Southwestern Energy SWOT Analysis, USP & Competitors

Posted in Energy, Total Reads: 648
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SWOT Analysis of Southwestern Energy with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Southwestern Energy

Parent Company

Southwestern Energy

Category

Oil and Gas

Sector

Energy

Tagline/ Slogan

We are Energy

USP

The fifth largest producer of natural gas in the United States

STP

Segment

Enterprises and individuals with energy requirements

Target Group

Entities which require natural gas and crude oil

Positioning

A growing independent energy company primarily engaged in natural gas and crude oil exploration, development and production

SWOT Analysis

Strengths

1. It has strong E&P operations, driven by the results of Fayetteville and Marcellus shale plays, and as a result, strong reserve position, which has helped it achieve high levels of production
2. Its low cost operations, because of its vertically integrated midstream operations and acreage positions of its reserves, are helping it to increase production growth
3. It has a strong asset portfolio and operations in East Texas have been expanded to include new opportunities targeting the Overon, Travis Peak, JamesLime, Haynesville Shale, Middle Bossier, and Pettet formations which will help enhance its overall returns

4. Natural gas exploration and development is the centerpiece of its business strategy and the core strength of its enterprise

Weaknesses

1. Its dependence on third party gathering systems and pipelines, to bring to the market its natural gas production from areas in which it does not have its own midstream operations, restricts its ability to conduct smooth and profitable operations
2. Its high indebtedness requires it to dedicate a substantial amount of cash flow from its operations to payments, thereby reducing its available cash flow for its business activities

Opportunities

1. Its venture to find and develop new oil and natural gas plays with significant exploration and exploitation potential and its focus on newer technologies like horizontal drilling and fracture stimulation techniques will enhance its competitive position
2. Its expanding midstream services segment will help generate revenue through transportation of natural gas to market of its own as well as for some other third parties
3. The expansion of its shale gas plays at Fayetteville, Barnett and Marcellus will generate good returns once generated optimally

Threats

1. Highly volatile prices of oil, NGL and gas due to market uncertainties can adversely affect its profitability and future growth
2. Intense competition from other players, which have a substantially larger base and financial condition, can erode its market share
3. Under the New Source Performance Standards (NSPS) and National Emission Standards for Hazardous Air Pollutants (NESHAPS) programs, The Environmental Protection Agency (EPA) in the US has asserted federal regulatory authority over certain hydraulic fracturing which Southwester utilizes in its E&P , and this can have an adverse impact upon its operations

Competition

Competitors

1. Newfield Exploration company
2. Shell Oil Company
3. Marathon Oil corporation
4. Questar Corporation

 


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