Southwestern Energy Company

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Southwestern Energy's third quarter 2022 earnings call. Management will open the call for a question and answer session following prepared remarks. In the interest of time, please limit yourself to two questions and re-queue for additional questions. This call is being recorded. I will now turn the call over to Brittany Rayford, Southwestern Energy's Director of Investor Relations. You may begin.

Thank you, Chad. Good morning, and welcome to Southwestern Energy's third quarter 2022 earnings call. Joining me today are Bill Way, President and Chief Executive Officer, Clay Carroll, Chief Operating Officer, and Carl Giesler, Chief Financial Officer. Before we get started, I'd like to point out that many of the comments we make during this call are forward-looking statements that involve risks and uncertainties affecting outcomes. Many of these are beyond our control and are discussed in more detail in the risk factors and the forward-looking statement sections of our annual report and quarterly reports as filed with the Securities and Exchange Commission. Although we believe the expectations expressed are based on reasonable assumptions, they are not guarantees of future performance, and actual results and developments may differ materially, and we are under no obligation to update them. We may also refer to some non-GAAP financial measures, which help facilitate comparisons across periods and with peers. For any non-GAAP measures we use, A reconciliation to the nearest corresponding gap measure can be found in our earnings release available on our website. I will now turn the call over to Bill Way.

Thank you, Brittany, and good morning, everyone. Southwestern Energy's strategic intent is to generate resilient free cash flow from responsible natural gas development of our leading positions in the two premier U.S. natural gas basins. In the third quarter, the company continued to generate free cash flow, which was used to reduce debt and achieve our target leverage range. We also complemented debt reduction with $80 million of share repurchases, bringing our year-to-date total to approximately 10% of the authorized amount. Prioritizing debt reduction as we progress toward our $3.5 billion to $3 billion target debt range benefits shareholders by expanding our opportunity set, including LNG, reducing the volatility of our stock, enhancing the resilience of our free cash flow through the cycle, and supporting our expected return to investment grade. With the current commodity price outlook and our improved balance sheet, that allows us to moderate our hedging levels to provide shareholders greater commodity price exposure while maintaining disciplined enterprise risk management. We expect our lower hedge profile will generate increasing free cash flow, even in this backward-dated commodity price environment. As our hedge position moderates, we anticipate our financial results Key financial metrics and enterprise value will more clearly reflect the underlying value of our business as evidenced by our pre-tax CB10 reserve value of more than $30 billion at recent strip. We believe our integrated upstream marketing and transportation approach to developing our more than 15 years of core inventory is yet another example of capturing the tangible benefits of scale, and in this case, our increased scale. We are well positioned to benefit from the structurally supported long-term Gulf Coast natural gas demand growth. Our well-timed Haynesville acquisitions positioned us as the largest Haynesville producer, giving us scaled production and reserves near the LNG corridor and other growing gas demand centers along the Gulf Coast. Today, SWIN markets up to five BCF per day of gross gas production from Appalachia and Haynesville, of which 65% is transported to the LNG corridor and Gulf Coast. This large-scale dual-basin supply to the Gulf Coast has enabled us to become one of the largest suppliers of natural gas to the LNG sector today. With 1.5 billion cubic feet of sales under Hendry Hub-based agreements, we are assessing further LNG gas supply opportunities to capture advantage pricing on a risk-adjusted approach is to be consistent with the inherently greater price volatility from global gas exposure. Based on this, we plan to target international pricing exposure for up to 500 million cubic feet per day or up to 10% of our overall daily gross gas production. Given the importance of flow assurance and marketing gas optionality, we've secured additional capacity on future takeaway projects to the Gulf Coast. This quarter, we added capacity on Momentum's upcoming NG3 project and further expanded our LEAP capacity. Both projects are expected to be fully serviced by 2024. We believe that with our focus on natural gas, growing access to the global energy markets, and long-term track record of both low-cost and low-emissions operations, the company is well-positioned to help reliably meet domestic and global energy needs and support the foundational role of natural gas in a lower-carbon future. To help realize that future, we are proud to announce the company's long-term GHG emission reduction goal of a 50% decrease by 2035, which is consistent with a path to net zero by 2050. We expect 70% of our forecasted reductions to be achieved through direct operational abatements. This goal aligns with our ESG approach of creating sustainable value through meaningful, impactful actions in the communities where we work and live. This longer-term GHG emission reduction goal supplements our existing programs including being the first and only E&P company to return more fresh water back to the environment than we consume in our business. Shortly, we will release our ninth annual corporate responsibility report, which will detail how we are building on our legacy of responsible development and commitment to ESG as a core value. With an increasing and resilient free cash flow generation profile, a strong balance sheet, near investment-grade credit ratings, and advantaged access to the LNG corridor and other growing demand centers, we believe Southwestern Energy offers a compelling value and differentiated rate of change investment opportunity in a structurally constructive long-term natural gas outlook. I'd like to turn the call over to Clay for some operational updates.