Texas-based integrated energy firm Southwestern Energy has announced a planned capital investment program of $1.46 billion for 2008, of which $1.33 billion is for the exploration and production segment.
The company said that out of the remaining capital, $101 million will be allocated to its midstream gathering segment and $25 million for its utility business and other corporate purposes.
Of the $1.33 billion exploration and production capital budget, $1.09 billion will be invested in development and exploratory drilling, $61 million in seismic and other geological and geophysical expenditures, $42 million in leasehold and $142 million in capitalized interest and expenses and other equipment, facilities and technology related expenditures.
The company’s $1.46 billion 2008 capital program is expected to be funded by proceeds from internally-generated cash flow, borrowings under its revolving credit facility and funds raised in the public debt markets, and proceeds from the sale of the company’s utility business and non-core E&P assets.
Harold Korell, president and CEO, said: With a 35% increase in production volumes built into our plan, in 2008 we will focus on improving per well results in the Fayetteville Shale and narrowing the gap between our capital investments and our cashflow. The year 2008 could see further changes in our asset holdings as we seek to maximize returns and net asset value per share.