Swift Energy Announces Record Second Quarter: Earnings Increase 37% to $38.2 Million, $1.27 Per Share; Newport Offset Well Tests over 8,000 Barrels of Oil Per Day.HOUSTON Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; -- Swift swift, common name for small, swallowlike birds related to the hummingbird and found all over the world, chiefly in the tropics. They range in size from 6 to 12 in. (15–30 cm) in length. Energy Company (NYSE NYSE See: New York Stock Exchange : SFY SFY State Fiscal Year SFY Sucks For You SFY Springfield, MA Metropolitan (airport code) ) announced today record net income of $38.2 million for the second quarter of 2006, or $1.27 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, a 37% increase compared to $27.9 million in net income, or $0.96 per diluted share, earned in the second quarter of 2005. Adjusted cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses (cash flow before working capital changes, a non-GAAP measure - see page 6 for reconciliation to net cash provided by operating activities of $99.9 million) increased 44% to $100.2 million, or $3.34 per diluted share, compared to $69.4 million, or $2.39 per diluted share, for the second quarter of 2005. Production increased 2% for the second quarter of 2006 to 16.3 billion cubic feet equivalent ("Bcfe") from the 15.9 Bcfe produced in the second quarter of 2005 and decreased 2% from the 16.6 Bcfe produced in the first quarter of 2006. Second quarter 2006 production included record domestic production of 13.1 Bcfe, a 10% increase, and 3.2 Bcfe produced in New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. , a 20% decrease, in both cases when compared to production in the same period in 2005. Terry Swift, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Swift Energy, commented, "As a result of our domestic production increases, 65% of Swift Energy's second quarter production is liquid hydrocarbons hydrocarbons (hīˈ·drō·kärˑ·b  nz),n. , crude oil and natural gas liquids. With today's elevated crude oil prices and this production mix, we expect to deliver record results in the second half of 2006. Swift Energy should meet its guidance for production growth of 14% to 18% and make 2006 another year of excellent financial performance for the Company, adding value for our shareholders. "The Newport Newport, town, England Newport, town (1991 pop. 19,758), Isle of Wight, S England. It is also a port and the commercial center of the island, with agricultural markets and light industries (plastics, soft drinks, and woodworking). In the 17th cent. prospect in Lake Washington Lake Washington is the second largest natural lake in state of Washington (after Lake Chelan) and the largest lake in King County. It is bordered by the cities of Seattle on the west, Bellevue and Kirkland on the east, Renton on the south and Kenmore on the north, and surrounds continues to yield excellent results. The third well, the SL 17990 #10 well, initially tested over 8,000 barrels of oil per day from one sand interval interval, in music, the difference in pitch between two tones. Intervals may be measured acoustically in terms of their vibration numbers. They are more generally named according to the number of steps they contain in the diatonic scale of the piano; e.g. on a short term production test on 50/64-inch choke (jargon) choke - To fail to process input or, more generally, to fail at any endeavor. E.g. "NULs make System V's "lpr(1)" choke." See barf, gag. . During final production testing, the SL 17990 #10 well flowed over 3,600 barrels of oil per day on a 24/64-inch choke. A fourth well, the SL 17990 #8 well, encountered approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 100 feet of net pay, which was downdip of the second Newport well (SL 17990 #3)." Six-Month Results for 2006 Through the first six months of 2006, Swift Energy had record production totaling 32.9 Bcfe, an increase of 5% from 31.4 Bcfe produced last year for the same period. Total revenues for the first six months of 2006 were $283.3 million, up 42% from $199.9 million during the same period last year. During the first half of 2006, net income increased 41% to $75.5 million ($2.52 per diluted share) from $53.6 million ($1.86 per diluted share) in the first half of 2005. Cash flow before changes in working capital (a non-GAAP measure, see reconciliation on page 6) increased 43% in the first half of 2006 to $191.8 million ($6.39 per diluted share) from $134.5 million ($4.66 per diluted share) in the same period in 2005. Net cash provided by operating activities for the first half of 2006 increased 42% to $183.8 million ($6.13 per diluted share) from $129.3 million ($4.48 per diluted share) in the 2005 period. Increased revenues, net income and cash flow in 2006 are primarily the result of higher commodity prices and our overall increased levels of production. Revenues and Expenses Total revenues for the second quarter of 2006 increased 41% to $147.2 million from the $104.3 million of revenues generated in the second quarter of 2005. This increase is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to higher commodity prices and increased levels of domestic crude oil production. Lease operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , before severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and ad valorem taxes Ad Valorem Tax A tax based on the assessed value of real estate or personal property. In other words ad valorem taxes can be property tax or even duty on imported items. Property ad valorem taxes are the major source of revenues for state and municipal governments. , were $1.14 per thousand cubic feet equivalent ("Mcfe") in the second quarter of 2006, an increase of 57% compared to $0.73 per Mcfe for these expenses in the second quarter of 2005. The second quarter 2006 increase was predominately due to continuing hurricane hurricane, tropical cyclone in which winds attain speeds greater than 74 mi (119 km) per hr. Wind speeds reach over 190 mi (289 km) per hr in some hurricanes. repair expenses incurred due to damage from Hurricanes Katrina KATRINA Keeping All the Resources in New Orleans Alive KATRINA Krewe Aiding Trash Removal In the New Orleans Area and Rita, plus continued increased costs across the board due to high demand for services and equipment in the industry. General and administrative expenses increased to $0.47 per Mcfe during the second quarter 2006 from $0.31 per Mcfe in the same period in 2005. This increase was primarily attributable to expensing of stock-based incentive compensation under SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 123(R), which first went into effect January January: see month. 2006, and to the expansion in our workforce. Depreciation, depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able and amortization expense of $2.39 per Mcfe in the second quarter 2006 increased from $1.81 per Mcfe in the comparable period in 2005, primarily as a result of increased estimates for future development costs and additional capital expenditures during the last twelve months. Interest expense per unit decreased 10% to $0.36 per Mcfe in the second quarter 2006 compared to $0.40 per Mcfe for the same period in 2005. Also, severance and ad valorem taxes in the second quarter of 2006 were up appreciably ap·pre·cia·ble adj. Possible to estimate, measure, or perceive: appreciable changes in temperature. See Synonyms at perceptible. to $0.98 per Mcfe from $0.67 per Mcfe in the comparable period in 2005 due to higher commodity prices and increased crude oil production in Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. .Production & Pricing Swift Energy's record second quarter 2006 production totaled 16.3 Bcfe, an increase of 2% from the 15.9 Bcfe produced in the same quarter of 2005 but a decrease of 2% when compared to production in the first quarter of 2006. Second quarter 2006 domestic production increased 10% to a record 13.1 Bcfe from the 12.0 Bcfe produced in the same quarter in 2005, primarily due to increased production from the South Louisiana region. Second quarter domestic production was also 3% higher than comparable production in the first quarter 2006 principally due to the return to production of Cote Blanche Cote Blanche is a place located in St. Mary parish, Louisiana, United States. It is an "island" or an elevated mound rising about 25 meters above the surrounding Holocene coastal marshes at the shore of Vermillion Bay, which in turn opens onto the Gulf of Mexico. Island following hurricane repairs and increased production from the Lake Washington area. Second quarter 2006 New Zealand production of 3.2 Bcfe decreased 20% from production in the same quarter in 2005 and decreased 17% from levels in the previous quarter due to reduced (only two) crude oil liftings in the second quarter 2006, scheduled facility maintenance and natural production declines. Crude oil production and sales volumes in New Zealand are recognized at their sales point, as these volumes are loaded into tankers at the port. In the second quarter of 2006, Swift Energy realized an aggregate global average price of $8.91 per Mcfe, an increase of 35% from second quarter 2005 price levels, when the global price averaged $6.60 per Mcfe. Domestically, the Company realized an aggregate average price of $10.02 per Mcfe, an increase of 33% over the $7.53 received in the second quarter of 2005. In the second quarter of 2006, average domestic crude oil prices increased 38% to $69.40 per barrel barrel: see English units of measurement. from $50.21 per barrel realized in the same period in 2005. For the same periods, average domestic natural gas prices were essentially unchanged at $6.12 per thousand cubic feet ("Mcf"). Prices for natural gas liquids ("NGL NGL - A dialect of IGL. ") domestically averaged $40.85 per barrel in the second quarter, a 59% increase over second quarter 2005 NGL prices. In New Zealand, Swift Energy realized an average price of $4.32 per Mcfe in the second quarter 2006, a 14% increase over the $3.79 average received in the second quarter 2005. The Company's New Zealand based McKee McKee is a common surname of Irish origin. It comes from the Irish language Mac Aoidh. Many people have the last name McKee, and many things have been named after these people. blend “Blending” redirects here. For alpha blending, see Alpha compositing. In linguistics, a blend is a word formed from parts of two other words. These parts are sometimes, but not always, morphemes. crude oil sold for an average $73.90 per barrel compared to $50.82 per barrel in the same period in 2005. Meanwhile, the Company had an average realized price of $2.83 per Mcf for its New Zealand natural New Zealand Natural is a chain of franchise ice cream and juice shops in shopping centres in Australia, New Zealand and other countries. The products were developed in Christchurch, New Zealand, and use New Zealand milk but the company is based in Sydney, Australia. gas in the second quarter of 2006, a 7% decrease from the $3.05 per Mcf received in the comparable 2005 period, and its NGL contracts yielded an average price of $18.14 per barrel for the second quarter 2006 compared to $19.30 per barrel in the second quarter of 2005 or a 6% decrease. The lower New Zealand natural gas and NGL prices are a function of being denominated in New Zealand dollars Noun 1. New Zealand dollar - the basic unit of money in New Zealand dollar - the basic monetary unit in many countries; equal to 100 cents , which have been declining in 2006 against the U.S. dollar. Operations Update Swift Energy successfully completed 10 of 17 wells in the second quarter of 2006. Domestically, the Company completed 10 of 11 development wells, for a success rate of 91% for the quarter. In the Company's South Louisiana region, Swift Energy successfully completed all 7 development wells drilled in the Lake Washington area in Plaquemines Parish, Louisiana Plaquemines Parish (Cajun French: Paroisse Plaquemine) is the parish with the most combined land and water area in the U.S. state of Louisiana. The parish seat is Pointe à la Hache. As of 2000, the parish's population was 26,757. . The Company successfully completed 2 of 3 development wells targeting the Olmos Olmos may refer to: Places
AWP Average Wholesale Price AWP Annual Work Plan AWP Associated Writing Programs AWP Amusement with Prizes AWP Any Willing Provider AWP Aerial Work Platform area and was unsuccessful on 4 shallow This article or section may contain original research or unverified claims. Please help Wikipedia by adding references. See the for details. This article has been tagged since October 2007. Shallow means not very deep. exploration wells targeting the Government Wells sand in the same AWP Olmos area in McMullen County, Texas McMullen County is a county located in the U.S. state of Texas. In 2000, its population was 851. Its seat is Tilden6. McMullen is named for John McMullen, founder of a colony in Texas. Geography According to the U.S. . Additionally, Swift Energy successfully drilled and completed a development well in the Brookeland Field in Newton County, Texas Newton County is the easternmost county in the U.S. state of Texas. In of 2000, its population was 15,072. Its county seat is Newton6. Newton county is named for John Newton, a veteran of the American Revolutionary War. Geography According to the U.S. . The Company's Endeavor See Endevor. Prospect in Alaska Alaska (əlă`skə), largest in area of the United States but third smallest (exceeding only Vermont and Wyoming) in population, occupying the northwest extremity of the North American continent, separated from the coterminous United States , a joint venture with Aurora Aurora, cities, United States Aurora (ərôr`ə, ô–). 1 City (1990 pop. 222,103), Adams and Arapahoe counties, N central Colo., a growing suburb on the east side of Denver; inc. 1903. Gas LLP LLP - Lower Layer Protocol , was drilled in the second quarter and was plugged and abandoned. In New Zealand, two exploration wells, the Goss n. 1. Gorse. and Trapper prospects, began testing in the second quarter of 2006. Both exploration prospects have intermediate depth objectives currently being tested; however, the deeper objectives in both wells were deemed non-commercial A non-commercial enterprise is work that values other considerations above and beyond that of making a profit. It differs from a non-profit enterprise in that seeking a profit is a part of their business, just not the main part. . The Company was unsuccessful with one development well that targeted the Kauri Sand in the second quarter of 2006. The third well at the Newport prospect (SL 17990 #10 well) was drilled in the second quarter targeting the same objectives as the SL 17990 #3 well (announced in January 2006) and was drilled deeper to test for additional objectives. This well tested at rates up to 9,205 barrels of oil equivalent per day ("boe/d") from a single sand during a short term production test. This included 8,275 barrels of oil per day and 5.5 million cubic feet of natural gas per day ("MMcf/d") with no water on a 50/64-inch choke and flowing tubing pressure of 1,850 psi PSI - Portable Scheme Interpreter . During final production testing for deliverability, the SL 17990 #10 well flowed 3,648 barrels of oil per day and 2.4 MMcf/d with a flowing tubing pressure of 2,111 psi on a 24/64-inch choke. The well was drilled to a total vertical depth of 16,488 feet and encountered approximately 217 feet of net pay in three sands. The Company's evaluation of the deeper objectives was inconclusive INCONCLUSIVE. What does not put an end to a thing. Inconclusive presumptions are those which may be overcome by opposing proof; for example, the law presumes that he who possesses personal property is the owner of it, but evidence is allowed to contradict this presumption, and show who is and will be more fully evaluated with 3-D prestack depth migration to better image the deeper horizons. The Company also drilled the SL 17990 #8 well on the Newport prospect downdip of the #3 well and encountered 108 feet of net pay. The SL 17990 #8 well is currently being completed, and both wells are expected to begin production in the third quarter of 2006. The Company plans to drill two to three more Newport wells during the second half of 2006. Swift Energy has an additional well waiting to be completed in the Lake Washington area. The Company had four barge barge, large boat, generally flat-bottomed, used for transporting goods. Most barges on inland waterways are towed, but some river barges are self-propelled. There are also sailing barges. rigs operating in the second quarter of 2006 in its southern Louisiana region, one of which has just been released for approximately 45 days and will then return to Swift Energy. At this time, one of the barge rigs is drilling in Cote Blanche Island and the remaining two are operating in the Lake Washington area. The Company recently signed a contract for a fifth barge rig that is scheduled to begin drilling late in 2006 in this region. In the third quarter of 2006, the Company also has a rig operating in the AWP Olmos area and expects to add an additional rig in the South Bearhead Creek area in Beauregard Parish, Louisiana Beauregard Parish (French: Paroisse de Beauregard) is a parish located in the U.S. state of Louisiana. The parish seat is DeRidder. As of 2000, the population was 32,986. It was named after P.G.T. . The Company has two rigs operating in New Zealand drilling the Waihapa prospect targeting the Tikorangi limestone limestone, sedimentary rock wholly or in large part composed of calcium carbonate. It is ordinarily white but may be colored by impurities, iron oxide making it brown, yellow, or red and carbon making it blue, black, or gray. The texture varies from coarse to fine. and the Kowhai kowhai Noun a small tree of New Zealand and Chile with clusters of yellow flowers [Maori] Noun 1. kowhai - shrub or small tree of New Zealand and Chile having pendulous racemes of tubular golden-yellow flowers; yields a exploration well targeting several deep horizons. Swift Energy increased its 2006 capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. budget range to a new range of $375 - $400 million from the previous range of $325 - $375 million, net of dispositions, to add several discretionary projects to its budget and to keep pace with continued cost pressures in the current high commodity price environment. Price Risk Management Swift Energy also announced that since its last price risk management update on May 3, 2006, it has continued to enter into price risk management transactions and reports the following current positions. The Company has floors that cover 900,000 barrels, or 45% to 50% of its expected third quarter crude production in the third quarter at an average NYMEX See New York Mercantile Exchange. NYMEX See New York Mercantile Exchange (NYM). strike price of $65.00 per barrel. The Company has also purchased floors that cover 900,000 barrels of crude production, or 40% to 45% of expected fourth quarter volumes, at an average NYMEX strike price of $63.77 per barrel. Future crude oil sales will include transportation charges or crude oil quality differentials that could result in price reductions ranging from $2.75 to $3.75 per barrel. Details of Swift Energy's complete price risk management activities can be found on the Company's website (www.swiftenergy.com). Earnings Conference Call Swift Energy will conduct a live conference call today, August 3, at 9:00 a.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT to discuss second quarter 2006 financial results. To participate in this conference call, dial 973-339-3086 five to ten minutes before the scheduled start time and indicate your intention to participate in the Swift Energy conference call. A digital replay of the call will be available later on August 3 through August 10, by dialing 973-341-3080 and using pin #7508692. Additionally, the conference call will be available over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the by accessing the Company's website at www.swiftenergy.com and by clicking on the event hyperlink A predefined linkage between one object and another. See hypertext. hyperlink - anchor . This webcast will be available online and archived at the Company's website. This press release includes "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. The opinions, forecasts, projections, guidance or other statements other than statements of historical fact, are forward-looking statements. These statements are based upon assumptions that are subject to change and to risks, especially the uncertainty of finding, replacing, developing or acquiring reserves; adequate availability of skilled personnel, services and supplies; hurricanes or tropical storms tropical storm n. A cyclonic storm having winds ranging from approximately 48 to 121 kilometers (30 to 75 miles) per hour. tropical storm affecting operations; and volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the in oil or gas prices. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Certain risks and uncertainties inherent in the Company's business are set forth in the filings of the Company with the Securities and Exchange Commission. Estimates of future financial or operating performance provided by the Company are based on existing market conditions and engineering and geologic ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. information available at this time. Actual financial and operating performance may be higher or lower. Future performance is dependent upon oil and gas prices, exploratory and development drilling results, hurricanes or tropical storms, engineering and geologic information and changes in market conditions.
SWIFT ENERGY COMPANY
SUMMARY FINANCIAL INFORMATION
(Unaudited)
(In Thousands Except Production, Per Share, and Price Amounts)
Three Months Six Months
Ended Ended
June 30, Percent June 30, Percent
2006 2005 Change 2006 2005 Change
---- ---- ------ ---- ---- ------
Revenues:
Oil & Gas Sales $144,994 $104,922 38% $279,947 $200,444 40%
Other 2,183 (622) NM 3,399 (523) NM
-------- --------- -------- ---------
Total Revenue $147,177 $104,300 41% $283,346 $199,921 42%
Net Income $38,168 $27,882 37% $75,483 $53,571 41%
Basic EPS $1.31 $0.98 33% $2.59 $1.90 37%
Diluted EPS $1.27 $0.96 32% $2.52 $1.86 36%
Net Cash Provided By
Operating
Activities $99,855 $64,632 54% $183,756 $129,284 42%
Net Cash Provided By
Operating
Activities, Per
Diluted Share $3.33 $2.23 49% $6.13 $4.48 37%
Cash Flow Before
Working Capital
Changes(1) (non-
GAAP measure) $100,188 $69,387 44% $191,783 $134,523 43%
Cash Flow Before
Working Capital
Changes, Per
Diluted Share $3.34 $2.39 39% $6.39 $4.66 37%
Weighted Average
Shares Outstanding
(Diluted) 30,028 29,009 4% 29,997 28,850 4%
EBITDA(1) (non-GAAP
measure) $105,069 $77,030 36% $204,403 $147,525 39%
Production (Bcfe): 16.3 15.9 2% 32.9 31.4 5%
Domestic 13.1 12.0 10% 25.9 22.9 13%
New Zealand 3.2 4.0 (20%) 7.0 8.5 (18%)
Realized Price
($/Mcfe): $8.91 $6.60 35% $8.52 $6.38 34%
Domestic $10.02 $7.53 33% $9.64 $7.27 33%
New Zealand $4.32 $3.79 14% $4.37 $3.97 10%
(1) See reconciliation on page 6. Management believes that the
non-GAAP measures EBITDA and cash flow before working capital changes
are useful information to investors because they are widely used by
professional research analysts in the valuation, comparison, rating
and investment recommendations of companies within the oil and gas
exploration and production industry. Many investors use the published
research of these analysts in making their investment decisions.
Note: Items may not total due to rounding
SWIFT ENERGY COMPANY
Reconciliation of GAAP (a) to non-GAAP Measures
(Unaudited)
(In Thousands)
Below is a reconciliation of EBITDA to Net Income and a reconciliation
of Cash Flow Before Working Capital Changes to Net Cash Provided by
Operating Activities.
Three Months Ended
June 30, June 30,
2006 2005
-------- --------
NET INCOME TO EBITDA RECONCILIATIONS:
Net Income $38,168 $27,882 37%
Provision for Income taxes 22,021 13,896
Interest Expense, Net 5,799 6,287
Depreciation, Depletion & Amortization(b) 39,080 28,965
-------- --------
EBITDA $105,069 $77,030 36%
======== ========
Six Months Ended
June 30, June 30,
2006 2005
-------- --------
Net Income $75,483 $53,571 41%
Provision for Income taxes 42,482 27,966
Interest Expense, Net 11,660 12,631
Depreciation, Depletion & Amortization
& ARO (b) 74,778 53,357
-------- --------
EBITDA $204,403 $147,525 39%
======== ========
Three Months Ended
June 30, June 30,
2006 2005
-------- --------
NET CASH FLOW RECONCILIATIONS:
Net Cash Provided by Operating Activities $99,855 $64,632 54%
Changes in Assets and Liabilities:
Increase/(Decrease) in Accounts Receivable (707) 4,721
Increase in Accounts Payable and Accrued
Liabilities (706) (1,717)
Increase in Income Taxes Payable (81) (89)
Decrease in Accrued Interest 1,827 1,840
-------- --------
Cash Flow Before Working Capital Changes $100,188 $69,387 44%
======== ========
Six Months Ended
June 30, June 30,
2006 2005
-------- --------
Net Cash Provided by Operating Activities $183,755 $129,284 42%
Changes in Assets and Liabilities:
Increase in Accounts Receivable 9,092 4,739
Increase in Accounts Payable and Accrued
Liabilities (516) (113)
Increase in Income Taxes Payable (549) (89)
Decrease in Accrued Interest 1 703
-------- --------
Cash Flow Before Working Capital Changes $191,783 $134,523 43%
======== ========
(a) GAAP--Generally Accepted Accounting Principles
(b) Includes accretion of asset retirement obligation
Note: Items may not total due to rounding
SWIFT ENERGY COMPANY
SUMMARY BALANCE SHEET INFORMATION
(Unaudited)
(In Thousands)
As of As of
June 30, 2006 December 31, 2005
------------------ -----------------
Assets:
Current Assets:
Cash and Cash Equivalents $72,074 $53,005
Other Current Assets 95,389 62,050
------------------ -----------------
Total Current Assets 167,463 115,055
Oil and Gas Properties 1,977,922 1,819,420
Other Fixed Assets 24,580 15,313
Less-Accumulated DD&A (830,555) (755,699)
------------------ -----------------
1,171,947 1,079,034
Other Assets 9,656 10,324
------------------ -----------------
$1,349,066 $1,204,413
================== =================
Liabilities:
Current Liabilities $105,781 $98,421
Long-Term Debt 350,000 350,000
Deferred Income Taxes 178,889 129,307
Asset Retirement Obligation 19,812 19,095
Lease Incentive Obligation 1,848 271
Stockholders' Equity 692,738 607,318
------------------ -----------------
$1,349,066 $1,204,413
================== =================
Note: Items may not total due to rounding
SWIFT ENERGY COMPANY
SUMMARY INCOME STATEMENT INFORMATION
(Unaudited)
In Thousands Except Per Mcfe Amounts
Three Months Six Months
Ended Ended
June 30, Per June 30, Per
2006 Mcfe 2006 Mcfe
--------- ------ --------- ------
Revenues:
Oil & Gas Sales $144,994 $8.91 $279,947 $8.52
Other Revenue 2,183 0.13 3,399 0.10
-------- ----- -------- -----
147,177 9.04 283,346 8.62
-------- ----- -------- -----
Costs and Expenses:
General and administrative, net 7,618 0.47 15,305 0.47
Depreciation, Depletion &
Amortization 38,877 2.39 74,284 2.26
Accretion of asset retirement
obligation (ARO) 203 0.01 494 0.02
Lease Operating Costs 18,523 1.14 32,918 1.00
Severance & Other Taxes 15,967 0.98 30,721 0.93
Interest Expense, Net 5,799 0.36 11,660 0.35
-------- ----- -------- -----
Total Costs & Expenses 86,988 5.34 165,381 5.03
-------- ----- -------- -----
Income before Income Taxes 60,190 3.70 117,965 3.59
Provision for Income Taxes 22,021 1.35 42,482 1.29
-------- ----- -------- -----
Net Income $ 38,168 $2.35 $ 75,483 $2.30
======== ===== ======== =====
Additional Information:
Capital Expenditures $105,893 $183,856
Capitalized Geological &
Geophysical $ 5,994 $ 11,369
Capitalized Interest Expense $ 2,200 $ 4,328
Deferred Income Tax $ 21,106 $ 41,098
Note: Items may not total due to rounding
SWIFT ENERGY COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
(In Thousands)
Six Months Ended,
June 30, June 30,
2006 2005
-------- --------
Cash Flows From Operating Activities:
Net Income $75,483 $53,571
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities -
Depreciation, Depletion, and Amortization 74,284 52,983
Accretion of Asset Retirement Obligation (ARO) 494 374
Deferred Income Taxes 41,098 27,565
Stock-based Compensation 3,241 408
Other (2,817) (379)
Change in Assets and Liabilities -
Increase in Accounts Receivable, (9,092) (4,739)
Increase in Accounts Payable and Accrued
Liabilities 516 113
Increase in Income Taxes Payable 549 89
Decrease in Accrued Interest (1) (703)
-------- --------
Net Cash Provided by Operating Activities 183,755 129,284
-------- --------
Cash Flows From Investing Activities:
Additions to Property and Equipment (183,856)(101,767)
Proceeds from the Sale of Property and Equipment 20,306 2,340
Net Cash Distributed as Operator of Oil & Gas
Properties (5,911) (3,841)
Net Cash Received as
Operator of Partnerships and Joint Ventures 226 243
Other 572 50
-------- --------
Net Cash Used in Investing Activities (168,663)(102,975)
-------- --------
Cash Flows From Financing Activities:
Net Payments of Bank Borrowings --- (7,500)
Net Proceeds from Issuance of Common Stock 3,081 3,999
Excess Tax Benefits from stock-based Awards 896 ---
-------- --------
Net Cash (used in) Provided by Financing Activities 3,977 (3,501)
-------- --------
Net Increase in Cash and Cash Equivalents 19,069 22,808
Cash and Cash Equivalents at the Beginning of the
Period 53,005 4,920
-------- --------
Cash and Cash Equivalents at the End of the Period $72,074 $27,728
======== ========
Note: Items may not total due to rounding
SWIFT ENERGY COMPANY
OPERATIONAL INFORMATION
QUARTERLY COMPARISON -- SEQUENTIAL & YEAR-OVER-YEAR
(Unaudited)
Three Months Three Months
Ended Ended
----- -----
June Mar. Percent June Percent
30, 31, Change 30, Change
2006 2006 ------ 2005 ------
---- ---- ----
Total Company Production:
Oil & Natural Gas Equivalent
(Bcfe) 16.28 16.59 (2%) 15.90 2%
Natural Gas (Bcf) 5.63 6.01 (6%) 6.09 (8%)
Crude Oil (MBbl) 1,636 1,611 2% 1,426 15%
NGL (MBbl) 138 152 (9%) 209 (34%)
Domestic Production:
Oil & Natural Gas Equivalent
(Bcfe) 13.10 12.76 3% 11.95 10%
Natural Gas (Bcf) 3.36 3.30 2% 3.20 5%
Crude Oil (MBbl) 1,554 1,487 5% 1,339 16%
NGL (MBbl) 70 90 (22%) 118 (41%)
New Zealand Production:
Oil & Natural Gas
Equivalent (Bcfe) 3.17 3.83 (17%) 3.95 (20%)
Natural Gas (Bcf) 2.27 2.71 (16%) 2.89 (21%)
Crude Oil (MBbl) 82 124 (34%) 87 (6%)
NGL (MBbl) 68 62 9% 90 (25%)
Total Company Average Prices:
Combined Oil & Natural Gas
($/Mcfe) $8.91 $8.14 9% $6.60 35%
Natural Gas ($/Mcf) $4.79 $5.38 (11%) $4.67 3%
Crude Oil ($/Bbl) $69.63 $60.83 14% $50.24 39%
NGL ($/Bbl) $29.72 $30.34 (2%) $22.95 29%
Domestic Average Prices:
Combined Oil & Natural Gas
($/Mcfe) $10.02 $9.25 8% $7.53 33%
Natural Gas ($/Mcf) $6.12 $7.42 (17%) $6.13 (0%)
Crude Oil ($/Bbl) $69.40 $60.56 15% $50.21 38%
NGL ($/Bbl) $40.85 $39.75 3% $25.74 59%
New Zealand Average Prices:
Combined Oil & Natural Gas
($/Mcfe) $4.32 $4.41 (2%) $3.79 14%
Natural Gas ($/Mcf) $2.83 $2.91 (3%) $3.05 (7%)
Crude Oil ($/Bbl) $73.90 $64.13 15% $50.82 45%
NGL ($/Bbl) $18.14 $16.68 9% $19.30 (6%)
SWIFT ENERGY COMPANY
THIRD QUARTER AND FULL YEAR 2006
GUIDANCE ESTIMATES
Actual Guidance Guidance
For For Third For Full
Second Quarter 2006 Year 2006
Quarter
2006
Production Volumes (Bcfe) 16.3 17.0 - 18.0 68.0 - 70.5
Domestic Volumes (Bcfe) 13.1 14.0 - 14.5 54.5 - 57.0
New Zealand Volumes
(Bcfe) 3.2 3.0 - 3.5 12.5 - 13.5
Production Mix:
Domestic
Natural Gas (Bcf) 3.4 3.5 - 3.7 13.5 - 14.3
Crude Oil (MBbl) 1,554 1,660 - 1,710 6,540 - 6,690
Natural Gas Liquids
(MBbl) 70 92 - 100 375 - 430
New Zealand
Natural Gas (Bcf) 2.3 1.9 - 2.3 8.4 - 9.1
Crude Oil (MBbl) 82 140 - 150 465 - 505
Natural Gas Liquids
(MBbl) 68 50 - 65 220 - 245
Product Pricing (Note 1):
Domestic Pricing:
Natural Gas (per Mcf)
NYMEX differential
(Note 2) ($0.66) ($1.00)-($1.50) ($1.25)-($2.00)
Crude Oil (per Bbl)
NYMEX differential
(Note 3) ($1.06) ($2.75)-($3.75) ($3.00)-($4.00)
NGL (per Bbl)
Percent of NYMEX Crude 58% 45% - 55% 50% - 60%
New Zealand Pricing:
Natural Gas (per Mcf)
(Note 4) $2.83 $2.75 - $3.00 $2.75 - $3.00
Crude Oil (per Bbl)
NYMEX differential
(Note 3 & 5) $3.44 ($2.50) - $0.00 ($2.50) - $0.00
NGL (per Bbl)
Contract Price
(Note 6) $18.14 $17.00 - $18.00 $17.00 - $19.00
Oil & Gas Production Costs:
Domestic
Lease Operating
Costs (per Mcfe) $1.18 $0.90 - $1.00 $0.90 - $0.95
Severance & Ad Valorem
Taxes (as % of Revenue
dollars) 11.5% 11.5% - 12.5% 10.5% - 12.0%
New Zealand
Lease Operating Costs
(per Mcfe) $0.98 $0.95 - $1.00 $0.91 - $0.96
Government Royalty (as %
of Revenue dollars) 6.3% 8.0% - 9.0% 7.0% - 9.0%
SWIFT ENERGY COMPANY
THIRD QUARTER AND FULL YEAR 2006
GUIDANCE ESTIMATES
(In Thousands Except Per Production Unit Amounts)
Actual Guidance Guidance
For For Third For Full
Second Quarter 2006 Year 2006
Quarter
2006
Other Costs:
G&A per Mcfe
(Note 7) $0.47 $0.47 - $0.52 $0.46 - $0.51
Interest Expense
per Mcfe $0.36 $0.33 - $0.37 $0.34 - $0.38
DD&A per Mcfe $2.39 $2.40 - $2.45 $2.35 - $2.40
Supplemental
Information:
Capital Expenditures
Operations $105,893 $99,500 - $109,400 $369,000 - $398,000
Acquisition/
Dispositions,
net $(19,690) $0 - $0 $(20,000- $25,000)
Capitalized G&G
(Note 8) $5,994 $5,500 - $6,000 $18,000 - $18,500
Capitalized Interest $2,200 $2,000 - $2,400 $8,000 - $8,500
Total Capital
Expenditures $97,129 $105,500 - $115,400 $375,000 - $400,000
Basic Weighted Average
Shares 29,160 29,200 - 29,700 29,200 - 30,200
Diluted Computation:
Weighted Average
Shares 30,028 30,100 - 30,700 30,100 - 31,000
Effective Tax Rate
(Note 9) 36.6% 36.0% - 37.0% 36.0% - 37.0%
Deferred Tax
Percentage 96% 75% - 85% 80% - 90%
Note 1: Swift Energy now maintains all its current price risk
management instruments (hedge positions) on its Hedge Activity
page on the Swift Energy website (www.swiftenergy.com).
Note 2: Average of monthly closing Henry Hub NYMEX futures price for
the respective contract months, included in the period, which
best benchmarks the 30-day price received for domestic natural
gas sales.
Note 3: Average of daily WTI NYMEX futures price during the calendar
period reflected which best benchmarks the daily price
received for the majority of domestic crude oil sales.
Note 4: Fixed contractual prices with major power generators in New
Zealand, subject to currency exchange rate.
Note 5: New Zealand crude oil benchmarked to TAPIS, which is typically
discounted within a $0.50 to $1.00 range of WTI NYMEX.
Note 6: Fixed contractual price with RockGas Limited in New Zealand,
subject to currency exchange rate.
Note 7: SFAS 123R has been adopted in the first quarter 2006 and is
included in G&A Guidance.
Note 8: Does not include capitalized acquisition costs, incorporated
in acquisitions when occurred.
Note 9: Effective Tax rate guidance does not include any New Zealand
currency exchange fluctuations.
This press release includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. The
opinions, forecasts, projections, guidance or other statements other
than statements of historical fact, are forward-looking statements.
These statements are based upon assumptions that are subject to change
and to risks, especially the uncertainty of finding, replacing,
developing or acquiring reserves; adequate availability of skilled
personnel, services and supplies, hurricanes or tropical storms
affecting operations, and volatility in oil or gas prices. Although
the Company believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance
that such expectations will prove to have been correct. Certain risks
and uncertainties inherent in the Company's business are set forth in
the filings of the Company with the Securities and Exchange
Commission. Estimates of future financial or operating performance
provided by the Company are based on many factors, including existing
market conditions and engineering and geologic information available
at this time. Actual financial and operating performance may be higher
or lower. Future performance is dependent upon oil and gas prices,
exploratory and development drilling results, hurricanes and tropical
storms, engineering and geologic information and changes in market
conditions.
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