Southwestern Energy (SWN) reports earnings today after the close. Expect to hear good news.

SWN is more than an energy play. SWN is a pioneer in horizontal drilling, meaning instead of erecting many rigs that drill down into a gas field, it simply taps a well once and then drills sideways to access the remainder of the field. This technology keeps costs down while boosting output. This is particularly helpful to SWN when gas prices are soft, because its superior technology allows it to simply ramp up production to offset lower prices without increasing costs.

  Why SWN Is One of 5 Stocks to Buy Now

Now when I refer to gas prices, I’m talking about natural gas. SWN is almost strictly a natural gas company, and natural gas is currently the cleanest-burning fossil fuel. With the world’s increasing attention to green power, the future is bright for this stock.

Look For SWN to Deliver a 17% Earnings Surprise

I track 5,000 stocks in my proprietary Portfolio Grader database, and SWN is popping off the screen as a big time earnings surprise candidate. For this quarter, the consensus estimates call for SWN to post 34 cents per share. I expect the company to hit 40 cents per share, for a 17% surprise. This is a company that has a history of beating earnings and getting a quick pop in the stock. In the third quarter of last year, earnings came out 29% higher than expected, and the stock popped 15% in the days surrounding the announcement.

SWN has been bouncing higher over the last few months, and today’s earnings announcement should be the catalyst that sends the stock off on its next leg higher.

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