Table of Contents Index to Financial Statements SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, (in millions) 2019 2018 2017 Cash Flows From Operating Activities: Net income $ 891  $ 537  $ 1,046  Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 471  560  504  Amortization of debt issuance costs 8  8  9  Impairments 16  171  —  Deferred income taxes (409) —  (71) (Gain) loss on derivatives, unsettled (94) 24  (451) Stock-based compensation 8  14  24  (Gain) loss on early extinguishment of debt (8) 17  70  (Gain) loss on sale of assets, net 2  (17) (6) Other 10  (1) 13  Change in assets and liabilities: Accounts receivable 234  (153) (65) Accounts payable (141) 65  48  Taxes payable —  2  4  Interest payable —  (10) (2) Inventories (7) (13) (1) Other assets and liabilities (17) 19  (25) Net cash provided by operating activities 964  1,223  1,097  Cash Flows From Investing Activities: Capital investments (1,099) (1,290) (1,268) Proceeds from sale of property and equipment 54  1,643  10  Other —  6  6  Net cash provided by (used in) investing activities (1,045) 359  (1,252) Cash Flows From Financing Activities: Payments on current portion of long-term debt (52) —  (328) Payments on long-term debt (54) (2,095) (1,139) Payments on revolving credit facility (532) (1,983) —  Borrowings under revolving credit facility 566  1,983  —  Change in bank drafts outstanding (19) 17  9  Proceeds from issuance of long-term debt —  —  1,150  Debt issuance costs (3) (9) (24) Purchase of treasury stock (21) (180) —  Preferred stock dividend —  (27) (16) Cash paid for tax withholding (1) (3) (2) Other 1  —  (2) Net cash used in financing activities (115) (2,297) (352) Decrease in cash and cash equivalents (196) (715) (507) Cash and cash equivalents at beginning of year 201  916  1,423  Cash and cash equivalents at end of year $ 5  $ 201  $ 916  The accompanying notes are an integral part of these consolidated financial statements. 77