Southwestern Energy: Strong Fundamentals

One of my favorite energy stocks is Southwestern Energy (SWN). The company is due to report earnings next week. Bloomberg recently profiled some upcoming earnings reports and they quoted Shawn Price, one of my top analysts.

“Southwestern Energy, an oil and gas explorer based in Houston, reports fourth-quarter results on Feb. 26. The company quadrupled net income in the third quarter after increasing production 76 percent. The stock climbed 12 percent this year, compared with a 3.9 percent drop for the S&P 500 Energy Index, and was the only company in its industry that rose in 2008.

“It’s rare to find somebody with fundamentals that strong,” said Shawn Price, who manages $2.7 billion at Navellier & Associates Inc. in Reno, Nevada, and bought Southwestern shares last month. “Looking for positive sales growth and positive earnings, it gets real limited real fast.”

“Price said the computer programs he uses to find stocks for his quantitative fund, which purchases companies with improving earnings, are showing the fewest names in his 18-year career.

“Right now it’s just decimation across the board,” he said. “The ones that do pop up are definitely getting a higher weight than they used to in the portfolio. We’re trying to separate the quality from the speculation.”

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