UPLIFTING

June 2012 Update

NYSE: SWN

Southwestern Energy Company

General Information
Southwestern Energy Company is an independent natural gas company whose wholly-owned subsidiaries are engaged in natural gas and oil exploration and production and natural gas gathering and marketing. g g g p p g g g g

Market Data as of June 1, 2012

NYSE: SWN Shares of Common Stock Outstanding 349,124,547 g , , Market Capitalization $9,576,000,000 Institutional Ownership 90.2% Management and Board Ownership 2.8% 52 Week 52-Week Price Range $27.43 (6/1/12) $49.00 (7/22/11)

Investor Contacts
Greg D. Kerley
Executive Vice President and Chief Financial Officer Phone: (281) 618-4803 Fax: (281) 618-4820

Brad D. Sylvester, CFA

Vice P Vi President, Investor Relations id t I t R l ti Phone: (281) 618-4897 Fax: (281) 618-4820

Forward-Looking Statements
All statements, other than historical facts and financial information, may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements that address activities, outcomes and other matters that should or may occur in the future, including, without limitation, statements regarding the financial position, business strategy, production and reserve growth and other plans and objectives for the companys future operations, are forward-looking company s forward looking statements. Although the company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. The company has no obligation and makes no undertaking to publicly update or revise any forward-looking statements. You should not place undue reliance on forward-looking statements. They are subject to known and unknown risks, uncertainties and other factors that may affect the companys operations, markets, products, services and prices and cause its actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In addition to any p p y g assumptions and other factors referred to specifically in connection with forward-looking statements, risks, uncertainties and factors that could cause the companys actual results to differ materially from those indicated in any forward-looking statement include, but are not limited to: the timing and extent of changes in market conditions and prices for natural gas and oil (including regional basis differentials); the companys ability to fund the companys planned capital investments; the companys ability to transport its production to the most favorable markets or at all; the timing and extent of the companys success in discovering, developing, producing and estimating reserves; the economic viability of, and the companys success in drilling, the companys large acreage position in the Fayetteville Shale play overall as well as relative to other productive shale gas plays; the impact of government regulation, including any increase in severance or similar taxes, legislation relating to hydraulic fracturing, the climate and over the counter derivatives; the costs and availability of oilfield personnel, services and drilling supplies, raw materials, and equipment, including pressure pumping equipment and crews; the companys ability to determine the most effective and economic fracture stimulation for the Fayetteville Shale formation; the companys future property acquisition or divestiture activities; the impact of the adverse outcome of any material litigation against the company; the effects of weather; increased competition and regulation; the financial impact of accounting regulations and critical accounting policies; the comparative cost of alternative fuels; conditions in capital markets, changes in interest rates and the ability of the companys lenders to provide it with funds as agreed; credit risk relating to the risk of loss as a result of non-performance by the companys counterparties and any other factors listed in the reports the company has filed and may file with the Securities and Exchange Commission (SEC). For additional information with respect to certain of these and other factors, see the reports filed by the company with the SEC. The company disclaims any intention or obligation to update or revise any f forward-looking statements, whether as a result of new information, f f f future events or otherwise. The SEC has generally permitted oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use the terms estimated ultimate recovery, EUR, probable, possible, and non-proven reserves, reserve potential or upside or other descriptions of volumes of reserves potentially recoverable through additional drilling or recovery techniques that the SECs guidelines may prohibit us from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject t substantially greater risk of b i actually realized b th company. di l bj t to b t ti ll t i k f being t ll li d by the
The contents of this presentation are current as of May 3, 2012.

About Southwestern

Focused on exploration and production of natural gas.

5.9 Tcfe of reserves; 11.8 R/P at year-end 2011.

E&P strategy built on organic growth through the drillbit.

Over 80% of planned E&P capital allocated to drilling in 2012.

Track record of adding significant reserves at low costs. costs

From 2006 to 2011, weve averaged over 40% annual production and reserve growth and annually replaced over 400% of our production at an F&D cost of $1.31 per Mcfe.

Proven management team has increased Southwesterns market capitalization from Southwestern s $187 million at year-end 1998 to over $9 billion today. Strategy built on the Formula:

The Right People doing the Right Things, wisely investing the cash flow from the underlying Assets will create Value +.

Forward-Looking Statement

Recent Developments

First Quarter 2012 Highlights

Production of 133.4 Bcfe, up 16%, due to strong Fayetteville and Marcellus results. Drilling D illi on 540 000 net acre position i a new unconventional h i 540,000 t iti in ti l horizontal oil play t t l il l targeting th ti the Lower Smackover Brown Dense formation in southern Arkansas and northern Louisiana. Drilling on 264,000 net acre position in a new unconventional oil play in Colorado. One of the lowest cost operators in the industry finding and development costs(1) of $1.31 per $1 31 (2) of $1.31 per Mcfe. Mcfe and cash operating costs Strong balance sheet and financial position as of March 31, 2012: Net debt-to-book capitalization ratio of 25%. Nothing drawn on unsecured revolving credit facility of $1.5 billion. Cash on hand of approximately $200 million.

Strong Growth and Low-Cost Operations Set the Stage for a Record 2012

2012 projected capital investment program of $2.1 billion. 2012 production projected to grow 13%.

(1)

(2)

Finding and development costs for the twelve months ended December 31, 2011 includes reserve revisions and excludes capital investments in our sand facility, drilling rig related and ancillary equipment of approximately $21 million. Excluding revisions and capital investments in our sand facility, drilling rig related and ancillary equipment, our finding and development cost was $1.34/Mcfe. Cash operating costs for the three months ended March 31, 2012, include lease operating expenses ($0.83/Mcfe), general and administrative expenses ($0.30/Mcfe), taxes other than income taxes ($0.13/Mcfe) and net interest expense ($0.06/Mcfe).

Forward-Looking Statement

Proven Track Record

For the Periods Ended December 31

Production(Bcfe)
500

Proved P d Reserves(Bcfe)
5,893

EBITDA($MM) (1)
1,780 1,612 4,937 1,368 1,362

F&DCost($/Mcfe)
2.72 2.55

405

300

3,657

1.59

1.70 1.43 1.32 1.53 1.31 1.02 1 02 0.86

195

2,185 1,450 646 1,026 827 151 104 134 99 346 255 415

675

0.92

0.99

113 36 40 40 41 72 54 61 381 402 415 503

00 01 02 03 04 05 06 07 08 09 10 11

00 01 02 03 04 05 06 07 08 09 10 11

00 01 02 03 04 05 06 07 08 09 10 11

00 01 02 03 04 05 06 07 08 09 10 11

Note: Reserve data includes reserve revisions and excludes capital investments in our sand facility, drilling rig related and ancillary equipment. (1) EBITDA is a non-GAAP financial measure. See explanation and reconciliation of EBITDA on page 36.

Areas of Operations

Exploration & Production Segment

2011: 5,893 Bcfe of Reserves Production - 500 0 Bcfe 500.0 2012 Est. Production: 560-570 Bcfe
ARKANSAS OKLAHOMA

PENNSYLVANIA

Marcellus Shale
Reserves: 342 Bcf (6%) Production: 23.4 Bcf (5%) Net Acres: 186,893 (12/31/11)

New Ventures

Fayetteville Shale
Reserves: 5,104 Bcf (87%) Production: 436.8 Bcf (87%) Net Acres: 925,842 (12/31/11)

Brown Dense Approx. 540,000 net acres Colorado Approx. 264,000 net acres New Brunswick Approx. 2.5 million acres Undisclosed Ventures Approx. 323,000 net acres

TEXAS LOUISIANA

Ark-La-Tex
Reserves:: 447 Bcf (7%) Production: 39.8 Bcfe (8%) Net Acres: 285 576 (12/31/11) N tA 285,576

Southwesterns E&P segment operates in Arkansas, Texas, Pennsylvania, Louisiana, Oklahoma and New Brunswick. Midstream Services segment provides marketing and gathering services for the E&P business.

Notes: ArkLaTex acreage excludes 125,056 net acres in the conventional Arkoma Basin operating area that are also within the companys Fayetteville Shale focus area. Reserves and acreage as of December 31, 2011. Production is a total annual amount for 2011.

Forward-Looking Statement

Capital Investments
2,500
$2,120 $2,207 $2,105 Corporate & Other Midstream Services Drilling Rigs Property Acquisitions Cap. Expense & Other E&P Leasehold & Se s c ease o d Seismic Development Drilling Exploration Drilling

2,000 2 000
($ Millions)

$1,796 $1,809 $1,503

1,500 1,000 500 0 2005 2006

$483 $942

2007

2008

2009

2010

2011

2012 Plan

Other Areas 1%

E&P capital program heavily weighted to low-risk

development drilling in 2012 2012.

Appalachia 24% New Ventures 11% Midstream 9% Corp/Other 4%

Plan to invest approximately $1.2 billion in the

Fayetteville Shale and $600 million in the Marcellus Shale (including Midstream) in 2012.

Fayetteville Shale Sh l 51%

Forward-Looking Statement

Fayetteville Shale Focus Area

SWN holds approx. 925,000 net acres in the Fayetteville Shale play (approx 1,400 sq. miles). Mississippian-age shale, geological equivalent of the Barnett Shale in north Texas. SWN discovered the Fayetteville Shale and has first mover advantage average acreage cost of $ $253 per acre with a 15% royalty and average working interest of 74%. We plan to drill approximately 425-435 operated wells in 2012.
Rates are AOGC Form 13 and Form 3 test rates.

Notes:

Forward-Looking Statement

Fayetteville Shale - Continuous Improvement

Days to Drill
17
4,836

Lateral Length
(in feet)
$2.9

Well Cost
($ in millions)
$3.0 $2.9
$2.05

F&D Cost
($ per Mcfe)

Production
(in Bcfe)
436.8

Reserves
(in Bcfe)
5,104 4,345

14
4,100

4,528

$2.8 $2.8

12 11 8
2,657

350.2

3,619

$1.21 $0.86 $0.69

3,117

$1.13

243.5

134.5

1,545 716

53.5

2007 2008 2009 2010 2011

2007 2008 2009 2010 2011

2007 2008 2009 2010 2011

2007 2008 2009 2010 2011

2007 2008 2009 2010 2011

2007 2008 2009 2010 2011

Continuous improvement in our Fayetteville Shale operations completed lateral length has increased 82% over the last four years while holding total well costs flat. Vertical integration and contiguous acreage position allow us significant economies of scale and operating flexibility.

Midstream Adding Value Beyond the Wellhead

DeSoto Gathering Lines Transmission AR Compression Facility
0 10 20 Miles

SWN s SWNs Fayetteville Shale gathering system is one of the largest in the U S U.S. At March 31, 2012, gathering approximately 2.2 Bcf per day through 1,801 miles of gathering lines, up from approximately 1.9 Bcf per day the same time a year ago. SWN has total firm transportation for the Fayetteville Shale of 2.0 Bcf per day.
( ) Midstream total EBITDA(1) in 2011 was $285 million. Projected EBITDA of $300-$305 million in 2012 million 2012.

Note: Map as of March 31, 2012. (1) EBITDA is a non-GAAP financial measure. See explanation and reconciliation of EBITDA on page 36.

10

Forward-Looking Statement

Marcellus Shale
Millennium New York

New York Pennsylvania

Stagecoach

Pennsylvania

Range Trust

Greenzweig

West Virginia

Price

Lycoming

SWN
0 10 20 30 40 50 Mil Miles

Pipelines Pi li

11

At December 31, 2011, SWN held approximately 186,893 net acres in Northeast Pennsylvania. At March 31, 2012, we had 24 operated Marcellus Shale horizontal wells on production in Bradford County. Daily gross operated production was approximately 122 MMcf per day. Currently running 2 operated rigs with plans to drill 70 to 80 wells in 2012.
Forward-Looking Statement

Marcellus Shale - Horizontal Well Performance

10,000
160,000

SWN Gross Operated Production

140,000

9,000
GrossProduction(Mcf/d)

120,000

Gross operated production of approx. 122 MMcf/d as of March 31, 2012

8,000 7,000
Daily Rate, Mcf/d

100,000

80,000

60,000

40,000

6,000 5,000 4,000 3,000 , 2,000 1,000 0 0 50 100 150 200 250 300 350

Pipeline Maintenance
20,000

0
9/1/2010 12/1/2010 3/1/2011 6/1/2011 9/1/2011 12/1/2011 3/1/2012

400

450

500

550

600

Days of Production Less than 9 Stages (1 Well) 6 BCF Type Curve

Total Well Count

9-12 Stages (13 Wells)

8 BCF type Curve Type Curve

Greater than 12 Stages (10 Wells) 10 BCF Type Curve

4 BCF Type Curve

24

24

22

19

17

16

15

12

Notes: Data as of March 31, 2012.

12

Brown Dense Exploration Project

Arkoma Basin Fayetteville Little River Shale

Hempstead

Nevada
Wesson

Bowie
East Texas

-5,00 0

Camden -4,00 0

Ouachita
- 6, 0 00
El Dorado

Calhoun Bradley

Oil Field GasDrew Field SWN well OBO well OBO permit

Texarkana

Miller Lafayette

Dorcheat- Magnolia Macedonia

A r k a n s a s Smackover
Shuler Atlanta Union
-8,00 0

Columbia
1st SWN well testing

Ashley

Cass

Walker Creek Rodessa

Te x a s

-7, 0

00

Ora Shangaloo- SWN well 2nd Red Rock producing

Marion Bossier Harrison Caddo

Shreveport Bossier City

Claiborne

Union
3rd SWN well completing
Monroe Ruston

Monroe Gas Field

Morehouse
Bastrop

Webster
Minden

Louisiana
Lincoln Bienville 0 10 20 Miles

West Carroll
-9,00 0

Ouachita -12,000 Jackson

West Monroe

Richland Franklin

-14 ,000

SWN currently holds 540,000 net acres in Lower Smackover Brown Dense play. Total land
cost of approx. $354 per acre; 82% NRI; leases have 4-year terms and 4-year extensions.

Targeting oil window in Upper Jurassic age, kerogen-rich carbonate in southern Arkansas
and northern Louisiana with horizontal drilling.

Targeting 300 to 550 feet thick section at depths of 8,000 - 11,000 feet.

Currently testing our first well, producing our second well and completing our third well.
13
Forward-Looking Statement

Denver Julesburg Basin Exploration Project

Denver Julesburg Basin
CO KS
Arkoma Arkoma Basin Basin B i Fayetteville Fayetteville Shale Shale

Subsea Structure on the Top of Atoka

N M

OK

AR A R
East Texas Brown Brown Dense Dense

Denver Julesburg g Basin

TX

LA

SWN held 264,000 net acres at 3/31/12 with a

pp $ p ; total land cost of approx. $180 per acre; 85% NRI; leases with 5-year terms and 3-year extensions.

Ewertz Farms 1-58 #1-26

Targeting unconventional oil in late

Pennsylvanian-age carbonates and shales with thicknesses of 300 - 750 feet at depths of 8,000 - 10,500 feet.

Staner 5-58 #1-8

Ewertz Farms 1-58 #1-26 is currently drilling

as a 9,500 vertical well with a 2,000 lateral. A core will be obtained in the vertical pilot across th Marmaton formation. the M t f ti

Staner 5-58 #1-8 will be drilled and cored as

a 9,000 vertical well.
14
Forward-Looking Statement

New Brunswick, Canada Exploration Project

SWN currently holds exploration licenses to over 2.5 million acres within the Maritimes Basin ithi th M iti B i Principal targets are the conventional and unconventional sandstone and shale reservoirs of the Horton Group (Frederick Brook Shale) Oil and gas production from fields along southern flank:
McCully reserves 190 bcfg St Stoney C k cum 800 000 b 30 b f Creek 800,000 bo, bcfg
Green Road G-41 Well

Marysville
2,309,247 acres

Cocagne
209,271 acres

Stoney Creek

3-year initial exploration license to complete work program

Total $47MM work commitment with options of multiple 5-yr extension leases

McCully Field M C ll Fi ld

15

Outlook for 2012

Production target of 560-570 Bcfe in 2012 (estimated growth of ~13%).
2011 Actual $4.04 Gas $94.01 Oil Net Income Diluted EPS EBITDA(1) Net Cash Flow(1) CapEx Debt % $637.8 MM $1.82 $1,779.6 $1 779 6 MM $1,766.0 MM $2,207.2 MM 25% $2.50 Gas $105.00 Oil $380-$390 MM $1.09-$1.11 $1,490-$1,500 $1 490 $1 500 MM $1,460-$1,470 MM $2,105 MM 29%-31% 2012 Guidance NYMEX Price Assumption $2.75 Gas $105.00 Oil $420-$430 MM $1.20-$1.23 $1,560-$1,570 $1 560 $1 570 MM $1,530-$1,540 MM $2,105 MM 29%-31% $3.00 Gas $105.00 Oil $460-$470 MM $1.31-$1.34 $1,630-$1,640 $1 630 $1 640 MM $1,600-$1,610 MM $2,105 MM 28%-30%

( ) (1)

Net cash flow is net cash flow before changes in operating assets and liabilities. Net cash flow and EBITDA are non-GAAP financial measures. See explanation and reconciliation of nong p g p GAAP financial measures on pages 34 and 36.

16

Forward-Looking Statement

The Road to

Invest in the Highest PVI Projects. Flexibility in 2012 Capital Program. Maintain Strong Balance Sheet. Deliver the Numbers.
Production and Reserves. Maximize Cash Flow.

Continue to Tell Our Story.

17

Forward-Looking Statement

Appendix

18

Financial & Operational Summary

Quarter Ended March 31, Year Ended December 31,

2012 Revenues (1) EBITDA Adjusted Net Income Net Cash Flow (1) Adjusted Diluted EPS (1) Diluted CFPS Production (Bcfe) Avg. Gas Price ($/Mcf) Avg. Oil Price ( g ($/Bbl) ) Finding Cost ($/Mcfe) (3) Reserve Replacement (%) / ($/ f ) Net Debt/Proved Reserves ($/Mcfe) Net Debt/Avg. Daily Production ($/Mcfe) Net Debt/Total Capitalization
(1) (2) (3)

2011 $676.3 396.5 136.6 391.5 $0.39 $1.12 $1 12 115.0 $4.12 $92.11

2011 $2,952.9 1,779.6 637.8 1,766.0 $1.82 $5.05 $5 05 500.0 $4.19 $94.08 $1.31 299% $0.23 $0 23 $969 25%

2010 $2,610.7 1,612.3 604.1 1,579.7 $1.73 $4.52 $4 52 404.7 $4.64 $76.84 $1.02 430% $0.22 $0 22 $972 27%

2009 $2,145.8 1,368.1 (2) 522.7 (2) 1,441.0 $1.52 (2) $4.13 $4 13 300.4 $5.30 $54.99 $0.86 592% $0.27 $0 27 $1,197 30%

($ in millions, except per share amounts)

($ in millions, except per share amounts)

$656.5 379.4 107.7 370.8 $0.31 $1.06 $1 06 133.4 $3.49 $104.39

(3)

$999 25%

$928 28%

Net cash flow is net cash flow before changes in operating assets and liabilities Net cash flow EBITDA and diluted CFPS are non GAAP financial measures See explanation and liabilities. flow, non-GAAP measures. reconciliation of non-GAAP financial measures on pages 34 and 36. Adjusted net income and adjusted diluted EPS in 2009 exclude a $558.3 million after-tax non-cash ceiling test impairment and both are non-GAAP financial measures (while EBITDA excludes the pre-tax non-cash ceiling test impairment of $907.8 million). See explanation and reconciliation of adjusted net income and adjusted diluted EPS on page 35. Includes reserve revisions and excludes capital investments in our sand facility, drilling rig related and ancillary equipment.

19

Gas Hedges in Place Through 2013

Bcf 85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 1Q 2Q 2012 3Q 4Q 1Q 2Q 2013 3Q 4Q $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.07 $5.07 $5.07 $5.07 $5.01 $5.01 $5.01 $5.01 $5.13 $5.13 $5.13 $5.13 $5.50/ $6.80
$5.50/ $6.70 $6 70

Hedged Avg Price per Mcf Volumes (or Floor / Ceiling) Type 2012 Swaps 185.2 Bcf $5.02 Collars 80 5 Bcf 80.5 $5.50 $6.67 $5 50 / $6 67 2013 Swaps 185.2 Bcf
$5.50/ $6.80
$5.50/ $6.70 $6 70

Percent Hedged 33% 47% 14% -

$5.06

$5.50/ $6.80
$5.50/ $6.70

$5.50/ $6.80
$5.50/ $6.70

NYMEX Fixed Price Collar

$5.50/ $6.40

$5.50/ $6.40

$5.50/ $6.40

$5.50/ $6.40

20

Forward-Looking Statement

SWN is One of the Lowest Cost Operators

$4.00 $3.50 $3.00 $2.50 $2 50

Lifting Cost
per Mcfe of Production
(3 year average)

$2.00 $1.50 $1.00 $0.50 $0 50 $0.00 UPL RRC SWN COG CHK FST NBL EOG APC SM DVN XEC PXD NFX APA SD MRO OXY MUR DNR SWN

$4.00 $3.50

Finding & Development Cost

per M f Mcfe
(3 year average)

$3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $ $0.00 RRC SWN COG UPL DVN XEC CHK EOG NBL PXD MRO APC DNR SM NFX SD OXY MUR FST APA SWN

21

Source: Public filings Note: All data as of December 31, 2009, 2010 and 2011. APC - Anadarko Petroleum, APA - Apache, COG - Cabot Oil & Gas, CHK - Chesapeake Energy, XEC - Cimarex Energy, DNR - Denbury Resources, DVN - Devon Energy, EOG - EOG Resources, FST - Forest Oil, MRO - Marathon Oil, MUR - Murphy Oil, NFX - Newfield Exploration, NBL - Noble Energy, OXY - Occidental Petroleum, PXD - Pioneer Natural Resources, RRC - Range Resources, SD - Sandridge Energy, SM - SM Energy, SWN - Southwestern Energy, UPL - Ultra Petroleum. Lifting Cost per Mcfe defined as lease operating expenses plus production taxes divided by production. F&D Cost per Mcfe defined as the three-year sum of costs incurred in natural gas and oil exploration and development divided by the three-year sum of reserve additions from extensions and discoveries, improved recovery, revisions and purchases.

Ark-La-Tex Division
Arkoma Basin

Arkoma Basin
Acreage: 194,494 net acres (at 12/31/11) 2011 Reserves: 194 Bcf (3% of total) 2011 P d ti Production: 16 3 B f (3% of total) 16.3 Bcf f t t l)

Arkoma Basin

OK AR

East Texas

East Texas
LA

TX

East Texas
Acreage: 91,082 net acres (at 12/31/11) 2011 Reserves: 253 Bcfe (4% of total) 2011 Production: 23.5 Bcfe (5% of total)
Sold Overton Field in May 2012 (23 MMcfe/d and 138 Bcfe).
Notes: Conventional Arkoma acreage excludes 125,056 net acres in the conventional Arkoma Basin operating area that are also within the companys Fayetteville Shale focus area. Overton Field production as of May 2012; total reserves as of December 2011.

22

Fayetteville Shale - Horizontal Well Performance

Time Frame 1st Qtr 2007 2nd Qtr 2007 3rd Qtr 2007 4th Qtr 2007 1st Qtr 2008 2nd Qtr 2008 3rd Qtr 2008 4th Qtr 2008
(1)

Wells Placed on Production 58 46 74 77 75 83 97 74 120 111 93 122 106 143 145 159 137 149 132 142 146

Average IP Rate (Mcf/d) 1,261 1,497 1,769 2,027 2,343 2,541 2,882 2 882 3,350
(1)

30th-Day Avg Rate (# of wells) 1,066 (58) 1,254 (46) 1,510 (72) 1,690 (77) 2,147 (75) 2,155 (83) 2,560 2 560 (97) 2,722 (74) 2,537 (120) 2,833 (111) 2,624 (93) 2,674 (122) 2,388 (106) 2,554 (143) 2,448 (145) 2,678 (159) 2,604 (137) 2,328 (149) 2,666 (132) 2,606 (142) 2,459 (120)

60th-Day Avg Rate (# of wells) 958 (58) 1,034 (46) 1,334 (72) 1,481 (77) 1,943 (74) 1,886 (83) 2,349 2 349 (97) 2,386 (74) 2,293 (120) 2,556 (111) 2,255 (93) 2,360 (120) 2,123 (106) 2,321 (142) 2,202 (144) 2,294 (159) 2,238 (137) 1,991 (149) 2,372 (132) 2,243 (142) 2,058 (58)

Avg Lateral Length 2,104 2,512 2,622 3,193

Gross Produ uction (MMcf/d)
2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 600

SWN Gross Operated Production

3,301 3,562 3,736 3 736 3,850 3,874 4,123 4,100 4,303 4,348 4,532 4,503 4,667 4,985 4,839 4,847 4,703 4,743

Gross operated production of approx. 1,988 MMcf/d as of March 31, 2012

1st Qtr 2009(1) 2nd Qtr 2009 3rd Qtr 2009 4th Qtr 2009 1st Qtr 2010
(2)

2,992(1) 3,611 3,604 3,727 3,197

(2)

400 200 0 Jan '06

Pipeline Curtailment Issues

Jul '06

Jan '07

Jul '07

Jan '08

Jul '08

Jan '09

Jul '09

Jan '10

Jul '10

Jan '11

Jul '11

Jan '12

Jul '12

2nd Qtr 2010 3rd Qtr 2010 4th Qtr 2010 1st Qtr 2011 2nd Qtr 2011 3rd Qtr 2011 4th Qtr 2011 1st Qtr 2012

3,449 3,281 3,472 3,231 3,014 3,441 3,646 3,319

Gross operated production of approx. 1,988 MMcf/d as of March 31, 2012. 2011 Fayetteville Shale F&D cost of $1.13/Mcf.

23

Note: Data as of March 31, 2012. (1) The significant increase in the average initial production rate for the fourth quarter of 2008 and the subsequent decrease for the first quarter of 2009 primarily reflected the impact of the delay in the Boardwalk Pipeline. (2) In the first quarter of 2010, the companys results were impacted by the shift of all wells to green completions and the mix of wells, as a large percentage of wells were placed on production in the shallower northern and far eastern borders of the companys acreage.

Fayetteville Shale Horizontal Well Performance

Mcf/d 5000
>5,000 ft Well Count 4500

399 379 1101

321 964

272 866

202 737

157 604

120 513

70 378

45 299

30 233

18 177

8 115

4 66

5 42

1 1 17 1

>4,000 >4 000 ft 1159 Well 4000 Count

3500

3000

2500

4 Bcf Typecurve 3 Bcf Typecurve 2 Bcf Typecurve All Wells Wells with Laterals >5000' DLL Wells with Laterals >4000' DLL Wells with Laterals >3000' DLL

2000

1500

1000

500 >3,000 ft Well Count 1909 0 0

Total Well Count

1811

1633

1526

1337

1183

1073

898

767

678

564

448

330

264

181

104

100
2202

200
2046

300
1916

400
1738

500
1585

600
1436

700
1259

800
1123

900
1013

1000
888

1100
783

1200
642

1300
566

1400
459

1500
370

2347

Days of Production

Notes: Data as of March 31, 2012. Excludes wells with mechanical problems (31).

24

Drilling & Completion Major Cost Categories

Average 2012 Fayetteville Shale Well Cost Estimate

Major Cost Categories - $2,866M

Fracture Stimulation Rig OCTG

25% Fracture Stimulation $726 M

Environmental & Restoration Drilling Fluids Directional Drilling g Wellhead & Surface Equipment Other Water Treatment/Disposal Supervision Surface Rantals Location

Rig $273 M 10% OCTG $239M 8%

Wireline Rentals Coil Tubing D&C Fluids Bits Cementing Fuel & Water Trucking & Transportation Formation Evaluation Special Services

25

Forward-Looking Statement

Water Demand: Perspective

Statewide Demand: SWN Operations Demand:

11,500 million gallons/day

10 million gallons/day (600 Wells/year)

SWN Operations
Less than 0.09% of States water usage 33% Ground Water 20% Recycle/Reused Water SGW, FBW, & PW 93% Surface Water 80% Surface Water

66% Surface Water

Source: U.S. Geological Survey, Central Arkansas Water, Southwestern Energy Company estimates. Shallow Ground Water (SGW) Ground water recovered from shallow formations during the air drilling process. Flow Back Water (FBW) Frac Fluid that is recovered from the well after the fracture stimulation. Produced Water (PW) Natural formation water that is returned to the surface throughout the producing life of the well.

26

Fayetteville Shale Production Compared to the Barnett

3,400 3,200 3,000 3 000 2,800 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
Barnett Shale Production Fayetteville Shale Production

> 7 Years

Total Fayetteville Shale Field Average Daily Production for February 2012: 2,723 MMcf/d

> 28 Years

MMcf/d

We collapsed the learning curve dramatically; Paradigm shift in gas prices

Years

Source: Tudor, Pickering, Holt & Co. Securities, Inc., Arkansas Oil & Gas Commission

27

Fayetteville Shale Activity Compared to the Barnett

Barnett Shale Play

1981 1st Well Drilled
1214

2508 2117

1586 1643

1992 1st Horizontal Well Drilled

701

1997 1st Slickwater Frac

2 1 Average 7 wells/year Average 28 wells/year Average 75 wells/year 165 408 669 70 663

260

524 351 276 178 145 54 65

1981 - 1989

1990 - 1994

1995 - 1999

2000 01

02

03

04

05

06

07

08

09

10

Fayetteville Shale Play

Q3 2005 1st Slickwater Frac
690

858

653

Q1 2005 1st Horizontal Well Drilled

419

Q2 2004 1st Well Drilled

Horizontal Wells Drilled Vertical Wells Drilled

103 14 13 37 12 13 14 2

2004 05

06

07

08

09

10

Source: Republic Energy Co., PI-Dwights (IHS Energy), Southwestern Energy

28

U.S. Gas Consumption and Sources

Bcf

30,000

25,000

20,000

15,000

U.S. gas production rising in recent years.

10,000

5,000

0 1975 1980 1985

U.S. Gas Consumption

1990

1995
U.S. Dry Gas Production

2000

2005

2010

Net Imports

Source: EIA

29

U.S. Electricity Consumption

350

325

300

Billion Kilowatt Hours Per Month

275

250

225 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12

Source: Edison Electric Institute

30

U.S. Electricity Generation

Electricity Generation by Energy Source
Total 4,120 Billion kWh in 2010.

Electricity Generation Capacities

While coal and nuclear power plants operate at very high capacity, natural gas power plants are only running at 24% of their capacity.

4.1% 6.1%

0.3%

38%
Unused Capacity

76%
Unused Capacity

333,035
19.6% 44.9%

430,697 430 697

0.3%

14%
Unused Capacity

105,764
23.8% 0.9%

211,273 112,079 112 079

92,120
Coal Natural Gas Nuclear Petroleum Other Gases Hydroelectric 2010 Generation
* Excludes standby units SOURCE: EIA

Nuclear

Coal

Natural Gas
2009 Capacity* p y

Other Renewables Other

SOURCE: EIA

31

U.S. Gas Drilling and Prices

Gas Rigs Drilling
2,500

Gas Price $/MMBtu

$16.00

2,000

$12.00

1,500

$8.00

1,000
Gas Ri G Rigs Gas Price

$4.00

500

$0.00

Source: Baker Hughes, Bloomberg

32

Oil and Gas Price Comparison

$/Bbl
150.00

$/MMBtu
15.00

120.00

Henry Hub Natural Gas (right scale)

WTI Crude (left scale)

12.00

90.00

9.00

60.00

6.00

30.00

3.00

0.00 97
Source: Bloomberg

0.00 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12

33

Explanation and Reconciliation of Non-GAAP Financial Measures: Net Cash Flow

We report our financial results in accordance with accounting principles generally accepted in the United States of America (GAAP). However, management believes certain non-GAAP performance measures may provide users of this financial information additional meaningful comparisons between current results and the results of our peers and of prior periods. One such non-GAAP financial measure is net cash flow. Management presents this measure because (i) it is accepted as an indicator of an oil and gas exploration and production companys ability to internally fund exploration and development activities and to service or incur additional debt, (ii) changes in operating p y y y p p , ( ) g p g assets and liabilities relate to the timing of cash receipts and disbursements which the company may not control and (iii) changes in operating assets and liabilities may not relate to the period in which the operating activities occurred. These adjusted amounts are not a measure of financial performance under GAAP.

3 Months Ended March 31, 2012 2011 Net cash provided by operating activities Add back (deduct): Change in operating assets and liabilities Net cash flow $ $444,663 (73,843) 370,820 $ $ 396,479 (4,947) 391,532

2011

12 Months Ended December 31, 2010 2009

(in thousands)

$ 1,739,817 26,201 $ 1,766,018

$ 1,642,585 (62,906) $ 1,579,679

$ 1,359,376 81,652 $ 1,441,028

2012 Guidance NYMEX Commodity Price Assumption $2.50 Gas $2.75 Gas $3.00 Gas $105.00 Oil $105.00 Oil $105.00 Oil
($ in millions)

Net cash provided by operating activities Add back (deduct): Assumed change in operating assets and liabilities Net cash flow

$1,460-$1,470 -$1,460-$1,470

$1,530-$1,540 -$1,530-$1,540

$1,600-$1,610 -$1,600-$1,610

34

Forward-Looking Statement

Explanation and Reconciliation of Non-GAAP Financial Measures: Adjusted Net Income

Additional non-GAAP financial measures we may present from time to time are net income attributable to Southwestern Energy and diluted earnings per share attributable to Southwestern Energy stockholders, both of which exclude certain charges or amounts. Management presents these measures because (i) they are consistent with the manner in which the Companys performance is measured relative to the performance of its peers, (ii) these measures are more comparable to earnings estimates provided by securities analysts, and (iii) charges or amounts excluded cannot be reasonably estimated and guidance provided by the Company excludes information regarding these types of y g p y p y g g yp items. These adjusted amounts are not a measure of financial performance under GAAP.

12 Months Ended December 31, 2009

($ in thousands) (per share)

Net loss attributable to SWN Add back: Impairment of natural gas & oil properties (net of taxes) Adjusted net income

(3 , (35,650) ) 558,305 522,655

( (0.10) ) 1.62 1.52

35

Explanation and Reconciliation of Non-GAAP Financial Measures: EBITDA

EBITDA is defined as net income plus interest, income tax expense, depreciation, depletion and amortization. Southwestern has included information concerning EBITDA because it is used by certain investors as a measure of the ability of a company to service or incur indebtedness and because it is a financial measure commonly used in the energy industry. EBITDA should not be considered in isolation or as a substitute for net income, net cash provided by operating activities or other income or cash flow data prepared in accordance with generally accepted accounting p principles or as a measure of the company's profitability or liquidity. EBITDA as defined above may not be comparable to similarly titled measures of p p y p y q y y p y other companies. Net income is a financial measure calculated and presented in accordance with generally accepted accounting principles. The table below reconciles historical EBITDA with historical net income.
3 Months Ended March 31, 2012 2011 Net income (loss) attributable to SWN Add back: Net interest expense Provision (benefit) for income taxes Depreciation, Depreciation depletion and amortization EBITDA $107,704 7,338 70,718 193,627 193 627 379,387 $ 136,609 7,436 88,980 163,447 163 447 396,472 $ 2011 (1) 637,769 $ 2010 604,118 $ 2009 (35,650) (2) $ 2008 567,946 $ 2007 221,174 23,873 135,855 294,500 294 500 675,402 12 Months Ended December 31, 2006 2005
($ in thousands)

2004 $ 103,576 16,992 59,778 74,919 74 919 255,265 $

2003 48,897 $

2002 14,311 21,466 8,708 54,095 54 095 98,580 $

2001 35,324 23,699 21,917 53,003 53 003 133,943 $

2000 20,461 (6) 24,689 11,457 47,505 47 505 104,112 (6)

162,636 679 99,399 151,795 151 795 414,509

147,760 15,040 86,431 96,641 96 641 345,872

24,075 413,221 704,511 704 511 $ 1,779,576

26,163 391,659 590,332 590 332 $ 1,612,272

18,638 28,904 (16,363) (3) 350,999 1,401,470 1 401 470 (4) 414,460 414 460 $ 1,368,095 $ 1,362,309

17,311 28,372 (5) 56,833 56 833 151,413 $

(1) Net income for the Midstream Services segment w as $142,591, depreciation, depletion and amortization w as $37,261, net interest expense w as $15,049 and provision for income taxes w as $90,221. (2) Net income (loss) includes the after tax $558.3 million non-cash ceiling impairment of our natural gas and oil properties recorded in Q1 2009. (3) Provision (benefit) for income taxes includes the ($349.5) million income tax benefit related to the non-cash ceiling impairment of our natural gas and oil properties recorded in Q1 2009. (4) Depreciation, depletion and amortization includes the $907.8 million non-cash ceiling impairment of our natural gas and oil properties recorded in Q1 2009. (5) Provision for income taxes for 2003 includes the tax benefit associated w ith the cumulative effect of adoption of accounting principle. (6) 2000 amounts exclude unusual items of $109.3 million for the Hales judgment and $2.0 million for other litigation.

The bl below reconciles f Th table b l il forecasted EBITDA with f d i h forecasted net i d income f for 2012 assuming various NYMEX price scenarios and the 2012, i i i i d h corresponding estimated impact on the company's results for 2012, including current hedges in place:
2012 Guidance Overall Corporate NYMEX Commodity Price Assumption $2.50 Gas $2.75 Gas $3.00 Gas $105.00 $105 00 Oil $105.00 $105 00 Oil $105.00 $105 00 Oil
($ in millions)

Midstream Services Segment (1) $135-$140 89-92 26-28 46-48 $300 $305 $300-$305

Net income attributable to SWN Add back: Provision for income taxes Interest expense Depreciation, depletion and amortization EBITDA

$380-$390 249-256 54-56 800-810 $1,490 $1,500 $1,490-$1,500

$420-$430 275-282 54-56 800-810 $1,560 $1,570 $1,560-$1,570

$460-$470 302-308 54-56 800-810 $1,630 $1,640 $1,630-$1,640

(1) Midstream Services segment results assume NYMEX commodity prices of $2.50 per Mcf for natural gas and $105.00 per barrel for crude oil for 2012.

36

Forward-Looking Statement