Haynesville Core Operations and ESG Overview
Explanation and Reconciliation of Non-GAAP
Financial Measures: Net debt / Adj. EBITDA
Swn
Southwestern EnergyⓇ
Net debt is defined as short-term debt plus long-term debt, less cash and cash equivalents. Adjusted EBITDA is defined as net
income (loss) plus interest, income tax expense, depreciation, depletion and amortization, expenses associated with
restructuring charges, impairments, legal settlements, merger-related expenses, less gains (losses) on unsettled derivatives,
gains (losses) on sale of assets and gains on early extinguishment of debt over the prior 12 month period. Southwestern has
included information concerning Net debt / Adjusted 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. Net
debt / Adjusted 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 GAAP or as a measure of the Company's profitability or
liquidity. Net debt / Adjusted EBITDA, as defined above, may not be comparable to similarly titled measures of other companies.
The table below reconciles historical Adjusted EBITDA with historical net income (loss).
March 31,
2023
Dec 31,
2022
Total debt (1)
$
($ in millions)
3,953 $
4,414
Net income (loss)
Q1 2022
Q2 2022
$ (2,675)
$ 1,173
Adjusted EBITDA
Q3 2022
($ in millions)
$ 450
Q4 2022
Q1 2023
$ 2,901
$ 1,939
Subtract:
Add back (deduct):
Cash and cash equivalents
Net debt
$
(3)
3,950
(50)
Interest expense
41
48
50
45
$
4,364
Income tax expense
4
Depreciation, depletion and amortization
Merger-related expenses
275
25
Net Debt/LTM Adjusted EBITDA
Q1 2023
Q4 2022
$
3,950 $
4,364
(Gain) loss on unsettled derivatives
Loss on early extinguishment of debt
Other
3,232
2
ཆུནྣ་ྒུསམྨུ་
33
11
10
12
298
313
313
(722)
14
(2,548)
(1,524)
8
19
-
1
3
3
Net debt
$
3,950
$
4,364
Adjusted EBITDA
3,177
3,283
Stock-based compensation
Adjusted EBITDA
1
2
1
1
$
905
$
822
$
824
$
732
$
799
Cash and cash equivalents
Net debt/LTM Adjusted EBITDA
1.2x
1.3x
1) Total debt does not include unamortized debt discount and issuance expense.
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