Is Southwestern Energy (SWN) a Smart Long-Term Investment?

Greenlight Capital, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. The Greenlight Capital funds (the “Partnerships”) returned 4.4%1 in the first quarter of 2022, compared to a 4.6% decline for the S&P 500 index. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Greenlight Capital mentioned Southwestern Energy Company (NYSE:SWN) and explained its insights for the company. Founded in 1929, Southwestern Energy Company (NYSE:SWN)  is a Houston, Texas-based natural gas exploration and production company with an $8.6 billion market capitalization. Southwestern Energy Company (NYSE:SWN)  delivered a 67.17% return since the beginning of the year, while its 12-month returns are up by 99.23%. The stock closed at $7.79 per share on April 21, 2022.

Here is what Greenlight Capital has to say about Southwestern Energy Company (NYSE:SWN) in its Q1 2022 investor letter:

SWN is the second largest producer of natural gas in the U.S. The company is well-situated to satisfy growing domestic and export demand. Over the short, medium and long term, Europe now intends to reduce its reliance on Russian energy and increase its use of U.S. LNG. Based on its 2021 year-end reserves – which assumed a $3.60/MMBtu long-term natural gas price – SWN has a PV-104 value of $13.83 per share. By the end of the first quarter, the U.S. natural gas 5-year forward curve averaged $4.28/MMBtu, while international seaborne LNG was close to $20/MMBtu. Over the intermediate term, with the benefit of substantial global investment in infrastructure, we expect prices for U.S. and international natural gas to converge. We acquired our shares at an average price of $6.58. SWN shares ended the quarter at $7.17.”

Natural Gas


Our calculations show that Southwestern Energy Company (NYSE:SWN) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Southwestern Energy Company (NYSE:SWN) was in 24 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 22 funds in the previous quarter. Southwestern Energy Company (NYSE:SWN) delivered a 93.30% return in the past 3 months.

In April 2022, we published an article that includes Southwestern Energy Company (NYSE:SWN) in 4 Best Energy Stocks to Buy According to Stuart Zimmer’s Hedge Fund. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.