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)   July 29, 2003
SOUTHWESTERN ENERGY COMPANY
(Exact name of registrant as specified in its charter)
Arkansas	1-8246		71-0205415
(State or other jurisdiction	(Commission		(I.R.S. Employer
of incorporation)	File Number)		Identification No.)
2350 N. Sam Houston Pkwy. E., Suite 300, Houston, Texas		77032
(Address of principal executive offices)		(Zip Code)
(281) 618-4700
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
- 1 -

Item 7.(c)    

Exhibits

        (99.1) Press release dated July 29, 2003, announcing financial and operating results for the three and six months ended June 30, 2003, together with management's updated earnings guidance for the balance of the 2003 calendar year.

Item 12.

Results of Operations and Financial Condition

        On July 29, 2003, Southwestern Energy Company announced financial results for its quarter ended June 30, 2003, together with management's updated earnings guidance for the balance of the 2003 calendar year. Such release is being made by press release and by a subsequent telephone conference call on July 30, 2003 that has been announced to, and is broadly accessible by, the public. The press release is furnished with this filing as Exhibit 99.1.

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:	July 29, 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 July 29, 2003, announcing financial and operating results for the three and six months ended June 30, 2003, together with management's updated earnings guidance for the balance of the 2003 calendar year.

- 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 SECOND QUARTER 2003 RESULTS AND
INCREASE IN PLANNED CAPITAL EXPENDITURES

High Commodity Prices Help Drive Record Earnings

            Houston, Texas - - July 29, 2003...Southwestern Energy Company (NYSE: SWN) today reported net income of $9.5 million, or $0.26 per diluted share, for the second quarter of 2003, up from $1.8 million, or $0.07 per share, for the same period in 2002.  Discretionary cash flow⁽¹⁾ was $28.5 million during the second quarter of 2003, compared to $17.4 million in the second quarter of 2002.  The increases in earnings and discretionary cash flow resulted primarily from higher realized gas and oil prices.

            Net income for the six months ended June 30, 2003 was $23.2 million, or $.71 per share, compared to $8.5 million, or $.33 per share, for the same period in 2002.  Discretionary cash flow was $65.2 million for the first six months of 2003, compared to $43.3 million for the same period of 2002.

"Our operating plan for 2003 has gone very well through the first six months," stated Harold M. Korell, President and Chief Executive Officer of Southwestern Energy.  "We are beginning to see the impact of our Overton Field drilling program in our production volumes and look for this production growth to continue throughout the remainder of the year.  We have also had solid results in our drilling program in the Arkoma Basin, particularly in our Ranger Anticline area.  As a result of our strong cash flow and drilling results, we are increasing the capital budget for our E&P program from $150.0 million to $165.0 million, bringing our total planned expenditures to $173.6 million for 2003.  The planned increase is primarily directed toward additional drilling in the Arkoma Basin and at our Overton Field."

Higher Commodity Prices and Production Levels Highlight Quarter

Operating income for the company's exploration and production segment was $21.5 million for the three months ended June 30, 2003, up from $10.1 million for the same period in 2002.  The increase in operating income primarily resulted from higher gas and oil prices. 

Gas and oil production for the three months ended March 31, 2003 was 10.1 Bcfe, up 14% from 8.9 Bcfe produced during the first quarter of 2003. Southwestern produced 10.3 Bcfe in the second quarter of 2002.  The company's third quarter 2003 production target is 10.5 - 11.5 Bcfe and its 2003 full-year oil and gas production target is 42 - 44 Bcfe, compared to 40.1 Bcfe produced during 2002.

Gas prices realized for the company's production averaged $4.28 per Mcf for the quarter and $4.22 per Mcf for the first half of 2003, up 45% and 48%, respectively, from the same periods in 2002.  The company realized an average price of $27.54 per barrel for its oil production during the six months ended June 30, 2003, compared to $20.10 per barrel for the same period of 2002. 

The company's commodity hedging activities lowered its average gas price by $.86 per Mcf for the second quarter and $1.51 per Mcf for the first half of 2003.  On a comparative basis, the company's hedging activities had the effect of decreasing its average gas price during the second quarter of 2002 by $.37 per Mcf and increasing its average price by $.04 per Mcf during the first six months of 2002.  Southwestern's hedging activities also lowered its average oil price by $1.40 per barrel during the second quarter and $2.81 per barrel for the first half of 2003. 

Lease operating expenses for the company's E&P segment decreased during the second quarter of 2003 to $.36 per Mcf equivalent (Mcfe) from $.42 per Mcfe in the second quarter of 2002. However, taxes other than income taxes increased during the quarter to $.23 per Mcfe, up from $.18 per Mcfe in the same period in 2002, due to higher realized commodity prices. General and administrative expenses for the quarter increased to $.40 per Mcfe compared to $.28 per Mcfe in the same period in 2002, primarily due to increased pension costs and the accrual of incentive compensation costs.  The amortization rate per Mcfe for the company's full cost pool was $1.17 per Mcfe during the second quarter of 2003 compared to $1.16 per Mcfe in the same period in 2002.

During the first six months of 2003, Southwestern participated in 68 wells that included 49 producers, 8 dry holes and 11 wells that were still in progress at June 30, 2003.  This well count is more than double the 32 wells the company participated in during the first half of 2002, and is approximately equal to the 65 wells Southwestern participated in during all of 2002.  On a year-to-date basis, the company has invested $75.2 million in its E&P program, compared to $37.8 million invested in the first half of 2002.

At its Overton Field in Smith County, Texas, Southwestern has drilled and completed 21 wells and was in the process of drilling five wells and completing three wells at June 30, 2003. Southwestern's accelerated drilling program continues to set production highs for the field.  At year-end 2002, gross production from the field was approximately 27 MMcf per day.  Currently, production is approximately 54 MMcf per day.  The company currently plans to drill a total of 55 wells in the field during 2003.

In the Arkoma Basin, Southwestern has participated in 28 wells through the first six months of 2003, with 18 producers, six dry holes and four wells in progress at June 30, 2003.  The company continues to drill solid producers in its Ranger Anticline area.  Through the first six months of 2003, Southwestern has drilled six wells in the area, of which three have been put on production at an average rate of 2.5 MMcf per day and the other three are currently being completed.   In total, the company has drilled 20 wells in this area over the last few years with 17 successful completions. Earlier this year, the company obtained regulatory approval to reduce well spacing in this area from 640-acres per well to 80-acres per well.  The company currently holds 4,500 gross developed acres and 35,200 gross exploratory acres in this area.  Southwestern's working interest in these wells ranges from 73% to 100% and the company plans to drill six to eight additional wells in the area in 2003.

During the second quarter of 2003, the company drilled a sidetrack of its Shiloh prospect in Vermilion Parish, Louisiana.  This well was targeting the Cris R sand at approximately 14,000 feet. Due to mechanical problems, the company was unable to evaluate the sidetrack hole and has temporarily suspended operations on this well.  Southwestern is currently evaluating its alternatives, which may involve bringing in another working interest owner to jointly participate.

Also in the second quarter, Southwestern drilled a third well on its North Grosbec discovery in Assumption Parish, Louisiana.  The company held a 33% working interest in the Brown-Sonnier #1 well which targeted the P-10 sand at a depth of 17,200 feet.  This well was plugged and abandoned after log analysis indicated that the sand was wet.  Current gross production from the two existing North Grosbec wells continues to be strong at a combined rate of 14.6 MMcf per day and 500 barrels of oil per day.

Southwestern plans to spud its Coleburn prospect located in Jefferson Parish, Louisiana, during the third quarter.  This well targets the Tex W sand at 12,700 feet and Southwestern will operate this well with a 50% working interest.  The company also plans to drill up to three exploratory wells in its Duck Lake 3-D survey area in St. Martin and St. Mary Parishes later this year.  The first scheduled test is the company's Canvasback prospect, an 80 Bcfe gross reserve potential prospect expected to spud late in the third quarter, which will test the Liebusella sands at 18,200 feet.   

Utility Subsidiary Reaches Settlement on Rate Increase Request

            The company's utility systems realized a seasonal operating loss of $2.1 million in the second quarter of 2003, compared to a loss of $1.7 million for the same period in 2002.  Operating income for Southwestern's utility systems was $5.9 million during the first six months of 2003, down from $6.9 million in 2002. The comparative decreases in operating income in 2003 were primarily due to higher operating and general and administrative expenses.  Weather in the utility's service territory during the first six months of 2002 was 4% colder than normal and 12% colder than the prior year.

     In November 2002, the company's utility subsidiary, Arkansas Western Gas Company (AWG), filed an $11.0 million rate increase request with the Arkansas Public Service Commission (APSC). On July 17, 2003, AWG executed a Joint Stipulation and Settlement Agreement (Settlement Agreement) with the Staff of the APSC and various other consumer groups that would resolve all outstanding issues relating to AWG's rate increase request.  Under the terms of the Settlement Agreement, AWG would receive a rate increase of $4.2 million annually, exclusive of costs to be recovered through its purchase gas adjustment clause.  AWG would also be entitled to recover certain non-gas costs totaling $2.9 million through its purchase gas adjustment clause over a two-year period.   The difference between the $11.0 million rate adjustment requested by AWG and the rate adjustment contained in the Settlement Agreement primarily results from a reduction in AWG's requested return on equity and a change in AWG's assumed capital structure.  In the rate increase request that was filed with the APSC, AWG assumed an allowed return on equity of 12.9% and a capital structure of 48% debt and 52% equity.  The Settlement Agreement provides for an allowed return on equity of 9.9% and an assumed capital structure of 52% debt and 48% equity.  The 9.9% equity return is in line with the equity return approved in recent settlements that have been approved for the other two Arkansas local gas distribution companies.

 The proposed Settlement Agreement is subject to the approval of the APSC.  A scheduled hearing was held at the APSC on July 22nd and 23rd to hear testimony of AWG, the Staff of the APSC and the various other intervening parties that support the Settlement Agreement as well as the testimony of the Office of the Attorney General of the State of Arkansas who opposes the Settlement Agreement.  The APSC has requested the various parties file post-hearing briefs addressing the proposed Stipulation and Settlement Agreement by August 7th and the effective date of any rate increase has been extended until the first of October.  AWG's last rate increase was approved in December 1996 for its Northwest region and in December 1997 for its Northeast region.

Marketing and Other Results Remain Steady

The company's marketing operations reported operating income of $0.5 million for the second quarter of 2003 and $1.2 million for the six months ended June 30, 2003, compared to $0.5

million and $1.3 million, respectively, for the same periods in 2002.  Southwestern's marketing and transportation operations relate primarily to the marketing of its own gas production and some third-party gas that is sold primarily to industrial customers connected to its gas distribution systems.  The company's results related to its interest in the NOARK partnership was a gain of $1.4 million during the first six months of 2003 compared to a loss of $.4 million during the first six months of 2002. The 2003 results include a pre-tax gain of $1.3 million related to the sale of a non-strategic portion of NOARK's pipeline.

Southwestern Updates Guidance for 2003

The following statements regarding estimates for the year 2003 are considered to be forward-looking statements and Southwestern Energy'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 table demonstrates different NYMEX price scenarios and their corresponding estimated impact on the company's results for 2003, including current hedges in place, and incorporates actual results for the first six months of 2003:

NYMEX			Discretionary
Commodity Prices	Earnings	Operating Income	Cash Flow (1)	EBITDA (2)
$4.25 Gas	$36 - $39	$77- $80	$120 - $123	$137 - $140
$24.50 Oil	Million	Million	Million	Million
$5.00 Gas	$43 - $46	$90 - $93	$133- $136	$150 - $153
$28.00 Oil	Million	Million	Million	Million
$6.00 Gas	$55 - $58	$109 - $112	$152 - $155	$169 - $172
$28.00 Oil	Million	Million	Million	Million

(1) Discretionary cash flow is defined as net cash provided by operating activities before changes in operating assets and liabilities. The company has       included information concerning discretionary cash flow primarily because changes in operating assets and liabilities relate to the timing of cash receipts and disbursements which the company may not control and may not relate to the period in which the operating activities occurred. Further, management uses this measure to assess the company's ability to generate cash to fund its exploration and development drilling activities and to service or incur debt. Discretionary cash flow should not be considered in isolation or as a substitute for net cash provided by operating activities prepared in accordance with generally accepted accounting principles. The table below reconciles discretionary cash flow with net cash provided by operating activities as derived from the company's financial information.

	3 Months Ended June 30,				6 Months Ended June 30,
		2003		2002		2003		2002
Net cash provided by operating activities	$	31,736	$	20,904	$	70,308	$	42,256
Add back (deduct):
Change in operating assets and liabilities		(3,208)		(3,531		(5,094)		1,001
Discretionary cash flow	$	25,528	$	17,373	$	65,214	$	43,257

The company does not forecast changes in operating assets and liabilities and, therefore, a reconciliation of the company's forecasted discretionary cash flow to net cash provided by operating activities is not provided.

 (2)      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. Net income is a financial measure calculated and presented in accordance with generally accepted accounting principles. The table below reconciles net income with EBITDA as derived from the company's financial information.

		2003 Guidance
	NYMEX Commodity Price Assumptions
	$425 Gas	$5.00 Gas	$6.00 Gas
	$24.50 Oil	$28.00 Oil	$28.00 Oil
		(in millions)
Net income	$36-$39	$43-$46	$55-$58
Add back:
Provision for income taxes - deferred	22-23	26-28	34-36
Interest expense	17-18	17-18	17-18
Depreciation, depletion and amortization	60-61	60-61	60-61
EBITDA	$137-$140	$150-$153	$169-$172

        Southwestern's executive management team will host a teleconference call on Wednesday, July 30^th at 10:30 a.m. Eastern to discuss the company's second quarter 2003 results. The toll-free number to call is 800-967-7185 and the reservation number is 146862. 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 independent energy company primarily focused on the exploration for and production of natural gas. 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.

Financial Summary Follows

# # #

OPERATING STATISTICS (Unaudited)							Page 1 of 5
Southwestern Energy Company and Subsidiaries
	Three Months				Six Months
Periods Ended June 30		2003		2002		2003	2002
			(in thousands, except share/per share amounts)
Exploration & Production
Production
Affiliated gas sales (MMcf)		1,790		1,328		3,456	3,179
Unaffiliated gas sales (MMcf)		7,469		7,800		13,904	15,180
Total Gas production (MMcf)		9,259		9,128		17,360	18,359
Oil production (MBbls)		139		195		264	378
Total Equivalent production (MMcfe)		10,093		10,298		18,944	20,627
Commodity Prices
Average realized gas price per Mcf		$4.28		$2.96		$4.22	$2.86
Average realized oil price per Bbl		$27.40		$22.62		$27.54	$20.10
Operating Expenses per Mcfe
Lease operating expenses		$0.36		$0.42		$0.39	$0.43
Taxes, other that income taxes		$0.23		$0.18		$0.25	$0.16
General & administrative expenses		$0.40		$0.28		$0.42	$0.28
Full cost pool amortization		$1.17		$1.16		$1.17	$1.16
Marketing
Gas volumes marketed (MMcf)		10,207		12,363		18,723	24,639
Gas Distribution
Deliveries (Bcf)
Sales volumes		1.9		1.9		10.1	9.7
End-use transportation		1.9		2.0		4.4	4.3
Off-system transportation		0.1		0.7		0.1	0.7
Total deliveries		3.9		4.6		14.6	14.7
Average number of customers		138,671		136,488		139,611	137,280
Average sales rate per Mcf		$9.74		$7.66		$7.34	$6.32
Heating weather - degree days		279		228		2,554	2,277
- percent of normal		90%		74%		104%	92%

STATEMENT OF OPERATIONS (Unaudited)								Page 2 of 5
Southwestern Energy Company and Subsidiaries
	Three Months				Six Months
Periods Ended June 30		2003		2002		2003		2002
	(in thousands, except share/per share amounts)
Operating Revenues
Gas sales	$	49,286	$	37,606	$	126,993	$	104,592
Gas marketing		11,667		12,228		24,273		21,930
Oil Sales		3,821		4,416		7,280		7,599
Gas transportation and other		1,713		1,754		6,596		3,541
		66,487		56,004		165,142		137,662
Operating Costs and Expenses
Gas purchases - utility		2,199		3,804		29,247		28,572
Gas purchases - marketing		10,850		11,454		22,408		20,127
Operating expenses		9,248		9,505		18,294		19,063
General and administrative expenses		7,663		6,034		15,546		11,824
Depreciation, depletion and amortization		13,686		13,868		26,069		27,738
Taxes, other than income taxes		2,895		2,439		5,958		4,599
		46,541		47,104		117,522		111,923
Operating Income		19,946		8,900		47,620		25,739
Interest Expense
Interest on long-term debt		4,075		5,345		9,002		10,699
Other interest charges		337		336		722		658
Interest capitalized		(501)		(360)		(866)		(651)
		3,911		5,321		8,858		10,706
Other Income (Expense)		(63)		(232)		1,359		(474)
Income Before Income Taxes, Minority Interest & Accounting Change		15,972		3,347		40,121		14,559
Minority Interest in Partnership		(609)		(469)		(1,374)		(762)
Income Before Income Taxes & Accounting Change		15,363		2,878,		38,747		13,797
Provision for Income Taxes - Deferred		5,837		1,108		14,724		5,312
Income Before Accounting Change		9,526		1,770		24,023		8,485
Cumulative Effect of Adoption of Accounting Principle		-		-		(855)		-
Net Income	$	9,526	$	1,770	$	23,168	$	8,485
Basic Earnings Per Share:
Income Before Accounting Change		$0.27		$0.07		$0.76		$0.34
Cumulative Effect of Adoption of Accounting Principle		-		-		(0.03)		-
Net Income		$0.27		$0.07		$0.73		$0.34
Diluted Earnings Per Share:
Income Before Accounting Change		$0.26		$0.07		$0.74		$0.33
Cumulative Effect of Adoption of Accounting Principle		-		-		(0.03)		-
Net Income		$0.26		$0.07		$0.71		$0.33
Weighted Average Common Shares Outstanding
Basic		35,053,171		25,208,974		31,614,921		25,146,550
Diluted		36,087,726		26,131,452		32,558,360		25,995,692

BALANCE SHEETS (Unaudited)		Page 3 of 5
Southwestern Energy Company and Subsidiaries
June 30,	2003	2002
	(in thousands)
ASSETS
Current Assets	$     65,414	$     65,220
Investments	14,231	15,177
Property, Plant and Equipment, at cost	1,373,737	1,264,556
Less: Accumulated depreciation, depletion and amortization	680,391	633,335
	693,346	631,221
Other Assets	15,788	13,359
	$     788,779	$   724,977
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities	$      77,452	$     58,581
Long-Term Debt	247,800	344,500
Deferred Income Taxes	125,486	119,719
Other Liabilities	27,654	7,721
Commitments and Contingencies
Minority Interest in Partnership	13,298	13,161
Shareholders' Equity
Common stock, $.10 par value; authorized 75,000,000 shares, issued 37,225,584 shares	3,723	2,774
Additional paid-in capital	121,149	19,433
Retained earnings	221,156	192,162
Accumulated other comprehensive income (loss)	(26,299)	(6,354)
	319,729	208,015
Less: Common stock in treasury, at cost, 1,650,492 shares in 2003 and 2,054,972 shares in 2002	18,388	23,571
Unamortized cost of restricted shares issued under stock incentive plan, 496,429, shares in 2003 and 420,562 shares in 2002	4,252	3,149
	297,089	181,295
	$     788,779	$   724,977

STATEMENTS OF CASH FLOWS (Unaudited)				Page 4 of 5
Southwestern Energy Company and Subsidiaries
		Six Months
Periods Ended June 30		2003		2002
		(in thousands)
Cash Flows From Operating Activities
Net Income	$	23,168	$	8,485
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization		27,668		28,939
Deferred income taxes		14,724		5,312
Ineffectiveness of cash flow hedges		(556)		-
Equity in (income) loss of NOARK partnership		(1,444)		361
Minority interest in partnership		799		160
Cumulative effect of adoption of accounting principle		855		-
Change in operating assets and liabilities		5,094		(1,001)
Net cash provided by operating activities		70,308		42,256
Cash Flows From Investing Activities
Capital expenditures		(80,468)		(40,774)
Distribution from NOARK partnership		2,500		-
Decrease in gas stored underground		(1,705)		1,239
Other items		(479)		1,927
Net cash used in investing activities		(80,152)		(37,608)
Cash Flow From Financing Activities
Issuance of common stock		103,213		-
Payments on revolving long-term debt		(184,900)		(120,200)
Borrowings under revolving long-term debt		90,300		114,700
Change in bank drafts outstanding		218		-
Proceeds from exercise of common stock options		1,292		-
Minority interest contributions		44		-
Net cash provided by (used in) financing activities		(10,167)		(5,500)
Increase (decrease) in cash		323		(852)
Cash at beginning of year		1,690		3,641
Cash at end of period	$	2,013	$	2,789

SEGMENT INFORMATION (Unaudited)									Page 5 of 5
Southwestern Energy Company and Subsidiaries
		Exploration				Marketing,
		and		Gas		Transportation
		Production		Production		and Other		Eliminations		Total
						(in thousands)
Quarter Ending June 30, 2003
Revenues		$	43,489	$	20,637	$	50,009	$	(47,648)	$	66,487
	Gas purchases		-		11,467		49,079		(47,497)		13,049
	Operating expenses		3,615		5,662		-		(29)		9,248
	General and administrative expenses		4,000		3,490		295		(122)		7,663
	Depreciation, depletion & amortization		12,117		1,534		35		-		13,686
	Taxes, other than income taxes		2,281		592		22		-		2,895
Operating Income (Loss)		$	21,476	$	(2,108)	$	578	$	-	$	19,946
Capital Investments		$	46,784	$	3,099	$	216	$	-	$	50,099
Quarter Ending June 30, 2002
Revenues		$	31,416	$	16,883	$	38,125	$	(30,420)	$	56,004
	Gas purchases		-		8,300		37,238		(30,280)		15,258
	Operating expenses		4,375		5,152		-		(22)		9,505
	General and administrative expenses		2,887		3,008		257		(118)		6,034
	Depreciation, depletion & amortization		12,248		1,564		56		-		13,868
	Taxes, other than income taxes		1,843		577		19		-		2,439
Operating Income (Loss)		$	10,063	$	(1,718)	$	555	$	-	$	8,900
Capital Investments		$	17,954	$	1,412	$	39	$	-	$	19,405
Six Months Ending June 30, 2003
Revenues		$	83,225	$	78,144	$	98,041	$	(94,268)	$	165,142
	Gas purchases		-		49,634		95,952		(93,931)		51,655
	Operating expenses		7,342		11,047		-		(95)		18,294
	General and administrative expenses		7865		7,262		661		(242)		15,546
	Depreciation, depletion & amortization		22,931		3,068		70		-		26,069
	Taxes, other than income taxes		4,674		1,236		48		-		5,958
Operating Income		$	40,413	$	5,897	$	1,310	$	-	$	47,620
Capital Investments		$	75,232	$	4,940	$	296	$	-	$	80,468
Six Months Ending June 30, 2002
Revenues		$	59,836	$	65,340	$	64,860	$	(52,374)	$	137,662
	Gas purchases		-		37,918		62,832		(52,051)		48,699
	Operating expenses		8,855		10,295		-		(87)		19,063
	General and administrative expenses		5,718		5,840		502		(236)		11,824
	Depreciation, depletion & amortization		24,528		3,129		81		-		27,738
	Taxes, other than income taxes		3,342		1,213		44		-		4,599
Operating Income		$	17,393	$	6,945	$	1,401	$	-	$	25,739
Capital Investments		$	37,835	$	2,760	$	179	$	-	$	40,774