Southwestern Energy 3Q Profit Down 45.8 Percent

HOUSTON (AP) — Natural gas and oil producer Southwestern Energy Co. said on Thursday that its third-quarter profit fell 45.8 percent as natural gas prices dropped sharply.

The company earned $118.3 million, or 34 cents per share, during the quarter that ended Sept. 30. That was down from $218.2 million, or 63 cents per share, during the same period in 2008. Revenue fell 26.3 percent to $502.9 million, from $683 million a year earlier.

Analysts surveyed by Thomson Reuters were expecting a profit of 34 cents per share.

The company said the lower natural gas prices were only partially offset by higher production volumes. It also noted that results in the year-ago quarter included a gain of $35.4 million, or 10 cents per share, on the sale of its utility assets.

Executive Chairman Harold M. Korell said fourth quarter results won't be held back by factors such as maintenance and repairs on its Boardwalk pipeline, which was put back into use earlier than expected. He also said gas prices appear to be moving higher than they have been over the past 9 months.

The company raised its gas and oil production estimate. It now expects 86 to 89 billion cubic feet of natural gas equivalent in the fourth quarter, up from 74 to 82 Bcfe expected previously.

Southwestern Energy shares were unchanged in late trading. Before the announcement they rose $2.27, or 5.2 percent, to close at $45.89.