NEWS RELEASE                                For Further Information Contact:
                                                  Greg D. Kerley
                                                  Executive Vice President
                                                    and Chief Financial Officer
                                                  (501) 521-1141




             ARKANSAS SUPREME COURT AFFIRMS LOWER COURT DECISION IN
                       SOUTHWESTERN ENERGY COMPANY APPEAL

     Southwestern Will Pay Settlement and Raise Cash Through Sales of Assets

         FAYETTEVILLE,  ARKANSAS - June 22,  2000...Southwestern  Energy Company
(NYSE: SWN) today announced the Arkansas Supreme Court today has ruled to affirm
the 1998 decision of a Sebastian  County  Circuit Court  awarding more than $109
million  in a class  action to royalty  owners of SEECO,  Inc.,  a  wholly-owned
Southwestern Energy subsidiary.
         While this decision was not expected by  Southwestern,  the Company had
prepared for the outcome  including  posting a $109  million  bond  supported by
letters of credit from the Company's lead lending institutions.
         "Southwestern is disappointed at the Supreme Court Decision.  It is not
the  outcome  we had  anticipated.  It will take some time to recoup the cost of
this  judgment and will involve the  disposition  of some Company  assets," said
Harold Korell, Southwestern President and Chief Executive Officer. "Fortunately,
Southwestern  has the  financial  flexibility  to allow  it the  time to  recoup
settlement  costs and to continue  development  of its quality  exploration  and
production projects."
         In late 1999 and early this  year,  Southwestern  successfully  drilled
exploratory  wells in south  Louisiana  at Gloria and North  Grosbec and has had
continued  success  in its  Arkoma  Basin and  Permian  Basin  investments.  The
exploration successes in south Louisiana are of particular note as they were the
first  prospects in this area developed  in-house by our new  exploration  team.
Southwestern's  full-year  1999 and first quarter 2000 earnings were  consistent
with previous years' levels despite the warmest winter in the Company's history.


                                     -MORE-



         The  Company  said  that  within  the next  few  days it will  disclose
specific  action it will take to fund the  judgment and the near term effects of
the judgment on the financial condition of the Company.
         "Following the Court's decision today, let us be clear, our position is
unchanged. We believe that from the beginning in this matter Southwestern Energy
has acted  honestly  and  responsibly  and has served the best  interests of its
royalty  owners and  utility  customers,  and we will  continue  to do so in the
future," said Mr. Korell.  "Despite the  disappointment of the ruling, we remain
optimistic  about the Company's  future because the outlook for our  exploration
and production operations has never been brighter."
         Southwestern  Energy will  broadcast a conference  call in  conjunction
with this press  release over the  Internet at 12:00 p.m.  EST (11:00 a.m.  CST)
today  at the  Company's  website:  http://www.swn.com.  RealPlayer  8 Basic  is
required to listen to the teleconference and can be downloaded from the website.
         Southwestern   Energy  is  an  integrated  natural  gas  company  whose
wholly-owned subsidiaries are engaged in gas and oil exploration and production,
natural gas gathering,  transmission and marketing and natural gas distribution.
Additional Company information can be accessed at http://www.swn.com.
         All statements,  other than historical financial information,  included
in this press release may be deemed to be forward-looking  statements within the
meaning of the Securities  Litigation  Reform Act. These statements  reflect the
Company's  current  views with  respect to future  events  and  performance  and
involve risks and  uncertainties  that are detailed in the Company's  Securities
and Exchange Commission filings.  These risks would include, but are not limited
to, the timing and extent of the Company's  success in discovering,  developing,
producing and estimating oil and natural gas reserves. Although these statements
are  made  in  good  faith  and  the  Company   believes  they  are   reasonable
representations  of  the  Company's  expected  performance  at  this  time,  the
Company's  actual financial and operating  results could differ  materially from
those projected as a result of certain factors. A discussion of those factors is
included  in the  Company's  periodic  reports  filed  with the  Securities  and
Exchange Commission  including its Annual Report on Form 10-K for the year ended
December 31, 1999.

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