[Please refer to Appendix. Southwestern Energy Company (SWN) 2012 Production/Capex Guidance Maintained; Brown Dense Work Continues ESTIMATE CHANGE

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1 May 7, 2012 Baird Equity Research Exploration & Production Southwestern Energy Company (SWN) 2012 Production/Capex Guidance Maintained; Brown Dense Work Continues 2012 production/capex guidance maintained; second Brown Dense well result encouraging but more work to do. SWN is dropping rigs and adding fracing capability in the Fayetteville. Marcellus production to ramp to ~300 MMcf/d by 2012YE, adding additional takeaway capacity over the next three years. Second Brown Dense well IP of 301 bbl/d oil and 1,700 Mcf/d gas better than the first well but not economically viable. SWN shifting $50MM of capital to New Ventures to accelerate learning. Maintain Neutral rating. Second Brown Dense well an improvement... The Garret well, SWN's second well targeting the Lower Smackover Brown Dense, reported 301 bbl/d oil and 1,700 Mcf/d gas with 55% of water load recovered after 48 days. While certainly an improvement from the first Brown Dense well (Roberson, IP rate of 103 bbl/d and 200 Mcf/d), we view the results as unlikely to excite the market given development at current rates are not economically viable. We look to results from the third Brown Dense well, currently awaiting completion, for further indications as to play viability. Dropping rigs and adding fracing capability in the Fayetteville. Given the weak gas tape, SWN continues to drill its best wells and is reducing Fayetteville activity, dropping to eight rigs from 12 at the beginning of the year. It also formed a subsidiary, SWN Oil Services, to operate frac spreads to drive incremental savings ($200K per Fayetteville well); first spread targeted to be operational in 4Q12. Drilling out the Marcellus. SWN is expected to ramp up Marcellus activity in 2012, increasing to four rigs from the current two. SWN has participated in 94 Marcellus wells to date, with the majority of 1Q12 activity concentrated in Susquehanna. The company expects Marcellus production to ramp to ~300 MMcf/d by 2012YE and is adding significant takeaway capacity over the next three years (325 MMcf/d at 2012YE, 517 MMcf/d by 2013YE, 557 MMcf/d by 2014YE; and 707 MMcf/d by 2015YE) outlook maintained; shifting $50MM to New Ventures. SWN maintained its 2012 capex of $2.1B and production guidance of Bcfe (+13% Y/Y). SWN spent $573MM during 1Q and plans to shift another $50MM to New Ventures in 2012 for the Brown Dense play. Capex will be front loaded in the first two quarters. Maintain Neutral rating. ESTIMATE CHANGE 1-Year Price Chart J-11 J Stock Data A-11 S-11 O-11 Rating: Neutral Suitability: Average Risk Price Target: $35 Price (5/4/12): $28.73 Market Cap (mil): $10,056 Shares Out (mil): Average Daily Vol (mil): 5.99 Dividend Yield: 0.0% Estimates FY Dec 2011A 2012E 2013E Q A 0.31 A NA E Q A 0.24 E NA E Q A 0.26 E NA E Q A 0.27 E NA E Fiscal EPS 1.82 A 1.08 E 1.53 E Previous (FY) 1.16 E 1.56 E Fiscal P/E 15.8x 26.6x 18.8x Chart/Table Sources: Bloomberg and Baird Data N-11 D-11 J-12 F-12 M-12 A-12 M-12 SWN is a large-cap company engaged in exploration and production of natural gas, in addition to related gathering and marketing activities. [Please refer to Appendix - Important Disclosures and Analyst Certification] Hsulin Peng hpeng@rwbaird.com

2 Details Financial Results and Guidance 1Q results miss. SWN reported 1Q EPS/DCFPS of $0.31/$1.06, slightly below our $0.32/$1.06 and consensus $0.32/$1.05. Variance versus our model was largely lower gas price realization (higher gas diff), higher production taxes (PA impact fee) and DD&A, offset by lower LOE. EBITDAX was $380MM vs. our/consensus $376MM/$388MM forecast. Production. 1Q production was Bcfe (+16% Y/Y), slightly lower than our Bcfe forecast and in line with company guidance. Fayetteville production was Bcf, -1%% Q/Q. Marcellus production was 9.3 Bcf, +15% Q/Q outlook maintained; shifting $50MM to New Ventures. SWN maintained its 2012 capex of $2.1B and production guidance of Bcfe (+13% Y/Y). SWN spent $573MM during 1Q and plans to shift another $50MM to New Ventures in 2012 for the Brown Dense play. Capex will be front loaded in the first two quarters. Solid liquidity position. SWN issued $1B of senior notes at 4.1% in March. It currently has zero drawn on its unsecured $1.5B credit facility and $200MM of cash on hand at quarter end. Updating model and 2012 estimates. We maintain our 2012 production forecast of 566 bcfe (+13 Y/Y). At our price deck, we estimate EBITDA of $1.5B and operating cash flow of $1.5B, with SWN exiting 2012 with net debt/book ratio of 30%. We estimate 46% of 2012 gas production is hedged. Our 2012 EPS estimate is lowered to $1.08 from $1.16 due to slightly higher gas differentials. Operational Update Second Brown Dense an improvement but likely still disappoints. SWN recently released results from the second well on its ~540,000 net acre position targeting the Lower Smackover Brown Dense formation. - Recall, the Roberson well was placed on production in February with a reported IP rate of 103 bbl/d and 200 Mcf/d with eight of 11 stages producing. The well was shut-in for pressure-buildup testing in March. - The second well, the Garrett well in Claiborne Parish, Louisiana, 10,863 depth, and 6,536 ft horizontal lateral, was completed with 19 frac stages. After 48 days, the well reported 301 bbl/d oil and 1,700 Mcf/d gas with 55% of water load recovered. Despite being an improvement from the first well, the result is unlikely to engender market excitement as the initial rates are still below the threshold necessary to consider the Brown Dense economically viable for development given ~$10MM-$12MM well costs. - SWN's third well, the BML in Union Parish, received a pressure kick during drilling and is testing at the highest pressures found in the basin yet. Lateral length ~4,000 feet and 30-stage frac is to be completed later in May. - Given the need to better understand the acreage, SWN will likely add another rig in 3Q12 to learn faster and to make a decision regarding moving the formation to the development phase by year-end. - Currently, SWN is permitting four additional well locations in Louisiana and one additional well location on the Arkansas side, with the decision on where to drill next expected after results from the third well are reviewed. New oil play in the DJ Basin. SWN continues to expand its Colorado holdings, increasing the DJ basin acreage to 264,000 net acres. Recall the company is testing a new unconventional oil play targeting the middle and late Pennsylvanian to Permian age carbonate/shale. The initial well, the Ewertz Farms in Adams County, CO, targets the Marmaton formation and is currently logging. The second well, the Staner well in Arapahoe County, is expected to spud in May. Fayetteville update. During 1Q, SWN placed 146 wells on production with average IP of 3,319 2

3 Mcf/d (3,646 in 4Q), average lateral of 4,743 ft (4,703 in 4Q) for $2.8M well cost, and average drill time of 7.3 days. SWN formed a subsidiary, SWN Oil Services, to operate frac spreads to drive incremental savings ($200K per Fayetteville well); first spread targeted to be operational in 4Q12. SWN is dropping rigs in the Fayetteville given the weak gas tape, at eight rigs currently versus 12 at the beginning of the year. Importantly, SWN has no contract obligations on rigs leaving the company with freedom to lay down rigs when beneficial. Marcellus update. SWN is expected to ramp up Marcellus activity in 2012, increasing to four rigs from the current two and Marcellus production to ramp to ~300 MMcf/d by 2012YE. SWN participated in 94 Marcellus wells to date with 24 of them producing at the end of March. First quarter drilling was concentrated in Susquehanna, with plans to mobilize the third rig to drill out 10 to 12 wells in Lycoming County following the closing of a deal with PVA which will provide adequate takeaway capacity and a water line. SWN will add meaningful takeaway capacity over each of the next three years. It now has firm transportation and sales agreements in place for 325 MMcf/d at 2012YE, 517 MMcf/d by 2013YE, 557 MMcf/d by 2014YE; and 707 MMcf/d by 2015YE. SWN entered into a 15-year, 150 MMcf/d of firm transportation agreement with Constitution Pipeline to connect to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems. Targeted in-service date is 2Q15. Valuation. Our price target of $35 is based on average NAV and EV/EBITDAX multiple valuation methods. Net asset value (NAV) approach equates to $42/share. SWN s proved reserves estimated to be worth $18/share, plus its midstream assets $7/share (8.5x 2012 EBITDA), less net debt of $5/share, for a total of $20/share. We estimate SWN s unproved Fayetteville acreage is worth $17/share and unproved Marcellus acreage $3/share, based on our NAV methodology using a 10% discount rate applying a 85% risk factor to account for the higher risk. We also assign $2/share to SWN s acreage in East Texas/Bossier and Arkoma basin but give no value to SWN s New Brunswick or other New Venture acreage. Using EV/EBITDAX Multiple approach, we value SWN at $28/share based on 8X our 2012 EV/EBITDAX of $1.5B forecast and compared to SWN historical 8-12x historical trading range. Investment Thesis SWN is pure-play natural gas E&P company. Core E&P business is comprised of 99% natural gas, making SWN one of largest domestic producers of natural gas. SWN s core assets are located in Fayetteville shale targeting the Arkoma basin, with approximately 889,000 net acres. Fayetteville represents roughly 85-90% of SWN s daily production and 87% of its 2011 proved reserves. SWN is a premier E&P company whose management has an excellent track record of growing production, improving drilling efficiency, all the while stay as a low-cost operator. Management s approach to maintain a disciplined capital structure, targeting debt to total capital ratio in 30% area, remains attractive in the current uncertain, low natural gas price environment. Core Fayetteville Shale. SWN core assets base is in the Fayetteville shale, with over 899,000 net acres located in Arkansas in the Arkoma basin. Fayetteville is SWN s largest operating region, constituting 85-90% of its production and 87% of its proved reserves (2011 year-end). In 2012, SWN plans to spend $1.1B in the Fayetteville region. According to management, there are over 9,000 remaining drilling locations in its core 600,000 net acres, or greater than 10 years of inventory at its current drilling pace. Fayetteville acreage position is largely contiguous, adding economies of scale and operating flexibility. SWN continues to operate and gain knowledge of the Fayetteville shale, and is beginning to realize better economies of scale. SWN continues to gain drilling efficiency in its core Fayetteville play, with average well cost $2.8M, drilling days from re-entry to re-entry less than 8 days (vs. 17 days 3

4 in 2007) while at the same time increasing the horizontal lateral length. SWN plans to vertically integrate into the pressure pumping business to further reduce well cost. Appalachia. The Appalachia region is an emerging opportunity for SWN, first acquiring acreage leases in With around 175,000 net acres targeting the Marcellus shale in northeast PA, the Appalachia region is a major area of investment for SWN. SWN plans to allocate $526M to Marcellus to drill and complete 80 to 85 gross (65 to 70 net) horizontal wells in New Ventures. SWN holds 2.5M acres in New Brunswick, ~540,000 net acres in Lower Smackover Brown Dense, and 264,000 net acres in an oil play in the DJ basin. These are early-stage exploration projects for SWN. It s too early to speculate what the acreage could turn out. Risks & Caveats Commodity price sensitivity, volatility in oil and natural prices. Significant change in commodity prices may cause dramatic swings in revenue and profitability and cause disruptions in capex program and drilling program. In addition, extended periods of lower commodity prices may negatively influence annual reserve reports and may potentially reduce the amount of borrowing base under credit agreements. Availability and costs of drilling and completion services. The lack of available drilling and completion equipment and services may cause a disruption in operations and lead to a potential delay in well completion, and ultimately be a negative impact on profitability. In addition to availability, higher services costs used for drilling and completion (equipment, supplies, technical personnel) may weigh on project s rates of return. Unexpected severe weather and adverse operating conditions. Severe weather may cause delay in operations. Harsh winter weather can create unfavorable operating conditions, causing potential shortages, elevated costs, or delays in drilling activity. Geological risk. Drilling prospects are identified based on geological information, seismic testing, and other studies; however a drilled well may not produce anticipated quantities, and hence will produce lower economics. Regulatory and environmental issues. Exploration & Production (E&P) companies are subject to stringent regulations across multiple government organizations. Changes in the rules and/or failure to comply with regulations may cause a financial penalty, restricted drilling activity and/or other potential costs. Changes in tax laws or elimination of certain deductions may create an additional financial headwind. Company Description SWN is a large-cap company engaged in exploration and production of natural gas, in addition to related gathering and marketing activities. Key assets are located in the Fayetteville shale in Arkoma, conventional Arkoma targeting the Atokan-age objectives in western Arkansas and Oklahoma, East Texas, and an emerging presence in northeastern Pennsylvania in the Marcellus shale. Exploratory activity in New Brunswick, Canada adds potential longer-term development opportunity. SWN s core E&P business represents 90% of its EBITDAX, with Midstream Services business accounting for the other 10%. With virtually all production from natural gas (~99%), SWN provides a compelling investment opportunity for those who believe in long-term appreciation of natural gas price. 4

5 Southwestern Energy Quarterly Financial Statements Hsulin Peng, Analyst, Consolidated Earnings ($ Millions Except Per Share Data) FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 Q1 Q2E Q3E Q4E 2012E 2013E Commodity Price Realization Benchmark Prices Henry Hub Gas ($/Mcf) WTI Crude ($/BBL) NGL ($/Gal) Production Gas (Bcf) Oil (MMBbl) NGL (MMBbl) Total Production (Bcfe) YOY Growth Rate 71% 54% 35% 24% 16% 12% 12% 13% 13% 13% Revenues Gas , , , , , ,345.5 Oil E&P Other (121.6) (116.5) (50.3) Total Production Revenues , , , , , ,352.7 Marketing Gathering Midstream & Eliminations Other (10.4) (19.1) (11.7) (0.7) (0.7) - Total Revenues , , , , , , ,831.6 Costs and expenses Production expenses Production and ad valorem taxes Gas purchases - marketing Midstream O&M (66.1) (93.9) (143.9) (179.8) (50.2) Abandonment/impairment G&A Total Expenses , , , Recurring EBITDA(X) , , , , ,842.0 EBITDA , , , , ,842.0 Total DD&A EBIT (35.0) 1, , Interest Expense (0.7) (23.9) (28.9) (18.6) (26.2) (24.1) (7.3) (5.6) (7.2) (9.0) (29.1) (50.7) Equity Earnings Other Income (Expense) 17.1 (0.2) (0.2) Total Other Income (Expense) 16.4 (24.1) (24.5) (17.2) (25.7) (24.1) (7.5) (5.6) (7.2) (9.0) (29.1) (50.7) EBT (52.155) , Income Tax Expense (Benefit) Current (65.0) Deferred Total Income Taxes (Benefit) (16.4) Effective Tax Rate (%) 38% 38% 38% 31% 39% 39% 40% 40% 40% 40% 40% 40% Minority Interest (0.6) (0.3) (0.6) Gain (loss) on asset sales NI from Continuing Operations (35.6) Discontinued Operations, Net of Tax Changes in Accounting GAAP Net Income (Loss) to Common (35.650) Recurring NI Adjustments: Net Income (Loss) (35.6) Minorty Interest Asset Impairment Gain/(Loss) from Disposal Other Non-Recurring (Income) Expenses Other Non-Recurring (Gains) Losses Tax Effect Non-GAAP Recurring Earnings GAAP EPS Basic (0.10) Diluted (0.10) Recurring EPS Basic Diluted Wtd average common shares O/S Basic Diluted Shares O/S Discretionary Cash Flow , , , , , ,776.3 Cash Flow From Operations , , , , , ,776.3 DCF/Share CFPS Source: Company reports and Robert W. Baird estimates. Please refer to "Appendix - Important Disclosures" and Analyst Certification statement on the last page. 5

6 Southwestern Energy Quarterly Financial Statements Hsulin Peng, Analyst, Consolidated Balance Sheet ($ Millions Except Per Share Data) FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 Q1 Q2E Q3E Q4E 2012E 2013E Assets Cash & Equivalents Accounts Receivable, net Deferred Tax Assets Short-Term Derivative Instruments Inventory Other Total Current Assets ,228 1,049 1,022 1,022 1,022 1,022 Oil & Gas Properties, net 1,879 3,078 3,714 4,127 5,298 6,645 7,026 7,346 7,656 7,957 7,957 9,158 Other Property and Equipment Investments in Unconsol. Affiliates Long-Term Derivative Instruments Deferred Tax Assets Other Assets Total Assets 2,379 3,623 4,760 4,770 6,017 7,903 8, ,692 8,972 9,270 9,270 10,460 Liabilities & Equity Short Term Debt Current Portion of Long Term Debt Accounts Payable Deferred Tax liability Short-Term Derivative Instruments Other Total Current Liabilities Long Term Debt ,093 1,342 1,669 1,669 1,669 1,669 1,669 1,669 Bank Debt Revolver Balance Total Debt ,093 1,342 1, ,669 1,803 1,952 1,952 2,280 Deferred Tax Liabilities ,130 1,587 1,660 1,712 1,768 1,824 1,824 2,150 Long-Term Derivative Instruments Other Liabilities Total Liabilities 933 1,966 2,242 2,429 3,053 3,934 4,402 4,454 4,644 4,849 4,849 5,503 Preferred Stock Common Stock Retained Earnings ,450 1,414 2,018 2,656 2,764 2,850 2,941 3,034 3,034 3,569 Treasury Stock - (5) (5) (4) (3) (2) (2) (2) (2) (2) (2) (2) Accum. Other Compre. Income Minority Interest Total Shareholders' Equity 1,446 1,657 2,518 2,341 2,965 3,969 4,152 4,237 4,329 4,422 4,422 4,957 Total Liabilities & Equity 2,379 3,623 4,760 4,770 6,017 7,903 8,554 8,692 8,972 9,270 9,270 10,460 6

7 Southwestern Energy Quarterly Financial Statements Hsulin Peng, Analyst, Consolidated Cash Flow Statement ($ Millions Except Per Share Data) FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 Q1 Q2E Q3E Q4E 2012E 2013E Cash Flow from Operations Net Income (Loss) (36) DD&A Abandonment and Impairment Deferred Income Tax Exp (Benefit) Exploration costs Deferred and Stock-Based Comp Non-Cash Minority Interest (1) (1) Loss (Gain) on Derivatives Instruments 6 (7) 5 5 (4) (0) (7) (7) - Loss (Income) from Equity Earnings (1) Loss (Gains) on Sale of Assets (10) - (57) Loss (Income) from Discontinued Op Amortization of Deferred Fin. Costs Net Change in Other Operating Activ. (1) (2) Change in Working Capital: - - (Increase) Decrease in AR (2) (76) (60) (9) (88) (Increase) Decrease in Inv. and Other (10) (11) (39) 12 5 (13) Increase (Decrease) in AP (22) Increase (Decrease) Accru. Lab. and Other 8 (2) 22 (63) 81 (34) CFO - Continuing Operations ,161 1,359 1,643 1, ,504 1,776 CFO - Discontinued Operations Total CFO ,161 1,359 1,643 1, ,504 1,776 Cash Flow from Investing Acquisitions of Oil and Gas Properties Expl. and Devlop. of Oil and Gas Prop. (851) (1,519) (1,756) (1,780) (2,073) (2,184) (558) (516) (516) (516) (2,105) (2,105) Additions to Other PP&E Investing activities of Disc. Ops Equity Investments Proceeds from Oil & Gas Asset Disposal Proceeds from Other Asset Disposal Net Change in Other Investing Activ. 1 0 (0) (1) (3) CFI - Continuing Operations (630) (1,513) (792) (1,781) (1,726) (2,025) (555) (516) (516) (516) (2,103) (2,105) CFI - Discontinued Operations Total CFI (630) (1,513) (792) (1,781) (1,726) (2,025) (555) (516) (516) (516) (2,103) (2,105) Cash Flow from Financing Credit Facility Proceeds (Payments) (1) (1) (1) (61) (1) 25 (672) (672) - LT Debt Proceeds (Payments) (242) Common Equity Issuance Share Repurchases Common Dividends Paid Preferred Dividends Paid Deferred Financing Costs (2) (9) - - (10) (8) (8) - Net Change in Other Financing Activ (25) (10) 21 (18) (18) - Treasury Stock Purchase Total CFF (174) Beginning Cash Balance Net Change in Cash Flow (181) (41) 194 (183) 3 (0) 191 (179) (161) (149) (298) (329) Cash Balance Before Revolver (134) (149) (282) (329) Revolver Ending Cash Balance

8 Appendix - Important Disclosures and Analyst Certification Rating and Price Target History for: Southwestern Energy Company (SWN) as of /17/11 I:N:$41 03/01/11 N:$43 04/21/11 N:$44 04/29/11 N:$46 07/18/11 N:$47 08/12/11 O:$45 01/11/12 N:$39 03/01/12 N:$37 04/11/12 N:$ Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q Created by BlueMatrix 1 Incorporated makes a market in the securities of SWN. Incorporated and/or its affiliates expect to receive or intend to seek investment banking related compensation from the company or companies mentioned in this report within the next three months. Incorporated may not be licensed to execute transactions in all foreign listed securities directly. Transactions in foreign listed securities may be prohibited for residents of the United States. Please contact a Baird representative for more information. Investment Ratings: Outperform (O) - Expected to outperform on a total return, risk-adjusted basis the broader U.S. equity market over the next 12 months. Neutral (N) - Expected to perform in line with the broader U.S. equity market over the next 12 months. Underperform (U) - Expected to underperform on a total return, risk-adjusted basis the broader U.S. equity market over the next 12 months. Risk Ratings: L - Lower Risk - Higher-quality companies for investors seeking capital appreciation or income with an emphasis on safety. Company characteristics may include: stable earnings, conservative balance sheets, and an established history of revenue and earnings. A - Average Risk - Growth situations for investors seeking capital appreciation with an emphasis on safety. Company characteristics may include: moderate volatility, modest balance-sheet leverage, and stable patterns of revenue and earnings. H - Higher Risk - Higher-growth situations appropriate for investors seeking capital appreciation with the acceptance of risk. Company characteristics may include: higher balance-sheet leverage, dynamic business environments, and higher levels of earnings and price volatility. S - Speculative Risk - High-growth situations appropriate only for investors willing to accept a high degree of volatility and risk. Company characteristics may include: unpredictable earnings, small capitalization, aggressive growth strategies, rapidly changing market dynamics, high leverage, extreme price volatility and unknown competitive challenges. Valuation, Ratings and Risks. The recommendation and price target contained within this report are based on a time horizon of 12 months but there is no guarantee the objective will be achieved within the specified time horizon. Price targets are determined by a subjective review of fundamental and/or quantitative factors of the issuer, its industry, and the security type. A variety of methods may be used to determine the value of a security including, but not limited to, discounted cash flow, earnings multiples, peer group comparisons, and sum of the parts. Overall market risk, interest rate risk, and general economic risks impact all securities. Specific information regarding the price target and recommendation is provided in the text of our most recent research report. Distribution of Investment Ratings. As of April 30, 2012, Baird U.S. Equity Research covered 669 companies, with 53% rated Outperform/Buy, 46% rated Neutral/Hold and 1% rated Underperform/Sell. Within these rating categories, 13% of Outperform/Buy-rated and 7% of Neutral/Hold-rated companies have compensated Baird for investment banking services in the past 12 months and/or Baird managed or co-managed a public offering of securities for these companies in the past 12 months. Analyst Compensation. Analyst compensation is based on: 1) The correlation between the analyst's recommendations and stock price performance; 2) Ratings and direct feedback from our investing clients, our sales force and from independent rating services; and 3) The analyst's productivity, including the quality of the analyst's research and the analyst's contribution to the growth and development of our overall research effort. This compensation criteria and actual compensation is reviewed and approved on an annual basis by Baird's Research Oversight Committee. Analyst compensation is derived from all revenue sources of the firm, including revenues from investment banking. Baird does not compensate research analysts based on specific investment banking transactions. A complete listing of all companies covered by Baird U.S. Equity Research and applicable research disclosures can be accessed at You can also call or write:, Equity Research, 24th Floor, 777 E. Wisconsin Avenue, Milwaukee, 8

9 WI Analyst Certification. The senior research analyst(s) certifies that the views expressed in this research report and/or financial model accurately reflect such senior analyst's personal views about the subject securities or issuers and that no part of his or her compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in the research report. Disclaimers Baird prohibits analysts from owning stock in companies they cover. This is not a complete analysis of every material fact regarding any company, industry or security. The opinions expressed here reflect our judgment at this date and are subject to change. The information has been obtained from sources we consider to be reliable, but we cannot guarantee the accuracy. ADDITIONAL INFORMATION ON COMPANIES MENTIONED HEREIN IS AVAILABLE UPON REQUEST The Dow Jones Industrial Average, S&P 500, S&P 400 and Russell 2000 are unmanaged common stock indices used to measure and report performance of various sectors of the stock market; direct investment in indices is not available. Baird is exempt from the requirement to hold an Australian financial services license. Baird is regulated by the United States Securities and Exchange Commission, FINRA, and various other self-regulatory organizations and those laws and regulations may differ from Australian laws. This report has been prepared in accordance with the laws and regulations governing United States broker-dealers and not Australian laws. Copyright 2012 Incorporated Other Disclosures The information and rating included in this report represent the Analyst s long-term (12 month) view as described above. Robert W. Baird & Co. Incorporated and/or its affiliates (Baird) may provide to certain clients additional or research supplemental products or services, such as outlooks, commentaries and other detailed analyses, which focus on covered stocks, companies, industries or sectors. Not all clients who receive our standard company-specific research reports are eligible to receive these additional or supplemental products or services. Baird determines in its sole discretion the clients who will receive additional or supplemental products or services, in light of various factors including the size and scope of the client relationships. These additional or supplemental products or services may feature different analytical or research techniques and information than are contained in Baird s standard research reports. Any ratings and recommendations contained in such additional or research supplemental products are consistent with the Analyst s long-term ratings and recommendations contained in more broadly disseminated standard research reports. UK disclosure requirements for the purpose of distributing this research into the UK and other countries for which Robert W. Baird Limited holds an ISD passport. This report is for distribution into the United Kingdom only to persons who fall within Article 19 or Article 49(2) of the Financial Services and Markets Act 2000 (financial promotion) order 2001 being persons who are investment professionals and may not be distributed to private clients. Issued in the United Kingdom by Robert W. Baird Limited, which has offices at Mint House 77 Mansell Street, London, E1 8AF, and is a company authorized and regulated by the Financial Services Authority. For the purposes of the Financial Services Authority requirements, this investment research report is classified as objective. Robert W. Baird Limited ("RWBL") is exempt from the requirement to hold an Australian financial services license. RWBL is regulated by the Financial Services Authority ("FSA") under UK laws and those laws may differ from Australian laws. This document has been prepared in accordance with FSA requirements and not Australian laws. Ask the analyst a question Click here to unsubscribe 9