NEW YORK (TheStreet) -- Shares of Southwestern Energy (SWN) fell more than 5% to a 52-week low of $27.56 in morning trading Tuesday after the company on Monday said it would increase its capital spending program in 2015.
The Houston-based company said it is planning for a capital expenditure program of approximately $2.6 billion, up from a previous projection of $2.4 billion. This excludes acquisition capital for transactions announced in the fourth quarter.
Southwestern is also targeting a production increase of approximately 28% next year.
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Southwestern made the announcements after several other energy companies made clear their intentions to reduce spending as oil prices hit five-year lows. West Texas Intermediate crude for February delivery touched $53.52 on Monday, its lowest price since May 2009, as a global oversupply continues to drag down oil prices.
Brent crude was down 0.52% to $57.58 at 11:28 a.m. on Tuesday.
Separately, TheStreet Ratings team rates SOUTHWESTERN ENERGY CO as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SOUTHWESTERN ENERGY CO (SWN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share and increase in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."