Southwestern Energy Investor Presentation
Explanation and Reconciliation of Non-GAAP
Financial Measures: Net debt / Adj. EBITDA (Leverage)
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).
June 30,
2023
Dec 31,
2022
Total debt (1)
$
($ in millions)
4,053
$
4,414
Net income (loss)
Subtract:
Add back (deduct):
Cash and cash equivalents
Net debt
$
(25)
4,028
(50)
Interest expense
$
4,364
Income tax expense (benefit)
Net debt
Adjusted EBITDA
Net debt/LTM Adjusted EBITDA
Adjusted EBITDA
Q1 2022
Q2 2022
Q3 2022 Q4 2022
Q1 2023
Q2 2023
($ in millions)
$ (2,675)
$ 1,173
$
450 $ 2,901
$ 1,939
$
231
41
48
50
45
36
34
4
26
11
10
12
(5)
Depreciation, depletion and amortization
Merger-related expenses
275
275
288
298
313
313
328
2
Net Debt/LTM Adjusted EBITDA
Q2 2023
Q4 2022
(Gain) loss on unsettled derivatives
Loss on early extinguishment of debt
Other
3,232
(722)
14
(2,548)
(1,524)
2
4
1
83
19
3
31
(1)
$
4,028
$
4,364
2,839
3,283
Stock-based compensation expense
Adjusted EBITDA
1
2
1
1
4
$
905
$
822
$
824
$ 732 $ 799 $ 484
1.4x
1.3x
1) Total debt does not include unamortized debt discount and issuance expense.
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