Dear Fellow Shareholders,

Increased Globalization and Complexity

Last year highlighted the important role that natural gas plays as a source of energy necessary for maintaining quality of life and improving living standards around the world. Geopolitical events in 2022 also underscored the long-term importance of strategically located natural gas reserves, while, more broadly, natural gas markets revealed structural changes that have resulted in increased complexity and volatility in the global natural gas market.

Europe’s critical need for secure natural gas supplies and the increased linkage of US natural gas to international markets via LNG led to extreme upward volatility in North American natural gas prices. High prices encouraged drilling and the current supply overhang leading to the difficult environment the industry is experiencing today. Southwestern Energy remains well positioned in this environment with natural gas assets located in low-cost basins and sufficient transportation. Your Board is focused on managing risk and maintaining shareholder value during what may be a challenging year in 2023.

Beyond 2023, US natural gas is poised to gain increasing access to international markets and pricing points via LNG and become a truly globally linked commodity similar to crude oil. Southwestern Energy’s direct access to the LNG corridor combined with the quality and depth of its 15-year core inventory and transportation portfolio represents a differentiated competitive advantage. At 1.5 Bcf per day, Southwestern Energy already sells the largest volume of natural gas directly to LNG exporters and does so at premium pricing relative to other domestic basins. Going forward, Southwestern Energy stands to benefit from the anticipated uplift in domestic natural gas prices as additional LNG facilities come online and contribute to the convergence of domestic and global gas prices. The Board and management will continue to take a prudent and balanced approach as we diligently evaluate options to further optimize Southwestern’s assets in the evolving global market for natural gas and LNG.

The increased complexity and volatility of the North American natural gas market poses challenges for board oversight. As always, generating and maintaining shareholder value will continue to guide the Board’s risk management oversight as SWN’s hedging strategy evolves and is informed by these risks.


In tandem with the Company’s long history of environmental leadership, oversight of ESG remains a key focus of your Board with responsibilities shared amongst the appropriate committees. In 2022, the Health, Safety, Environment and Corporate Responsibility Committee oversaw the thorough analysis and commitment to a long-term goal to reduce scope 1 greenhouse gas emissions by 50% by 2035 setting the Company on a path to achieve net zero emissions by 2050. Further details are available in the Company’s Corporate Responsibility Report available at

Board Diversity and Refreshment

As we address the challenges of increased global complexity and volatility, the Board’s Nominating and Governance Committee recognizes the importance of ensuring the right mix of directors with the appropriate balance of skills, tenure, perspectives, and backgrounds to meet these challenges. We invite you to read the skills matrix on page [##] of the proxy for additional details, and we look forward to sharing more as we continue to refresh the Board. Diversity remains a key commitment at Southwestern Energy with the Board’s diversity currently stands at 44% (2 women, 1 Native American, and 1 French national), and your Board actively seeks out women and other diverse candidates to include for consideration.

As we look forward in 2023 and beyond, the Board extends its gratitude to the people of Southwestern Energy. Through their commitment and dedication, the Company continues to build momentum in unlocking the value of its assets and generating shareholder value.

On behalf of the entire Board, thank you for your continued investment and support.


Catherine A. Kehr
Chairman of the Board