Southwestern Energy Co. of Houston said Monday December 19,2011 that it will slightly lower its 2012 investment in the Fayetteville Shale.

In a document filed with the Securities & Exchange Commission, Southwestern estimated it will have invested $1.3 billion in the shale in 2011, and will invest $1.2 billion in 2012.

The investment is still the largest by the company than in any other play. Its next greatest expenditure comes in the Marcellus Shale in Pennsylvania, where Southwestern will increase expenditures from $290 million in 2011 to $530 million in 2012.

The company expects to participate in about 590 Fayetteville shale wells and about 85 Marcellus Shale wells in 2012, compared to 632 and 37 in 2011.

The company's total capital investments in 2012 are projected at $2.3 billion.
 
"Our capital program is flexible and may be adjusted to correspond with significant changes in gas prices," Southwestern President and CEO Steve Mueller said in the document.

"Meanwhile, our hedges in place for 2012 provide a secure level of earnings and cash flow and our vertical integration gives us meaningful protection against higher costs in the future. Our 2012 investments are expected to be funded through cash flow and borrowings on our revolving credit facility."