On Monday, Susquehanna maintained a Neutral rating on Southwestern Energy (NYSE:SWN) but raised the price target for the company's shares to $7.00, up from the previous $6.50 target. The adjustment follows Southwestern Energy's fourth-quarter production report, which aligned with market expectations, and an earnings per share (EPS) figure that slightly exceeded forecasts.
The company's fourth-quarter production reached 4,622 million cubic feet equivalent per day (Mcfe/d), matching the projections set by analysts. In addition, Southwestern Energy reported an EPS of $0.08, marginally surpassing estimates.
Based on these results, Susquehanna has updated its production forecast for Southwestern Energy for the years 2024 and 2025. The firm now anticipates production levels of 4,579 Mcfe/d and 4,692 Mcfe/d, respectively, with EPS predictions standing at $0.76 for 2024 and $0.97 for 2025.
Southwestern Energy has not issued any guidance due to its ongoing merger process with Chesapeake Energy Corporation (NYSE:CHK). The revised price target of $7.00 takes into account the conversion ratio of CHK shares to Southwestern Energy shares as part of the merger agreement.
The new price target reflects the latest available data and the potential impact of the corporate action on Southwestern Energy's stock value.
The merger between Southwestern Energy and Chesapeake Energy is a significant event for both companies. However, details regarding the completion of the merger or the future operational strategy of the combined entity have not been disclosed at this time.
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