Southwestern Energy Company, an integrated energy company, engages in the exploration, development, and production of natural gas and crude oil in the United States. The company also focuses on natural gas gathering and marketing businesses. Segments The company operates in two segments, Exploration and Production (E&P) and Midstream Services. E&P This segment engages in the exploration for and production of natural gas and oil, with its operations being principally focused within the United States on development of an unconventional natural gas reservoir located on the Arkansas side of the Arkoma Basin, which is referred to as the Fayetteville Shale play. The company is also engaged in exploration and production activities in Pennsylvania, where it is targeting the unconventional natural gas reservoir known as the Marcellus Shale, and to a lesser extent in Texas and in Arkansas and Oklahoma in the Arkoma Basin. The company also seeks to find and develop new oil and natural gas plays with significant exploration and exploitation potential, which are referred to as ‘New Ventures’. The company primarily conducts its exploration and production operations through its wholly-owned subsidiaries, SEECO, Inc. (SEECO) and Southwestern Energy Production Company (SEPCO). SEECO operates in Arkansas where it holds a large base of both developed and undeveloped natural gas reserves, and conducts the Fayetteville Shale drilling program and the conventional Arkoma Basin operations in the Arkoma Basin. SEPCO conducts development drilling, exploration programs and production operations in Pennsylvania, Oklahoma, Texas, Arkansas, and Louisiana. SWN Drilling Company, Inc., a wholly-owned subsidiary of SEPCO, operates drilling rigs in Arkansas, Pennsylvania and Louisiana, as well as other operating areas. The company also provides oilfield products and services through DeSoto Sand, L.L.C. and SWN Well Services, L.L.C., both of which are wholly-owned subsidiaries of SWN E&P Services, L.L.C. The company’s Canadian operations are conducted by its subsidiary, SWN Resources Canada Inc. As of December 31, 2012, the company’s estimated proved natural gas and oil reserves were 4,018 billion cubic feet of natural gas equivalent. Operations Fayetteville Shale Play: The company’s Fayetteville Shale play is a primary focus of the company’s E&P business. The Fayetteville Shale is a Mississippian-age unconventional gas reservoir located on the Arkansas side of the Arkoma Basin, ranging in thickness from 50 to 550 feet and ranging in depth from 1,500 to 6,500 feet. As of December 31, 2012, the company held leases for approximately 913,502 net acres in the play area (310,135 net undeveloped acres, 479,925 net developed acres held by Fayetteville Shale production and 123,442 net acres held by conventional production in the traditional Fairway portion of the Arkoma Basin). As of December 31, 2012, the company had spud a total of 3,586 wells in the play. Marcellus Shale Play: As of December 31, 2012, the company had approximately 176,298 net acres in Pennsylvania under which the Marcellus Shale play is present (159,078 net undeveloped acres and 17,220 net developed acres held by production), compared to approximately 186,893 net acres at year-end of 2011 and 173,009 net acres at year-end 2010. As of December 31, 2012, the company had spud 160 operated wells, 72 of which were on production and 153 of which would be horizontal wells. Ark-La-Tex: The company’s Ark-La-Tex division includes its conventional assets in the Arkoma Basin in Arkansas and Oklahoma and its conventional and unconventional assets in East Texas. New Ventures: As of December 31, 2012, the company held 3,819,128 net undeveloped acres in connection with its New Ventures prospects, of which 2,518,518 net acres were located in New Brunswick, Canada. MIDSTREAM SERVICES This segment engage in natural gas gathering activities in Arkansas, Texas, and Pennsylvania through its gathering subsidiaries, DeSoto Gathering Company, L.L.C. (DeSoto Gathering), and Angelina Gathering Company, L.L.C. (Angelina Gathering). DeSoto Gathering and Angelina Gathering primarily suppor