at higher interest rate..now what next??
Well the main point of the website is to look at layoffs, any hr movement may be indicative, but I think this is just normal movement to concho.
More disconcerting is the total shift in culture, that is almost complete ... i think we see more layoffs, but probably early next year
Regarding the HR person that went to Concho. Wasn't anyone that had moved from Conway. That person is still there, still doing benefits related stuff.
Look, no tougue-in-cheek about the CEO. If the board wants to hire young, you face the consequences. He's a smart guy who inherited problems, but he will make mistakes. The easiest solution to lessen financial woes, is layoffs. For one thing, you don't miss your tee time. No homework in cutting costs that way. Otherwise, unless you run financial scenarios and do studies, you'll take the easiest route - layoffs or buyout. College people hate to study; it's painstaking. Your weekends are screwed.
I think it was a lady that handled benefits ? She came from Conway and never really fit in with the group here in Houston.
Who went to Concho from HR ??
I assume the comment about the CEO being young was tongue in cheek-- he's 58... he may seem young , cause he is unable to make any sense ...
I continue to hear slight rumblings of more layoffs coming . I know there are more but one h r person went to concho , I think others .
I know many from spring office are looking for other positions , so sharpen resume and contacts
No breaks for the CEO. He is an incompetent clown. Ignorance is on display everyday and combined with his arrogance leads to turnover and ultimately more layoffs.
If senior people retiring with incentives in package to do so (common!!! Especially in oil and gas) why not. Exxon, Chevron etc have all done so to reduce overhead and expenses.
Give the CEO a break. He's young and has every right to make mistakes. The board should have hired more experience.
This absolutely accurate. The CEO and the VP of Administration who is his buddy have destroyed the culture, and have brought this company to it's knees.
When will it end !
Question is there a retirement incentive where 17 years service converted to 20 or any vesting incentives.
DVS ?
Interesting both Boling and DVS retired with last day 4/25/2017 per Bloomberg(was package offered? Still being offered?????). Now our shrikning website has one page with Management..
Did DVS retire/leave Swn willingly or see handwriting on the wall with Fayetteville. Kinda young to retire.
not sure you could get $2 Billion for Fayetteville. But looks like Way has no intention to sell it because he just hired an SVP from the outside to replace retired DVS.
I didn't write the post below, but I think most would see selling the Fayetteville as the obvious move .. However ,, it's now an old, tired, expensive to operate asset. It might fetch $2billion at most. Just nothing is economic and looks likes the moorefield isn't working out well.
Of course any buyer would cut 20-25% of field staff and the vast majority of spring office staff .. most companies would run the Fayetteville with maybe a dozen petroleum tech and land men ... plus land admin
The recent debt deal mostly buys bill way a couple of years at multi million $ pay
You suggest they sell something to pay off debt? What would you want them to sell?
Agree desperate. Market not eating it up and can see the move as desperate. Just kicking debt foward BUT IT'S STILL DEBT. It remains a weight on company growth and on employee stability and does NOTHING to show new discoveries or enhanced technical abilities. It does not change the NG futures curve one iota. Suggest they sale something and truly pay down debt.
AGree that paying off 4% with 7.5 % is desperate, and the only thing to do. I do think its a judgement on Way totally. It goes back to a while of poor moves ( the difference is that way is just has a bad vibe) ...
The real point to this web site posting is what does it mean to the common employee... It means that the company will be exactly what it is today for the next 5 years.... Limited cash, no ability to grow, limited career opportunities, and plikely continuous layoffs a la Conoco Phillips ( where did Way come from ? COP) ....
the difference is each day one less good location left to drill, gas prices probably staying low, deferred pipelines in Appalachia.
It just seems hopeless
If they're upgraded the interest rate will lower. What do you suggest they do? Watch the tsunami of debt come at them and stand there?
"it's desperate because you are paying off 4% debt with 7.5% debt. you're going to pay +$30 million per year in additional interest. sure you are creating "a few years of debt free runway", but that just means you already know your strategy for growth in the future isn't going to work. you say "very common" - I agree it's very common for desperate companies with weak-minded CEOs and clueless board of directors."
Totally agree. It may be common for companies to refinance their debt. But trading 4% interest with 7.5% for just one or two years of extension is desperate
it's desperate because you are paying off 4% debt with 7.5% debt. you're going to pay +$30 million per year in additional interest. sure you are creating "a few years of debt free runway", but that just means you already know your strategy for growth in the future isn't going to work. you say "very common" - I agree it's very common for desperate companies with weak-minded CEOs and clueless board of directors.
How is this desperate? SWN did what numerous companies do every year...refinance their debt to create a few years of debt free runway. Very common.
Seeking Alpha: Southwestern Energy prices $1.15B in debt
Sep. 11, 2017 7:21 PM • Jason Aycock
Southwestern Energy (SWN +4.4%) has priced an offering of $1.15B in debt in two tranches.
The company's offering $650M in 7.5% senior unsecured notes due 2026, and a $500M series of 7.75% senior unsecured notes due 2027.
Both series will be sold at 100% of face value.
Net proceeds are expected at about $1.133B; SWN will use $327M to repay a 2015 term loan, and the rest along with cash on hand to fund tender offers (for any and all of its 4.05% senior notes due 2020, and $100M of each of 4.1% senior notes due 2022 and 4.95% senior notes due 2025).