Southwestern Energy Company (NYSE: SWN - News) today announced financial and operating results for the third quarter of 2005. For the third quarter of 2005, Southwestern reported net income of $39.5 million, or $0.51 per diluted share, up 55% from $25.4 million, or $0.34* per diluted share, for the same period in 2004.

Net cash provided by operating activities before changes in operating assets and liabilities, was $80.3 million in the third quarter of 2005, up 37% from $58.5 million for the same period in 2004. An 8% increase in production volumes and higher realized natural gas and oil prices, partially offset by increased operating costs and expenses, drove the improved financial results.

Net income for the nine months ended September 30, 2005 was $98.9 million, or $1.31 per diluted share, up 40% from $70.7 million, or $0.96* per diluted share, for the same period in 2004. Net cash provided by operating activities before changes in operating assets and liabilities was $219.0 million for the first nine months of 2005, up 32% from $165.3 million for the same period in 2004.

"The third quarter of 2005 was marked by several significant achievements for our company," stated Harold M. Korell, President and Chief Executive Officer of Southwestern Energy. "Our net income, cash flow and production for the quarter reached record levels and were the highest in the company's history. We also successfully completed an equity offering to accelerate our development of the Fayetteville Shale play in Arkansas. Our balance sheet is the strongest it's ever been and we are well-positioned to continue our growth."