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Southwestern Energy initiated with a Hold at Seibert Williams

Seibert Williams initiated coverage of Southwestern Energy with a Hold rating and $6 price target. Deals have made Southwestern among the largest domestic natural gas producers with critical scale in both Appalachia and the Haynesville shale, but these deals have left the company with above average net-debt/EBITDA leverage and "disadvantaged legacy hedges," said the firm, which thinks Southwestern’s "materially below-average" free cash flow yield will likely result in no capital returns over the next few quarters at current strip prices.

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Published first on TheFly

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