 The company's Midstream Services segment generates revenue through the
marketing of its gas production and some third-party natural gas and
through gathering fees associated with the transportation of natural gas
to market. The company's gas marketing subsidiary, Southwestern Energy
Services Company, was formed to better enable it to capture downstream
opportunities which arise through marketing and transportation activity.
Southwestern's gas gathering subsidiary, DeSoto Gathering Company,
L.L.C., is engaged in gathering activities related to the
development of the company's Fayetteville Shale play. Gathering
revenues and expenses are expected to continue to grow in the future as
gathering systems for the company's Fayetteville Shale play are
constructed to support the development of this play.
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