8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported)   February 17, 2003
SOUTHWESTERN ENERGY COMPANY
(Exact name of registrant as specified in its charter)
Arkansas	1-8246	71-0205415
(State of incorporation	(Commission	(I.R.S. Employer
or organization)	File Number)	Identification No.)
2350 N. Sam Houston Pkwy. E., Suite 300, Houston, Texas 77032
(Address of principal executive offices, including zip code)
(281) 618-4700
(Registrant's telephone number, including area code)
No Change
(Former name, former address and former fiscal year; if changed since last report)
- 1 -

Item 5.     

Other Events

Southwestern Energy Company announced on February 17, 2003 its fourth quarter results and year-end 2002 financial and operating results.  For additional information see exhibit 99.1.

Southwestern Energy Company announced on February 17, 2003 that it intends to publicly offer and sell 5,500,000 newly issued shares of its common stock. Southwestern also expects to grant the underwriters of the offering an option to purchase up to 825,000 additional shares of common stock to cover over-allotments, if any. Proceeds from the offering will be used to accelerate the development drilling of the Company's Overton Field in East Texas.  For additional information see exhibit 99.2.

Item 7.(c)    

Exhibits

(99.1) Press release dated February 17, 2003, announcing fourth quarter and year-end 2002 financial and operation results.

(99.2) Press release dated February 17, 2003, announcing Southwestern Energy Company's intention to offer common stock under shelf registration statement.

(99.3) Press release dated February 17, 2003, announcing capital program and providing guidance for 2003.

Item 9.

Regulation FD Disclosures

            Southwestern Energy Company is furnishing under Item 9 of this Current Report on Form 8-K the information included as exhibit 99.3 to this report.

Note: The information in this report (including the exhibit) is furnished pursuant to Item 9 and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. This report will not be deemed an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		SOUTHWESTERN ENERGY COMPANY
		Registrant
DATE:	February 18, 2003	BY:	/s/ GREG D. KERLEY
			Greg D. Kerley
			Executive Vice President
			and Chief Financial Officer

Exhibit Index
Exhibit No.	Description
99.1	Press release dated February 17, 2003, announcing fourth quarter and year-end 2002 financial and operating results.
99.2	Press release dated February 17, 2003, announcing Southwestern Energy Company's intention to offer common stock under shelf registration statement.
99.3	Press release dated February 17, 2003, announcing capital program and providing guidance for 2003.

- 2 -

EX-99

EXHIBIT 99.1

2350 N. Sam Houston Parkway East
Suite 300
Houston, Texas 77032
(281) 618-4700 Fax: (281) 618-4820

NEWS RELEASE

SOUTHWESTERN ENERGY ANNOUNCES FOURTH QUARTER AND
YEAR-END 2002 FINANCIAL AND OPERATING RESULTS

        Houston, Texas - February 17, 2003...Southwestern Energy Company (NYSE: SWN) today announced net income for the year ended December 31, 2002 of $14.3 million, or $0.55 per diluted share, compared to $35.3 million or $1.38 per diluted share in 2001. Operating income was $46.5 million and EBITDA⁽¹⁾ was $99.8 million in 2002 compared to $82.7 million and $134.6 million, respectively, in 2001. Our financial results declined in 2002 primarily due to lower realized gas and oil prices and slightly increased operating expenses.

        For the fourth quarter of 2002, Southwestern reported net income of $4.6 million, or $0.17 per diluted share. This compares to net income of $7.4 million, or $0.29 per diluted share, for the same period in 2001. Operating income and EBITDA⁽¹⁾ were $12.8 million and $25.8 million during the fourth quarter of 2002, compared to $17.8 million and $31.8 million in the fourth quarter of 2001. Lower realized gas prices and a decline in production in the Company's E&P segment combined with increased expenses in the utility segment led to the declines. For the fourth quarter of 2002, our revenues decreased by $5.2 million due to our natural gas and crude oil commodity price hedges, including a $1.2 million reduction related to the ineffectiveness of the Company's hedge position at December 31, 2002 recorded pursuant to FAS No. 133. This compares to a revenue increase of $10.5 million from the Company's commodity price hedges in the prior year period.

        "Despite the drop in our earnings due to lower realized oil and gas prices, we had very solid operating results from our E&P segment during 2002," stated Harold M. Korell, President and Chief Executive Officer of Southwestern Energy. "We were able to replace 209% of our 2002 production at a finding cost of $1.02 per Mcfe. Our production for 2002 increased slightly over 2001 levels, despite the production declines we experienced in South Louisiana and the loss of production due to the sale of our Mid-Continent properties in the fourth quarter. Additionally, in November 2002, we set the stage for improved operating results for our utility segment by filing for an $11.0 million

1

rate increase request with the Arkansas Public Service Commission. We expect that any increase granted would become effective in September 2003."

Solid Reserve Replacement at Excellent Finding Costs Highlight E&P Efforts

        As previously reported, the Company replaced 209% of production in 2002 by adding an estimated 83.7 Bcf equivalent (Bcfe) of proved oil and gas reserves at a finding and development cost of $1.02 per Mcfe, excluding reserve revisions. The Company's finding cost, including the effect of net upward reserve revisions due to higher year-end commodity prices, was $0.99 per Mcfe in 2002. For the period ending December 31, 2002, our three-year average reserve replacement ratio was 210% and our three-year average finding and development cost was $1.04 per Mcfe, excluding reserve revisions. Including reserve revisions, these three-year averages were 193% and $1.13 per Mcfe, respectively.

        The Company's proved oil and gas reserves were 415.3 Bcfe at December 31, 2002, as compared to 402.0 Bcfe at the end of 2001. Natural gas comprised 90% of the Company's proved reserves at the end of 2002, and 77% of the Company's reserves were classified as proved, developed.

        Using posted commodity prices in effect at year-end 2002 of $4.74 per Mcf of gas and $31.20 per barrel of oil and adjusted for market differentials, Southwestern's standardized measure of discounted future cash flows relating to proved oil and gas reserves was $501.6 million at December 31, 2002, compared to $308.2 million at the end of 2001. The posted prices in effect at year-end 2001 were $2.65 per Mcf of gas and $19.84 per barrel of oil. The pre-tax discounted value of the Company's oil and gas reserves was $694.1 million at year-end 2002 compared to $394.5 million at the end of 2001.

        Gas and oil production for the three months ended December 31, 2002 was 9.5 Bcfe, compared to 10.0 Bcfe in the third quarter of 2002 and 10.5 Bcfe for the fourth quarter of 2001. The decline from the third quarter relates to the sale of the Company's non-strategic Mid-Continent properties in the fourth quarter of 2002. After adjusting for the sale, production for the fourth quarter would have been equal to the third quarter of 2002. For the year ended December 31, 2002, Southwestern reported production of 40.1 Bcfe, up from 39.8 Bcfe in 2001.

        During the fourth quarter of 2002, our commodity hedges reduced our average realized gas price by $0.52 per Mcf, to $3.33 per Mcf. During the fourth quarter of 2001, the Company's favorable commodity hedge position had the effect of increasing our average realized gas price by

2

$1.09 per Mcf, to $3.50 per Mcf. For the full-year 2002, Southwestern's average gas price was $3.00 per Mcf compared to $3.85 per Mcf in 2001. Our commodity hedging activities lowered our average gas price $0.11 per Mcf in 2002 and $0.31 per Mcf in 2001. Our average oil price was $21.02 per barrel in 2002, compared to $23.55 per barrel in 2001, including the effects of hedges. Our hedging activities lowered our average oil price $2.92 per barrel in 2002 and $0.03 per barrel in 2001.

        We invested a total of $85.2 million in our E&P program and participated in drilling 65 wells during 2002. Of these drilled wells, 45 were successful, 16 were dry and four wells were still in progress at year-end. Our investments were divided between our core areas of operations with $18.2 million invested in the Arkoma Basin, $33.6 million in East Texas, $5.4 million in the Permian Basin and Mid-Continent areas, and $28.0 million in the Gulf Coast. In the Arkoma Basin, the Company participated in 25 wells and 41 workovers which added 18.3 Bcf at a finding and development cost of $0.99 per Mcf. In East Texas, the Company drilled a total of 15 wells at the Overton Field and three wells at South Overton and all 18 wells were successful. The Company added reserves totaling 56.4 Bcfe in this area during 2002 at a finding and development cost of $0.60 per Mcfe.

        In the Gulf Coast region, Southwestern participated in nine wells, of which three were successful. The Company was also active during 2002 in acquiring seismic data to facilitate future exploration in South Louisiana. Southwestern completed its 135-square mile Duck Lake 3-D seismic project located in St. Martin and St. Mary Parishes and is currently interpreting that data for prospects to be drilled later in 2003 and beyond. Southwestern is the operator of this project, holding a 50% working interest.

Utility Operating Income Declines Due to Increased Costs

        Operating income for Southwestern's utility systems was $2.9 million for the three months ended December 31, 2002, down from $4.1 million for the same period in 2001. Operating income for the utility systems was $7.6 million for the year ended December 31, 2002, compared to $10.3 million in 2001. The declines in the utility's operating income were primarily the result of higher insurance and pension expenses incurred during 2002. Weather during calendar 2002 was 2% warmer than normal and 8% colder than the prior year. The utility filed an $11.0 million rate

3

increase request with the Arkansas Public Service Commission in November 2002 and expects that any increase granted would be effective in September 2003.

        Our gas marketing operations added $2.7 million in operating income in both 2002 and 2001. The Company's current marketing and transportation operations relate primarily to the marketing of our own gas production and some third-party gas that is sold primarily to industrial customers connected to our gas distribution systems. During 2002, the Company marketed 45.5 Bcf, down from 49.6 Bcf in 2001.

1. EBITDA is defined as net income plus interest, income tax expense, depreciation, depletion and amortization. Southwestern has included information concerning EBITDA because it is used by certain investors as a measure of the ability of a company to service or incur indebtedness and because it is a financial measure commonly used in the energy industry. EBITDA should not be considered in isolation or as a substitute for net income, net cash provided by operating activities or other income or cash flow data prepared in accordance with generally accepted accounting principles or as a measure of the Company's profitability or liquidity. EBITDA as defined above may not be comparable to similarly titled measures of other companies. The Company believes that operating income is the financial measure calculated and presented in accordance with generally accepted accounting principles that is most directly comparable to EBITDA as defined. The table below reconciles EBITDA with operating income as derived from the Company's financial information.

	4th Quarter		Fiscal Year
	2002	2001	2002	2001
Operating income	$  12,772	$  17,792	$  46,505	$   82,669
Depreciation, depletion and amortization	13,273	14,901	55,352	53,641
Other income (expense)	32	(637)	(566)	(799)
Minority interest	(326)	(285)	(1,454)	(930)
EBITDA	$  25,751	$  31,771	$  99,837	$ 134,581

        Southwestern's management will host a teleconference call on Tuesday, February 18, at 10:00 a.m. EST to discuss the Company's fourth quarter and year-end 2002 results. The toll-free number to call is 800-289-0572 and the reservation number is 462898. The teleconference can also be heard "live" over the Internet 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 Company is an integrated natural gas company whose wholly-owned subsidiaries are engaged in oil and gas exploration and production, natural gas gathering, transmission, and marketing, and natural gas distribution. Additional information on the Company can be found on the Internet at http://www.swn.com.

Contacts: Greg D. Kerley
Executive Vice President
and Chief Financial Officer
(281) 618-4803 Brad D. Sylvester, CFA
Manager, Investor Relations
(281) 618-4897

4

        All statements, other than historical financial information, may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include, but are not limited to, the timing and extent of changes in commodity prices for gas and oil, the timing and extent of the Company's success in discovering, developing, producing, and estimating reserves, property acquisition or divestiture activities that may occur, the effects of weather and regulation on the Company's gas distribution segment, increased competition, legal and economic factors, governmental regulation, the financial impact of accounting regulations and critical accounting policies, changing market conditions, the comparative cost of alternative fuels, conditions in capital markets and changes in interest rates, availability of oil field services, drilling rigs, and other equipment, as well as various other factors beyond the Company's control, and any other factors listed in the reports the Company has filed with the Securities and Exchange Commission. A discussion of these and other factors affecting the Company's performance 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, 2002 that will be filed on February 18, 2003.

Financial Summary Follows

# # #

5

OPERATING STATISTICS				Page 1 of 5
Southwestern Energy Company and Subsidiaries
	Three Months
	(unaudited)		Twelve Months
Periods Ended December 31	2002	2001	2002		2001
Exploration & Production
Production
Affiliated gas sales (MMcf)	1,515	1,419	5,390		5,075
Unaffiliated gas sales (MMcf)	7,127	7,960	30,582		30,402
Total gas production (MMcf)	8,642	9,379	35,972		35,477
Oil Production (MBbls)	139	184	682		719
Total equivalent production (MMcfe)	9,476	10,483	40,064		39,791
Commodity Prices
Average realized gas price per Mcf	$3.33	$3.50	$3.00		$3.85
Average realized oil price per Bbl	$21.61	$20.28	$21.02		$23.55
Operating Expenses per Mcfe
Lease operating expenses	$0.50	$0.45	$0.45		$0.45
Taxes, other than income taxes	$0.25	$0.12	$0.19		$0.17
General and administrative expenses	$0.49	$0.39	$0.32		$0.34
Full cost pool amortization	$1.17	$1.20	$1.16		$1.14
Marketing
Gas volumes marketed (MMcf)	9,329	12,726	45,550		49,603
Gas Distribution
Deliveries (Bcf)
Sales volumes	5.6	5.0	16.7		17.0
End-use transportation	2.3	1.9	8.4		7.0
Off-system transportation	0.2	0.5	2.2		3.1
Total deliveries	8.1	7.4	27.3		27.1
Average number of customers	134,807	134,446	136,747		134,041
Average sales rate per Mcf	$8.39	$6.13	$6.49		$8.26
Heating weather - degree days	1,659	1,276	3,950		3,654
- percent of normal	109%	84%	98%		91%

STATEMENTS OF OPERATIONS				Page 2 of 5
Southwestern Energy Company and Subsidiaries
	Three Months
	(unaudited)		Twelve Months
Periods Ended December 31	2002	2001	2002		2001
	($ in thousands, except per share amount)
Operating Revenues
Gas Sales	$    57,860	$    59,419	$  198,108		$  248,952
Gas Marketing	9,761	7,735	41,709		71,839
Oil Sales	3,013	3,740	14,340		16,932
Gas transportation and other	2,115	1,485	7,345		7,204
	72,749	72,379	261,502		344,927
Operating Costs and Expenses
Gas purchases - utility	16,618	13,544	48,388		68,161
Gas purchases - marketing	8,513	6,912	37,927		68,010
Operating expenses	9,862	9,920	38,154		39,035
General and administrative expenses	9,095	7,617	26,446		25,073
Depreciation, depletion and amortization	12,931	14,744	53,992		52,899
Taxes, other than income taxes	2,958	1,850	10,090		9,080
	59,977	54,587	214,997		262,258
Operating Income	12,772	17,792	46,505		82,669
Interest Expense
Interest on long-term debt	5,455	5,362	21,664		23,920
Other interest charges	340	365	1,285		1,374
Interest capitalized	(468)	(360)	(1,483)		(1,595)
	5,327	5,367	21,466		23,699
Other Income (Expenses)	32	(637)	(566)		(799)
Income Before Income Taxes & Minority Interest	7,477	11,788	24,473		58,171
Minority Interest in Partnership	(326)	(285)	(1,454)		(930)
Income Before Income Taxes	7,151	11,503	23,019		57,241
Provision for Income Taxes
Current	-	-	-		-
Deferred	2,599	4,079	8,708		21,917
	2,599	4,079	8,708		21,917
Net Income	$      4,552	$      7,424	$      14,311		$    35,324
Earnings Per Share:
Basic	$0.18	$0.29	$0.57		$1.40
Diluted	$0.17	$0.29	$0.55		$1.38
Weighted Average Common Shares Outstanding:
Basic	25,326,358	25,224,894	25,226,580		25,198,105
Diluted	26,117,878	25,629,385	26,052,238		25,601,110

BALANCE SHEETS			Page 3 of 5
Southwestern Energy Company and Subsidiaries
December 31	2002		2001
	($ in thousands)
ASSETS
Current Assets	$      76,138	(1)	$      93,204	(1)
Investments	15,287		15,538
Property, Plant and Equipment, at cost	1,291,559		1,225,620
Less: Accumulated depreciation, depletion and amortization	659,398		605,790
	632,161		619,830
Other Assets	16,576		14,551	(1)
	$     740,162		$    743,123
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities	$      74,557	(2)	$      71,468	(2)
Long-Term Debt	342,400		350,000
Deferred Income Taxes	116,591		122,381
Other Liabilities	16,671	(2)	3,187	(2)
Commitments and Contingencies
Minority Interest in Partnership	12,455		13,001
Shareholders' Equity
Common stock, $.10 par value; authorized 75,000,000 shares,
issued 27,738,084 shares	2,774		2,774
Additional paid-in capital	19,130		19,764
Retained earnings	197,988		183,677
Accumulated other comprehensive income (loss)	(17,358)	(3)	5,763	(3)
	202,534		211,978
Less: Common stock in treasury, at cost, 1,793,456 shares in 2002
and 2,261,766 shares in 2001	19,981		25,196
Unamortized cost of restricted shares issued under stock incentive
plans, 498,123 shares in 2002 and 416,537 shares in 2001	5,065		3,696
	177,488		183,086
	$    740,162		$    743,123
(1) Currents assets include $3.1 million in 2002 and$15.2 million in 2001, and other assets include $1.0 million in 2001, related to the Company's hedging activities.  These amounts were recorded under the provisions of SFAS No. 133.
(2) Current liabilities include $23.5 million in 2002 and $7.0 million in 2001, and other liabilities include $3.6 million in 2002 and $.1 million in 2001 related to the Company's hedging activities. These amounts were recorded under the provisions of SFAS No. 133.
(3) Accumulated other comprehensive income (loss) includes a loss of $14.0 million in 2002 and income of $5.8 million in 2001 for the Company's net of tax position of its cash flow commodity price and interest rate hedges required to be recorded under the provisions of SFAS No. 133. A loss of $3.4 million was also recorded in 2002 related to the Company's pension plan.

STATEMENTS OF CASH FLOWS		Page 4 of 5
Southwestern Energy Company and Subsidiaries
	Twelve Months
Periods Ended December 31	2002	2001
	($ in thousands)
Cash Flows From Operating Activities
Net Income	$      14,311	$      35,324
Adjustments to reconcile net income to net cash   provided by operating activities:
Depreciation, depletion and amortization	56,399	54,505
Deferred income taxes	8,708	21,917
Ineffectiveness of cash flow hedges	1,121	-
Equity in loss of NOARK partnership	251	1,484
Minority interest in partnership	(1,015)	(533)
Change in assets and liabilities	(2,201)	31,886
Net cash provided by operating activities	77,574	144,583
Cash Flows From Investing Activities
Capital expenditures	(92,062)	(106,060)
Sale of natural gas and oil properties	26,415	-
Investment in NOARK partnership	-	(1,449)
Increase in gas stored underground	(349)	(4,179)
Other items	1,527	826
Net cash used in investing activities	(64,469)	(110,862)
Cash Flow From Financing Activities
Payments on revolving long-term debt	(204,100)	(248,500)
Borrowings under revolving long-term debt	196,500	202,500
Change in bank drafts outstanding	(9,880)	-
Proceeds from exercise of common stock options	1,955	-
Contributions from minority interest owner in partnership	469	13,534
Net cash used in financing activities	(15,056)	(32,466)
Increase (decrease) in cash	(1,951)	1,255
Cash at beginning of year	3,641	2,386
Cash at end of year	$         1,690	$         3,641

SEGMENT INFORMATION							Page 5 of 5
Southwestern Energy Company and Subsidiaries
	Exploration				Marketing,
	and		Gas		Transportation
	Production		Distribution		and Other	Eliminations		Total
				($ in thousands)
Quarter Ending December 31, 2002 (unaudited)
Revenues	$   32,046		$   37,447		$      32,906	$  (29,650)		$   72,749
Gas purchases	-		23,078		31,547	(29,494)		25,131
Operating expenses	4,757		5,142		-	(37)		9,862
General and administrative expenses	4,644		4,269		358	(176)		9,095
Depreciation, depletion and amortization	11,301		1,555		75	-		12,931
Taxes, other than income taxes	2,394		542		22	-		2,958
Operating Income	$     8,950		$     2,861		$         904	$          57		$   12,772
Capital Investments	$   21,807		$     1,906		$         520	$             -		$   24,233
Quarter Ending December 31, 2001 (unaudited)
Revenues	$   36,419		$   32,239		$     28,297	$  (24,576)		$   72,379
Gas purchases	-		17,522		27,362	(24,428)		20,456
Operating expenses	4,763		5,188		-	(31)		9,920
General and administrative expenses	4,132		3,327		329	(171)		7,617
Depreciation, depletion and amortization	13,101		1,559		84	-		14,744
Taxes, other than income taxes	1,256		571		23	-		1,850
Operating Income	$   13,167		$     4,072		$          499	$          54		$   17,792
Capital Investments	$   25,461		$     2,034		$       1,422	$            -		$   28,917
Twelve Months Ending December 31, 2002
Revenues	$ 122,207		$ 115,850		$   131,514	$(108,069)		$ 261,502
Gas purchases	-		66,486		127,285	(107,456)		86,315
Operating expenses	17,944		20,349		-	(139)		38,154
General and administrative expenses	12,806		13,008		1,163	(531)		26,446
Depreciation, depletion and amortization	47,680		6,115		197	-		53,992
Taxes, other than income taxes	7,729		2,329		32	-		10,090
Operating Income	$   36,048		$     7,563		$       2,837	$          57		$   46,505
Capital Investments	$   85,201	(1)	$     6,115		$          746	$             -		$   92,062
Twelve Months Ending December 31, 2001
Revenues	$ 153,937		$ 147,282		$   190,773	$(147,065)		$ 344,927
Gas purchases	-		96,058		186,496	(146,383)		136,171
Operating expenses	17,790		21,445		-	(200)		39,035
General and administrative expenses	13,607		10,941		1,061	(536)		25,073
Depreciation, depletion and amortization	46,530		6,163		206	-		52,899
Taxes, other than income taxes	6,670		2,329		81	-		9,080
Operating Income	$   69,340		$   10,346		$       2,929	$          54		$   82,669
Capital Investments	$   98,964	(1)	$     5,347		$       1,749	$            -		$ 106,060
(1) Includes $.5 million in 2002 and $13.5 million in 2001 of expenditures funded by minority interest owner in partnership.

EX-99

EXHIBIT 99.2

2350 N. Sam Houston Parkway East
Suite 300
Houston, Texas 77032
(281) 618-4700 Fax: (281) 618-4820

NEWS RELEASE

SOUTHWESTERN ENERGY ANNOUNCES INTENTION TO OFFER COMMON STOCK UNDER SHELF REGISTRATION STATEMENT

Houston, Texas - February 17, 2003...Southwestern Energy Company (NYSE: SWN) announced today that it intends to publicly offer and sell 5,500,000 newly issued shares of its common stock. Southwestern also expects to grant the underwriters of the offering an option to purchase up to 825,000 additional shares of common stock to cover over-allotments, if any. Proceeds from the offering will be used to accelerate the development drilling of the Company's Overton Field in East Texas.

The shares will be issued pursuant to a shelf registration statement that was previously filed and declared effective. This press release shall not constitute an offer to sell or a solicitation of an offer to buy shares of Southwestern common stock. An offering of shares of Southwestern common stock will be made only by means of a prospectus. The prospectus shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Southwestern Energy Company is an integrated natural gas company whose wholly-owned subsidiaries are engaged in oil and gas exploration and production, natural gas gathering, transmission, and marketing, and natural gas distribution. Additional information on the Company can be found on the Internet at http://www.swn.com.

Contacts: Greg D. Kerley
Executive Vice President
and Chief Financial Officer
(281) 618-4803 Brad D. Sylvester, CFA
Manager, Investor Relations
(281) 618-4897

# # #

EX-99

EXHIBIT 99.3

2350 N. Sam Houston Parkway East
Suite 300
Houston, Texas 77032
(281) 618-4700 Fax: (281) 618-4820

NEWS RELEASE

SOUTHWESTERN ENERGY ANNOUNCES CAPITAL PROGRAM
AND PROVIDES GUIDANCE FOR 2003

2003 Capital Budget for E&P Segment Rises 60%
to Accelerate Development of Overton Field

Houston, Texas - February 17, 2003...Southwestern Energy Company (NYSE: SWN) announced today a planned capital investment program for 2003 for its exploration and production (E&P) segment of $137.1 million, an increase of over 60% from the $85.2 million invested in 2002. The increased capital program is expected to be partly funded by the Company's planned common stock offering announced earlier today, with the net proceeds from the offering to be used to accelerate the development drilling of the Company's Overton Field properties in East Texas. It is expected that a total of $78.0 million will be invested in East Texas during 2003. Southwestern also intends to invest $7.7 million for improvements to its utility systems and $0.8 million for other corporate purposes, for a total planned capital investment of $145.6 million in 2003 (as compared to total capital investments of $92.1 million invested in 2002).

"Our results at Overton have been very positive over the past two years," stated Harold M. Korell, President and Chief Executive Officer of Southwestern Energy. "During that time, we have drilled a total of 33 wells in the Overton Field area with a 100% success rate. Daily gross production at the Overton Field has increased from 2.0 MMcfe per day in March 2001 to approximately 27.0 MMcfe per day at year-end 2002, resulting in net production of 5.9 Bcfe during 2002. The Company's proved reserves at the Overton Field increased to 111.0 Bcfe at year-end 2002, up from 57.6 Bcfe at year-end 2001 and 22.0 Bcfe at year-end 2000. Southwestern invested $33.6 million in the Overton Field area during 2002 and recorded proved reserve additions of 56.4 Bcfe with a finding and development cost of $0.60 per Mcfe, compared to a finding and development cost of $0.82 per Mcfe in 2001.

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We believe that the acceleration of the field's development will provide us with substantial growth in production and reserves over the next few years. Continued downspacing should allow us to drill approximately 100 additional wells in the area over the next two years. We intend to invest approximately $78.0 million in East Texas during 2003, which includes drilling up to 47 new wells using four drilling rigs at the Overton Field. Our average working interest in the Overton Field is 97% and average net revenue interest is 79%.

In 2003, over 80% of our capital is allocated to the drillbit, with the vast majority directed toward lower-risk development drilling in East Texas ($78.0 million) and in the Arkoma Basin ($22.6 million). The remainder of our E&P capital will be allocated to exploration and exploitation in the Permian Basin ($4.8 million) and South Louisiana ($21.7 million) and to new projects ($10.0 million)."

Southwestern plans to drill approximately 95 wells in 2003, compared to 65 wells drilled in 2002. Approximately two-thirds of those wells are low-risk development prospects located in the Arkoma Basin (30 wells and 60 workover projects) and in the Overton Field in East Texas (47 wells). The Company plans to participate in up to eight wells in the Gulf Coast and nine wells in the Permian Basin in 2003.

The foregoing statements regarding the planned capital investments for the year 2003 are considered to be forward-looking statements and the Company's actual capital investments could differ materially from those projected as a result of certain factors listed at the end of this press release.

Southwestern Issues Guidance for 2003

The following statements regarding estimates for the year 2003 are considered to be forward-looking statements and the Company's actual financial and operating results could differ materially from those projected as a result of certain factors listed at the end of this press release. Further, these projections do not reflect the potential impact of unknown events that may occur subsequent to this press release. The following forward-looking statements assume the full implementation of the Company's planned capital program for 2003, including the consummation of the aforementioned common stock offering.

Southwestern is targeting 2003 oil and gas production at 42 - 44 Bcfe, an increase of 5 - 10 percent over 2002 production levels. These projections for production growth in 2003 take into

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account the effect of the sale of the Company's Mid-Continent properties in 2002, which produced 2.5 Bcfe annually. Assuming NYMEX commodity prices of $4.25 per Mcf of gas and $24.50 per barrel of oil for 2003, the Company is targeting 2003 net income of $33 - $36 million, up from $14.3 million in 2002. The Company expects its operating income to approximate $77 - $80 million and its net income plus interest, income tax expense, depreciation, depletion and amortization (also known as EBITDA⁽¹⁾) to be approximately $135 - $138 million.

The Company's differential for the average price received for its gas production is expected to be approximately $0.10 - $0.20 per Mcf below the NYMEX Henry Hub index price during 2003, excluding the impact of hedges. The Company's differential for the average price received for its oil production is expected to be approximately $1.25 per barrel below the West Texas Intermediate (WTI) crude oil price, excluding the impact of hedges. Southwestern currently has 30.4 Bcf of its gas production hedged in 2003 through a combination of fixed-price swaps and collars. The table below provides a detailed description of the Company's hedge position in 2003. Additionally, the Company has 340,000 barrels of oil hedged at an average WTI price of $26.58 per barrel in 2003. Southwestern's complete hedge position is also detailed in its Form 10-K for the year ending December 31, 2002 which will be filed on February 18, 2003 with the Securities and Exchange Commission.

The Company projects its gross margin from its utility segment (revenues less gas purchases) to approximate $50 - $55 million and the segment's operating income is expected to increase to approximately $7 - $9 million assuming normal weather. The utility filed an $11.0 million rate increase request with the Arkansas Public Service Commission in November 2002 and expects that any increase granted would be effective in September 2003.

With regard to other income and expenses, the Company's gas marketing segment is expected to generate approximately $2.0 - $2.5 million in operating income in 2003. The Company expects its total general and administrative expense to increase approximately $7.0 - $8.0 million in 2003, primarily due to increased pension, insurance and payroll costs (the Company expects to record pension expense of $3.0 - $5.0 million in 2003 compared to $0.9 million in 2002). The Company's net interest expense for the year is expected to be $18.0 - $20.0 million. Income taxes in 2003 are estimated at 38.0% and all are assumed to be deferred.

Assuming NYMEX commodity prices for 2003 of $4.25 per Mcf of gas and $24.50 per barrel of oil, the Company's projected results for 2003 are as follows:

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Estimated Production

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Full-Year 2003
Estimated Production:
Gas (Bcf)	8.0 - 9.0	9.0 - 10.0	10.0 - 11.0	10.5 - 11.5	37.5 - 41.5
Oil (MBbls)	110 - 120	120 - 130	130 - 140	130 - 140	490 - 530
Total Production (Bcfe)	8.5 - 9.5	10.0 - 11.0	10.5 - 11.5	11.0 - 12.0	42.0 - 44.0

Gas Hedges in Place for 2003

		Weighted Avg. NYMEX Price
Swaps	Volumes (Bcf)	(per MMBtu)
1st Quarter	3.77	$3.59
2nd Quarter	3.43	$3.42
3rd Quarter	3.15	$3.42
4th Quarter	2.95	$3.42
		NYMEX Floor Price	NYMEX Ceiling Price
Collars	Volumes (Bcf)	(per MMBtu)	(per MMBtu)
1st Quarter	1.02	$3.00	$4.65
	1.00	$3.00	$4.75
	1.50	$3.25	$5.05
2nd Quarter	1.02	$3.00	$4.65
	1.00	$3.00	$4.75
	1.50	$3.25	$5.05
	1.00	$4.00	$5.85
3rd Quarter	1.02	$3.00	$4.65
	1.00	$3.00	$4.75
	1.50	$3.25	$5.05
	1.00	$4.00	$5.85
4th Quarter	1.02	$3.00	$4.65
	1.00	$3.00	$4.75
	1.50	$3.25	$5.05
	1.00	$4.00	$6.20

Oil Hedges in Place for 2003

		Weighted Avg. NYMEX Price
Swaps	Volumes (Bbls)	(per Bbl)
1st Quarter	70,000	$25.97
2nd Quarter	90,000	$26.73
3rd Quarter	90,000	$26.73
4th Quarter	90,000	$26.73

FY 2003
Projected

E&P Operating Expenses per Mcfe

Lease Operating Expenses	$0.31 - $0.35
Taxes, Other Than Income Taxes	$0.24 - $0.28
General & Administrative Expense	$0.38 - $0.42
Full Cost Pool Amortization Rate (2)	$1.14 - $1.18

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Other Operating Income and Expenses

Utility Operating Income ($ MM)	$7.0 - $9.0
Marketing Operating Income ($ MM)	$2.0 - $2.5
Other Non-Operating Loss ($ MM)	$0.0 - $0.5
Minority Interest Deduction ($ MM)	$1.0 - $2.0
Net Interest Expense ($ MM)	$18.0 - $20.0
Income Tax Rate (100% Deferred)	38.0%

The following table demonstrates different NYMEX price scenarios and their corresponding estimated impact on the Company's results for 2003, including current hedges in place:

NYMEX Commodity Prices	Earnings	Operating Income	EBITDA(1)
$3.50 Gas $22.00 Oil	$23 - $26 Million	$60 - $63 Million	$118 - $121 Million
$4.25 Gas $24.50 Oil	$33 - $36 Million	$77 - $80 Million	$135 - $138 Million
$5.00 Gas $28.00 Oil	$46 - $49 Million	$97 - $100 Million	$155 - $158 Million

1. EBITDA is defined as net income plus interest, income tax expense, depreciation, depletion and amortization. Southwestern has included information concerning EBITDA because it is used by certain investors as a measure of the ability of a company to service or incur indebtedness and because it is a financial measure commonly used in the energy industry. EBITDA should not be considered in isolation or as a substitute for net income, net cash provided by operating activities or other income or cash flow data prepared in accordance with generally accepted accounting principles or as a measure of the Company's profitability or liquidity. EBITDA as defined above may not be comparable to similarly titled measures of other companies. The Company believes that operating income is the financial measure calculated and presented in accordance with generally accepted accounting principles that is most directly comparable to EBITDA as defined. Please refer to "Business - Other Items - Reconciliation of Non-GAAP Measures" in Item 1 of Part 1 of the Company's Form 10-K for the year ended December 31, 2002 which will be filed on February 18, 2003 for an example of how EBITDA is reconciled to the Company's operating income as derived from its audited financial information.
2. The Company's full cost pool amortization rate can vary from this estimate due to changes in the level of oil and gas reserves and changes in the levels of unevaluated costs.

Southwestern also issued press releases earlier today regarding financial and operating results for 2002 and to announce its intention to publicly offer common stock pursuant to an effective shelf registration statement. Additionally, the Company's management will host a teleconference call on Tuesday, February 18, at 10:00 a.m. EST to discuss the Company's fourth quarter and year-end 2002 results and its outlook for 2003. The toll-free number to call is 800-289-0572 and the reservation number is 462898. The teleconference can also be heard "live" over the Internet 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.

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Southwestern Energy Company is an integrated natural gas company whose wholly-owned subsidiaries are engaged in oil and gas exploration and production, natural gas gathering, transmission, and marketing, and natural gas distribution. Additional information on the Company can be found on the Internet at http://www.swn.com.

Contacts: Greg D. Kerley
Executive Vice President
and Chief Financial Officer
(281) 618-4803 Brad D. Sylvester, CFA
Manager, Investor Relations
(281) 618-4897

All statements, other than historical financial information, may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include, but are not limited to, the timing and extent of changes in commodity prices for gas and oil, the timing and extent of the Company's success in discovering, developing, producing, and estimating reserves, property acquisition or divestiture activities that may occur, the effects of weather and regulation on the Company's gas distribution segment, increased competition, legal and economic factors, governmental regulation, the financial impact of accounting regulations and critical accounting policies, changing market conditions, the comparative cost of alternative fuels, conditions in capital markets and changes in interest rates, availability of oil field services, drilling rigs, and other equipment, as well as various other factors beyond the Company's control, and any other factors listed in the reports the Company has filed with the Securities and Exchange Commission. A discussion of these and other factors affecting the Company's performance 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, 2002 that will be filed on February 18, 2003.

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