THE BIG PICTURE: Southwestern Energy has less incentive to spend money on its gas drilling operations this year as the price of natural gas continues to linger around 10-year lows. Just a few years ago, natural gas was one of the pricier sources of energy. But producers have brought up huge amounts of gas from shale deposits, filling the nation's storage facilities nearly to overflowing and pushing down prices.
So companies like Southwestern Energy make less on the open market and hesitate to spend more on producing gas.
THE ANALYSIS: Southwestern Energy dropped its 2012 production forecast to surprisingly low levels. Analyst Coleman said in a note to clients that he had thought the company would produce 577 billion cubic feet during the year. With the lower outlook, he cut his 2012 earnings forecast by 7 percent to $1.23 per share. He rated the company "Market Perform."
SHARE ACTION: Southwestern shares fell $2.45, or nearly 7 percent, to $32.88 in afternoon trading. The stock has ranged between $28.37 and $49.25 in the past 52 weeks.
