Southwestern Energy shares jump on soaring Ark. gas output

Shares of Southwestern Energy Co. soared Friday, a day after the natural gas producer's big first-quarter profit surprised Wall Street analysts.

Quarterly profit more than doubled, easily beating analyst estimates for both earnings and revenue, on substantial growth in production volume and higher realized natural gas prices. The Houston-based company's increased production came largely from a natural gas-rich part of Arkansas near East Texas and Oklahoma.

Pritchard Capital Partners analyst Jeff Hayden called the first-quarter results "a blowout any way you slice it" and said he was raising his net asset value on Southwestern to the "high $40s."

Banc of America Securities analyst Michael Schmitz raised his target price on the shares to $50, writing that the company "is well positioned to deliver among the highest returns and "organic" growth in our (exploration and production) coverage group over the next five years."

Friedman, Billings, Ramsey analyst Amir Arif raised his target price to $40.

Shares jumped $6.87, or 18.3 percent, to $44.46 Friday, after setting a 21st century record high of $45.43 earlier in the session.