Southwestern Energy (NYSE:SWN) Production Growth Estimates Higher

While there are some concerns over Southwestern Energy (NYSE:SWN) in relationship to differences in gas price expectations, it appears production may exceed estimates, helping to overcome potential spending shortfalls.

Barclays (NYSE:BCS) said, "2011 capital budget of $1.9B and production growth guidance of - 18% were $200 mm and 3% higher than forecast. Guidance reflects gas price expectations of $4.50. At our $4 price forecast planned spending could result in a $500MM cash shortfall. Our cap-ex forecast remains $1.7B but we are raising our production forecast 2% ... Received approval by the board to evaluate the possible monetization of its Midstream business...The Fayetteville program will be scaled back further - SWN dropped 3 horizontal rigs in late summer and will release another 2 rigs by YE'11; Expect meaningful operational efficiencies."

Barclays maintains an "Equalweight" rating on Southwestern Energy, which closed Monday at $35.51. Barclays has a price target on them of $35.