-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WPy9K8yCh2VShiNVtjZT1tnsWdIabiJNsobyWhvANdcSQKM/M0pjQs1962nGRQvR Je/PiVDe7wiE2GX3N3vl5w== 0000351817-05-000008.txt : 20050217 0000351817-05-000008.hdr.sgml : 20050217 20050217140503 ACCESSION NUMBER: 0000351817-05-000008 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041231 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050217 DATE AS OF CHANGE: 20050217 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SWIFT ENERGY CO CENTRAL INDEX KEY: 0000351817 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 742073055 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08754 FILM NUMBER: 05623583 BUSINESS ADDRESS: STREET 1: 16825 NORTHCHASE DR STE 400 CITY: HOUSTON STATE: TX ZIP: 77060 BUSINESS PHONE: 2818742700 MAIL ADDRESS: STREET 1: 16825 NORTHCHASE DRIVE STREET 2: SUITE 400 CITY: HOUSTON STATE: TX ZIP: 77060 8-K 1 form8k2_17-05.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (or Date of Earliest Event Reported): February 17, 2005 SWIFT ENERGY COMPANY (Exact name of Registrant as specified in its charter) TEXAS 1-8754 74-2073055 (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 16825 Northchase Drive, Suite 400 Houston, Texas 77060 (Address of principal executive offices) (281) 874-2700 (Registrant's telephone number) Not Applicable (Former Name or former address, if changed since last report) Item 2.02 Results of Operations and Financial Condition --------------------------------------------- On February 17, 2005, Swift Energy Company issued a press release announcing, among other things, its fourth quarter and full year 2004 earnings. The press release is attached to this report as Exhibit 99.1. Swift Energy Company does not intend for Items 2.02, 9.01 or Exhibit 99.1 to be incorporated by reference into its filings under the Securities Exchange Act of 1934. Item. 9.01 Financial Statement and Exhibits -------------------------------- (c) Exhibit. The following exhibit is filed with this report on Form 8-K:
Exhibit No. Exhibit Description ----------- ------------------- 99.1 Swift Energy Company press release dated February 17, 2005.
The information furnished under Items 2.02 and 9.01 of this current report on Form 8-K, including Exhibit 99.1, shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any reigstration statement filed under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: February 17, 2005 Swift Energy Company By:/s/ Bruce H. Vincent ------------------------------ Bruce H. Vincent President and Secretary EXHIBIT INDEX Exhibit No. Description 99.1 Press Release of Swift Energy Company dated February 17, 2005 EX-99 2 ex998k2_17-05.txt PRESS RELEASE SWIFT ENERGY ANNOUNCES: - ---------------------- REPORTS RECORD FOURTH QUARTER EARNINGS OF; ----------------------------------------- $26.8 MILLION, AN $182% INCREASE, OR $0.93 PER DILUTED SHARE; ------------------------------------------------------------ AND RECORD 2004 NET INCOME OF $68.5 MILLION ------------------------------------------- HOUSTON, February 17, 2005 - Swift Energy Company (NYSE: SFY) announced today that net income for the fourth quarter of 2004 increased 182% to a record $26.8 million, or $0.93 per diluted share, compared to net income of $9.5 million, or $0.34 per diluted share, for the fourth quarter 2003. For the full-year 2004, Swift Energy saw net income increase 100% to a record $68.5 million, or $2.42 per diluted share, compared to $34.3 million ($1.24 per diluted share) in 2003 before a change in accounting principles. Before giving effect to the early debt retirement expenses amounting to $9.5 million ($6.1 million or $0.22 per diluted share after-tax), full-year net income increased 118% to $74.6 million, or $2.63 per diluted share. (See GAAP to Non-GAAP reconciliation for Net Income on page 8). As previously announced, Swift Energy had record 2004 production, which increased approximately 10% to 58.3 Billion cubic feet equivalent ("Bcfe"), with 42.1 Bcfe produced domestically and 16.3 Bcfe produced in New Zealand. This compares to 2003 production of 53.2 Bcfe (33.8 Bcfe domestic, 19.4 Bcfe New Zealand). Terry Swift, CEO, commented, "Swift Energy just completed its 25th anniversary year. We set new records and are planning to initiate new opportunities in 2005. Swift Energy will begin to evaluate strategic exploration potential in two of our growth areas, Southern Louisiana and New Zealand. In Lake Washington, Swift Energy will test several 3-D generated prospects while continuing with our highly successful exploitation activities in the area, including our first activity in the newly acquired Cote Blanche Island and Bay de Chene fields. In New Zealand, Swift Energy New Zealand will undertake a very meaningful exploration program with four to five exploration prospects being drilled in 2005. We believe that Swift's projected production growth in 2005 along with a strong commodity environment should provide another good year for shareholders." -more- Revenues and Expenses Total revenues for the fourth quarter of 2004 increased 86% to a record $98.9 million from the $53.1 million of revenues generated in the fourth quarter of 2003. Total revenues for the full year 2004 were also record setting at $310.3 million, up 49% from $208.9 million of revenues in 2003. Swift Energy's increased revenues for the fourth quarter and full year 2004 are attributable to higher commodity prices and increased levels of production. Lease operating expenses, before severance and ad valorem taxes, were $0.71 per thousand cubic feet equivalent ("Mcfe") in 2004, an increase of 13% compared to $0.63 per Mcfe in 2003. The increase was predominately due to increased compression and chemical costs in Lake Washington and also due to higher currency exchange rates in New Zealand. General and administrative expenses increased to $0.30 per Mcfe during 2004 from $0.27 per Mcfe in 2003. This increase was primarily attributable to expenses related to ongoing Sarbanes-Oxley compliance initiatives. Depreciation, depletion and amortization expense was $1.40 per Mcfe in 2004 compared to $1.19 per Mcfe in 2003, and interest expense was $0.47 per Mcfe compared to $0.51 per Mcfe for the same periods. Also, severance and ad valorem taxes were up appreciably to $0.52 per Mcfe from $0.36 per Mcfe due to higher commodity prices and the higher severance tax rates on crude oil from our increased crude oil production in Louisiana. Production & Pricing For 2004, total production increased 10% to 58.3 Bcfe from 53.2 Bcfe in 2003. Domestically, 2004 production increased by 25% to 42.1 Bcfe compared to 33.8 Bcfe produced in 2003. New Zealand accounted for 28% of corporate production with 16.3 Bcfe produced in 2004, a decrease of 16% from the 19.4 Bcfe produced there in 2003. Total fourth quarter 2004 production of 15.9 Bcfe increased 19% from the 13.4 Bcfe produced in the same quarter of 2003 and increased 14% when compared to production in the immediately preceding quarter of 2004. Fourth quarter 2004 domestic production increased to 11.3 Bcfe, an increase of 28% from the 8.8 Bcfe produced in the same quarter in 2003, and 11% when compared to production in the third quarter 2004, primarily due to increased production from the Lake Washington area. Fourth quarter 2004 New Zealand production of 4.6 Bcfe increased 1% from production in the same quarter in 2003 and increased 23% from levels in the previous quarter. In 2004, Swift Energy realized substantially higher commodity prices with average domestic crude oil prices increasing 34% to $40.04 per barrel from $29.95 per barrel realized in 2003. Meanwhile, average domestic natural gas prices of $5.74 per thousand cubic feet ("Mcf") increased 13% from the $5.07 per Mcf domestic average in 2003. Prices for natural gas liquids ("NGL") domestically averaged $24.84 per barrel in 2004, a 26% increase over the 2003 NGL prices. In New Zealand, Swift Energy realized an average natural gas price of $2.38 per Mcf for 2004 under its long-term contracts, a 30% increase over the $1.83 per Mcf received in 2003. Also in New Zealand, the Company's McKee blend crude oil sold for an average $42.15 per barrel, while its NGL contracts yielded an average price of $17.96 per barrel for the year 2004. New Zealand natural gas and the NGL price contracts are denominated in New Zealand dollars, which has continued to strengthen during 2004 against the U.S. dollar. -more- In the fourth quarter of 2004, Swift Energy realized an aggregate global average price of $6.23 per Mcfe, an increase of 57% from fourth quarter 2003 price levels, when the price averaged $3.97 per Mcfe. Domestically, the Company realized an aggregate average price of $7.17 per Mcfe, an increase of 56% over the $4.59 received in the fourth quarter of 2003. In New Zealand, the Company received an aggregate average price of $3.93 per Mcfe for the fourth quarter in 2004, an increase of 41% over the $2.78 per Mcfe realized in the same 2003 period. This was mainly attributable to a 53% increase in the crude oil price to $47.57 for the fourth quarter 2004 compared to prices during the same period in 2003 and a 33% increase in the average realized natural gas price of $2.86 per Mcf for the fourth quarter of 2004 compared to the $2.15 realized in the same period of 2003. 2004 Reserves and Capital Spending Year-end 2004 proved reserves of 800 Bcfe were 49% crude oil, 40% natural gas and 11% NGLs, compared to year-end 2003 proved reserves of 820 Bcfe, which were 47% crude oil, 41% natural gas, and 12% NGLs. Proved developed reserves dropped slightly to 56% of total reserves at year-end 2004 due to the previously discussed year-end acquisition which consisted of predominately proved undeveloped reserves, compared to 59% at the previous year-end. The majority of proved undeveloped reserves at year-end 2004 were located in the Lake Washington area (15% of total reserves) and in the AWP Olmos area (8% of total reserves), both of which are characterized as long reserve life fields. Domestic proved reserves increased at year-end 2004 to 653 Bcfe, driven mainly by the reserves increase in the Lake Washington Field, which increased 5% to 272 Bcfe (45 million barrels of oil equivalent) up from 261 Bcfe (43.5 million barrels of oil equivalent) at year-end 2003. Domestic proved reserves at year-end were 52% crude oil, 37% natural gas and 11% NGLs. Domestic proved reserves, making up 82% of total proved reserves at year-end 2004, are located in the Lake Washington area (34% of total reserves), AWP Olmos area (24% of total reserves), Masters Creek area (7% of total reserves), Brookeland area (6% of total reserves), recently acquired Bay de Chene and Cote Blanche Island areas (6% of total reserves), and other domestic properties (5% of total reserves). In New Zealand, 2004 year-end proved reserves decreased 16% to 147 Bcfe, 58% of which are categorized as proved developed reserves. New Zealand reserves constitute 18% of the Company's total proved reserves with 13% of total reserves attributable to the Rimu/Kauri area and 5% to the TAWN area. New Zealand proved reserves consist 55% natural gas, 35% crude oil and 10% NGLs. Capital Expenditures in 2004 were $192.0 million, with $155.5 million spent domestically and $36.5 million spent in New Zealand. Operations Update Swift Energy successfully completed 52 of 66 wells in 2004. Domestically, the Company completed 37 of 44 development wells for a success rate of 84% and completed 4 of 10 exploration wells. A total of 30 wells were drilled in Lake Washington area and 15 wells in the AWP Olmos area. In New Zealand, the Company completed 11 of 12 wells, consisting of 5 Kauri sand wells drilled, 5 of 6 Manutahi sand wells and one Tariki-D1 well. -more- To date in the first quarter of 2005, the Company has completed 4 of 6 wells successfully in the Lake Washington area. The Company currently has two rigs operating in Lake Washington and is scheduled to have a rig moved to the AWP Olmos area next week. In New Zealand, the Company is currently drilling the Kauri-E8 well and was unsuccessful on a shallow exploration well on petroleum exploration permit 38742 in the first quarter of 2005. It should also be noted that Swift Energy's recently acquired interests at Cote Blanche Island are currently shut-in but expected to resume production early in the second quarter. This field was shut-in just prior to the acquisition due to a supply disruption in natural gas for the gas-lift system. Efforts are currently underway to restore this gas supply as well as arrange for additional markets for future natural gas production in excess of that needed for gas-lift. Production at the time of shut-in was averaging approximately 500 barrels of oil equivalent per day. Swift Energy also shut-in Bay de Chene field for approximately two weeks immediately after closing for certain facility upgrades that were deemed important with respect to safety and environmental risks. The Bay de Chene field is back in operation, while Cote Blanche Island field is awaiting restoration of the natural gas supply for gas lift operations in the field. Price Risk Management Swift Energy also announced that since its last price risk management update on November 4, 2004, it has continued to enter into price risk management transactions and reports the following current positions. The Company now has approximately 30% to 35% of its currently estimated domestic crude oil barrels protected for the first quarter 2005. This protection consists of a $37.00 per barrel floor and several forward sales transactions with an average NYMEX strike price of $48.25 per barrel. The Company has approximately 4% to 8% of its second quarter domestic crude oil sold at an average NYMEX strike price of $49.95 per barrel. These NYMEX crude oil strike prices do not take into account transportation charges or crude oil quality differentials that could result in price reductions ranging from $2.00 to $3.00 per barrel. For natural gas, Swift Energy has purchased floors covering 35% to 40% of the Company's currently estimated first quarter 2005 domestic natural gas at an average NYMEX strike price of $6.20 per Mcf. The Company has approximately 50% to 55% of its domestic natural gas protected with floors in the second quarter of 2005 at an average NYMEX strike price of $5.68 per Mcf and approximately 35% to 40% of third quarter 2005 production covered by floors at an average NYMEX strike prices of $5.56 per Mcf. For the fourth quarter of 2005, the Company has floors protecting approximately 15% to 20% of its domestic natural gas volumes at an average NYMEX strike of $5.63 per Mcf. Details of Swift Energy's complete price risk management activities can be found on the Company's website. Earnings Conference Call Swift Energy will conduct a live conference call today, February 17, at 8:30 a.m. CST to discuss fourth quarter and full year 2004 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 February 17 until February 25, by dialing 973-341-3080 and using pin #5652029. Additionally, the conference call will be available over the Internet by accessing the Company's website at www.swiftenergy.com and by clicking on the event hyperlink. This webcast will be available online and archived at the Company's website. -more- Analyst Meeting Swift Energy will also be hosting its 2005 Annual Analyst/Investor Meetings in a series of meetings with financial analysts, portfolio managers and investors beginning Tuesday, February 22 in Houston and continuing on Wednesday, February 23, in New York City and concluding on Thursday, February 24 in Boston. At each meeting, members of Swift Energy's management team will provide an annual briefing that will include an update on certain 2004 results as well as cover the operational and financial plans and guidance for the first quarter and full year 2005. An audio (listen-only) webcast of the Houston presentation, accompanied by slides, will be broadcast on February 22 with a slight time delay, accessible on the Company's website www.swiftenergy.com by clicking on the event hyperlink. The meeting in Houston will begin at 8:00 a.m. CST on Tuesday February 22 and is being held at the Wyndham Greenspoint Hotel at 12400 Greenspoint Drive, Houston, Texas. The meeting in New York City will begin at 8:00 a.m. EST on Wednesday, February 23 at the Four Seasons Hotel on 57th Street. The meeting in Boston will begin at 10:00 a.m. EST on Thursday, February 24, at the Langham Hotel on Franklin Street. Anyone interested in attending any of these meetings should contact the Company's Investor Relations Department at 1-800-777-2412. Celebrating its 25th anniversary in 2004 and headquartered in Houston, Swift Energy engages in developing, exploring, acquiring and operating oil and gas properties, with a focus on onshore and inland waters oil and natural gas reserves in Louisiana and Texas and onshore oil and natural gas reserves in New Zealand. The Company has consistently shown long-term growth in its proved oil and gas reserves, production and cash flow through a disciplined program of acquisitions and drilling, while maintaining a strong financial position. This material 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 volatility in oil or gas prices, and availability of services and supplies. 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 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, engineering and geologic information and changes in market conditions. Swift Energy is in the process of drafting its Form 10-K, which the Company expects to be filed by March 15, 2005. As a result, the financial information contained herein should be considered preliminary until such time as the Company receives its financial statement and internal controls audit reports from its external auditor and files its Form 10-K for the year ended December 31, 2004. -more-
SWIFT ENERGY COMPANY SUMMARY FINANCIAL INFORMATION (Unaudited) (In Thousands Except Production, Per Share, and Price Amounts) Three Months Ended Year Ended December 31, December 31, 2004 2003 2004 2003 ---- ---- Percent ---- ---- Percent Change Change ------- ------- Revenues: Oil & Gas Sales $ 98,854 $ 53,186 86% $ 311,285 $ 211,033 48% Other 81 (55) 248% (1,008) (2,132) 53% --------- --------- -------- -------- Total Revenue $ 98,935 $ 53,131 86% $ 310,277 $ 208,901 49% Net Income Before Accounting Change $ 26,834 $ 9,502 182% $ 68,451 $ 34,271 100% Basic EPS Before Accounting Change $ 0.96 $ 0.35 176% $ 2.46 $ 1.25 96% Diluted EPS Before Accounting Change $ 0.93 $ 0.34 174% $ 2.42 $ 1.24 94% SFAS 143 Accounting Change --- --- -- $ (4,377) NM Per Share --- --- -- $ (0.16) NM Net Income $ 26,834 $ 9,502 182% $ 68,451 $ 29,894 129% Basic EPS $ 0.96 $ 0.35 176% $ 2.46 $ 1.09 125% Diluted EPS $ 0.93 $ 0.35 174% $ 2.42 $ 1.08 123% Net Cash Provided By Operating Activities $ 56,163 $ 26,805 110% $ 182,583 $ 110,827 65% Net Cash Provided By Operating Activities, Per Diluted Share $ 1.96 $ 0.96 103% $ 6.44 $ 4.02 60% Cash Flow Before Working Capital Changes(1) (non-GAAP measure) $ 64,667 $ 29,384 120% $ 192,320 $ 115,441 67% Cash Flow Before Working Capital Changes, Per Diluted Share $ 2.25 $ 1.06 113% $ 6.79 $ 4.19 62% Weighted Average Shares Outstanding 28,046 27,452 2% 27,822 27,358 2% EBITDA(1) (non-GAAP measure) $ 72,268 $ 36,125 100% $ 211,338 $ 141,937 49% Production (Bcfe): 15.9 13.4 19% 58.3 53.2 10% Domestic 11.3 8.8 28% 42.1 33.8 25% New Zealand 4.6 4.6 1% 16.3 19.4 (16%) Realized Price ($/Mcfe): $6.23 $3.97 57% $5.34 $3.97 34% Domestic $7.17 $4.59 56% $6.15 $4.86 26% New Zealand $3.93 $2.78 41% $3.24 $2.42 34% (1) See reconciliation on page 8. 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.
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SWIFT ENERGY COMPANY SUPPLEMENTAL RESERVE INFORMATION (Unaudited) (In Bcfe) Total Domestic New Zealand Proved Reserves as of Dec. 31, 2003 820.4 644.4 175.9 Revisions of previous estimates (10.0) 2.6 (12.6) Purchases of minerals in place 43.4 43.4 -- Sales of minerals in place (2.8) (2.8) -- Extensions, discoveries, and other additions 7.2 7.2 -- Production (58.3) (42.1) (16.3) ------------- ---------- ----------- Proved Reserves as of Dec. 31, 2004 799.9 652.7 147.1
SWIFT ENERGY COMPANY 2004 COSTS INCURRED (Unaudited) (In Thousands) Total Domestic New Zealand Acquisition of proved properties $ 31,771 $ 31,771 $ -- Lease acquisitions and prospect costs 34,545 27,713 6,832 Exploration 17,430 16,715 715 Development 105,947 78,163 27,784 --------- ---------- --------- Total acquisition, exploration and development $ 189,694 $ 154,362 $ 35,332 --------- ---------- --------- Processing plants $ 1,284 $ 147 $ 1,136 Field compression facilities 1,028 1,028 -- --------- ---------- --------- Total plants and facilities $ 2,312 1,175 $ 1,136 --------- ---------- --------- Total Costs Incurred $ 192,006 $ 155,538 $ 36,468 ========= ========== =========
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SWIFT ENERGY COMPANY Reconciliation of Net Income (GAAP measure) to Net Income Before Debt Retirement Expense (Non-GAAP Measure) (Unaudited) (In Thousands) Year Ended, December 31, ------------ 2004 ---- Net Income $ 68,451 Debt Retirement Expense 9,536 Tax effect of Debt Retirement Expense (3,433) -------- Net Income Adjusted for Debt Retirement Expense $ 74,554 EPS Basic, After Debt Retirement Expense $2.46 EPS Diluted, After Debt Retirement Expense $2.42 EPS Basic, Before Debt Retirement Expense (1) $2.68 EPS Diluted, Before Debt Retirement Expense (1) $2.63 (1) Management believes that the non-GAAP measures of net income and EPS excluding non-recurring costs or gains, such as debt retirement costs, are useful information to investors because such non-recurring costs or gains are excluded 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.
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SWIFT ENERGY COMPANY Reconciliation of GAAP (a) to non-GAAP Measures (Unaudited) (In Thousands) Below is a reconciliation of EBITDA to Net Income and Cash Flow Before Working Capital Changes to Net Cash Provided by Operating Activities. Three Months Ended Dec. 31, 2004 Dec. 31, 2003 ------------- ------------- NET INCOME TO EBITDA RECONCILIATIONS: Net Income $ 26,834 $ 9,502 182% Provision for Income taxes 15,046 2,787 Interest Expense, Net 6,282 7,161 Depreciation, Depletion & Amortization(b) 24,106 16,675 ---------- ---------- EBITDA $ 72,268 36,125 100% ========== ========== Year Ended Dec. 31, 2004 Dec. 31, 2003 ------------- ------------- Net Income $ 68,451 $ 29,894 129% Provision for Income taxes 32,989 16,469 Cumulative Effect of Accounting Change --- 4,377 Interest Expense, Net 27,643 27,269 Depreciation, Depletion & Amortization(b) 82,254 63,929 ---------- ---------- EBITDA $ 211,338 $ 141,937 49% ========== ========== Three Months Ended Dec. 31, 2004 Dec. 31, 2003 ------------- ------------- NET CASH FLOW RECONCILIATIONS: Net Cash Provided by Operating Activities $ 56,163 $26,805 110% Increases and Decreases In: Accounts Receivable 5,100 3,268 Accounts Payable and Accrued Liabilities 1,559 ( 2,018) Accrued Interest 1,844 1,329 ---------- ------------ Cash Flow Before Working Capital Changes $ 64,667 $ 29,383 120% ============ ============ Year Ended Dec. 31, 2004 Dec. 31, 2003 ------------- ------------- Net Cash Provided by Operating Activities $ 182,583 $ 110,827 65% Increases and Decreases In: Accounts Receivable 11,041 7,163 Accounts Payable and Accrued Liabilities (843) (2,432) Accrued Interest (460) (117) ---------- ------------ Cash Flow Before Working Capital Changes $ 192,320 $ 115,441 67% ========== ============ (a) GAAP--Generally Accepted Accounting Principles (b) Includes accretion of asset retirement obligation
Note: Items may not total due to rounding -more-
SWIFT ENERGY COMPANY SUMMARY BALANCE SHEET INFORMATION (Unaudited) (In Thousands) As of As of December 31, 2004 December 31, 2003 ----------------- ----------------- Assets: Current Assets: Cash and Cash Equivalents $ 4,920 $ 1,066 Other Current Assets 49,466 32,395 --------- --------- Total Current Assets 54,386 33,461 Oil and Gas Properties 1,559,803 1,372,669 Other Fixed Assets 12,821 10,603 Less-Accumulated DD&A (649,186) (567,464) --------- --------- 923,438 815,807 Other Assets 12,749 10,571 --------- --------- $ 990,573 $ 859,839 ========= ========= Liabilities: Current Liabilities $ 68,618 $ 69,353 Long-Term Debt 357,500 340,255 Deferred Income Taxes 73,107 43,499 Asset Retirement Obligation 17,176 9,340 Stockholders' Equity 474,172 397,391 ------- ------- $ 990,573 $ 859,839 ========= =========
Note: Items may not total due to rounding
SWIFT ENERGY COMPANY SUMMARY INCOME STATEMENT INFORMATION (Unaudited) (In Thousands Except Per Mcfe Amounts) Three Months Ended Year Ended December 31, 2004 Per Mcfe December 31, 2004 Per Mcfe --------------------- -------- ----------------- -------- Revenues: Oil & Gas Sales $ 98,854 $ 6.23 $ 311,285 $ 5.34 Other Revenue 81 0.01 (1,008) (0.02) ------- ---- -------- ------ Total Revenues 98,935 6.24 310,277 5.32 ------- ---- -------- ------ Costs and Expenses: General and Administrative, Net 5,191 0.33 17,787 0.31 Depreciation, Depletion & Amortization 23,931 1.51 81,581 1.40 Accretion of Asset Retirement Obligation 175 0.01 674 0.01 Oil & Gas Production Costs 11,304 0.71 41,214 0.71 Severance & Ad Valorem Taxes/Royalty 10,149 0.64 30,401 0.52 Interest Expense, Net 6,282 0.40 27,643 0.47 Debt Retirement Cost 23 0.00 9,536 0.16 ------- ---- ------- ---- Total Costs & Expenses 57,054 3.60 208,837 3.58 ------- ---- ------- ---- Income Before Income Taxes 41,880 2.64 101,440 1.74 Provision for Income Taxes 15,046 0.95 32,989 0.57 ------- ---- ------- ---- Net Income $ 26,834 $ 1.69 $ 68,451 $ 1.17 ======= ==== ======= ==== Additional Information: Capital Expenditures $ 65,198 $ 181,092 Capitalized Geological & Geophysical $ 2,850 $ 10,710 Capitalized Interest Expense $ 1,744 $ 6,490 Deferred Income Tax $ 14,979 $ 32,513
Note: Items may not total due to rounding -more-
SWIFT ENERGY COMPANY CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) (In Thousands) Years Ended, December 31, 2004 December 31, 2003 ----------------- ----------------- Cash Flows From Operating Activities: Net Income $ 68,451 $ 29,894 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities - Cumulative Effect of Changes in Accounting Principle --- 4,377 Depreciation, Depletion, and Amortization 81,581 63,072 Accretion of Asset Retirement Obligation (ARO) 674 857 Deferred Income Taxes 32,513 16,332 Debt Retirement Cost 9,536 --- Other (435) 909 Change in Assets and Liabilities - Increase in Accounts Receivable, (11,041) (7,163) Increase in Accounts Payable and Accrued Liabilities 843 2,432 Increase in Accrued Interest 461 117 -------------- --------------- Net Cash Provided by Operating Activities 182,583 110,827 -------------- --------------- Cash Flows From Investing Activities: Additions to Property and Equipment (171,095) (144,503) Proceeds from the Sale of Property and Equipment 5,058 10,187 Acquisition of Bay de Chene and Cote Blanche Island (27,196) --- Net Cash Received as Operator of Oil & Gas Properties 3,922 3,074 Net Cash Received as Operator of Partnerships and Joint Ventures 884 261 Other (659) (71) -------------- -------------- Net Cash Used in Investing Activities (189,086) (131,053) -------------- -------------- Cash Flows From Financing Activities: Proceeds from Long-Term Debt 150,000 --- Payment of Long-Term Debt (125,000) --- Net Proceeds from (payments of) Bank Borrowings (8,400) 15,900 Net Proceeds from Issuance of Common Stock 4,825 1,576 Payments of Debt retirement Cost (6,735) --- Payments of Debt issuance Cost (4,334) --- -------------- ------------- Net Cash Provided by Financing Activities 10,357 17,476 -------------- -------------- Net Increase (Decrease) in Cash and Cash Equivalents 3,854 (2,750) Cash and Cash Equivalents at the Beginning of the Period 1,066 3,816 ------------- -------------- Cash and Cash Equivalents at the End of the Period $ 4,920 $ 1,066 ============= =============
Note: Items may not total due to rounding -more-
SWIFT ENERGY COMPANY OPERATIONAL INFORMATION QUARTERLY COMPARISON -- SEQUENTIAL & YEAR-OVER-YEAR (Unaudited) Three Months Ended Three Months Ended ------------------ ------------------ Percent Percent Dec. 31, Sept. 30, Change Dec. 31, Change -------- --------- ------- -------- ------ 2004 2004 2003 Total Company Production: Oil & Natural Gas Equivalent (Bcfe) 15.86 13.92 14% 13.38 19% Natural Gas (Bcf) 6.12 5.96 3% 6.59 (7%) Crude Oil (MBbl) 1,380 1,076 28% 941 47% NGL (MBbl) 243 251 (3%) 191 27% Domestic Production: Oil & Natural Gas Equivalent (Bcfe) 11.26 10.17 11% 8.81 28% Natural Gas (Bcf) 3.02 3.21 (6%) 3.37 (10%) Crude Oil (MBbl) 1,223 1,008 21% 787 55% NGL (MBbl) 150 151 (1%) 121 24% New Zealand Production: Oil & Natural Gas Equivalent (Bcfe) 4.60 3.75 23% 4.57 1% Natural Gas (Bcf) 3.10 2.75 13% 3.22 (4%) Crude Oil (MBbl) 157 68 133% 154 2% NGL (MBbl) 93 100 (7%) 70 32% Total Company Average Prices: Combined Oil & Natural Gas ($/Mcfe) $ 6.23 $ 5.36 16% $ 3.97 57% Natural Gas ($/Mcf) $ 4.67 $ 3.97 18% $ 3.29 42% Crude Oil ($/Bbl) $ 46.33 $ 41.99 10% $ 30.10 54% NGL ($/Bbl) $ 26.01 $ 23.33 11% $ 16.71 56% Domestic Average Prices: Combined Oil & Natural Gas ($/Mcfe) $ 7.17 $ 6.25 15% $ 4.59 56% Natural Gas ($/Mcf) $ 6.53 $ 5.47 19% $ 4.37 49% Crude Oil ($/Bbl) $ 46.17 $ 41.60 11% $ 29.91 54% NGL ($/Bbl) $ 30.43 $ 26.44 15% $ 18.28 67% New Zealand Average Prices: Combined Oil & Natural Gas ($/Mcfe) $ 3.93 $ 2.97 32% $ 2.78 41% Natural Gas ($/Mcf) $ 2.86 $ 2.21 29% $ 2.15 33% Crude Oil ($/Bbl) $ 47.57 $ 47.75 --% $ 31.09 53% NGL ($/Bbl) $ 18.92 $ 18.63 2% $ 14.02 35%
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SWIFT ENERGY COMPANY FIRST QUARTER AND FULL YEAR 2005 GUIDANCE ESTIMATES Actual Guidance Guidance For Fourth For First For Full Quarter 2004 Quarter 2005 Year 2005 Production Volumes (Bcfe) 15.9 15.4 - 16.0 62.5 - 65.5 Domestic Volumes (Bcfe) 11.3 11.0 - 11.5 46.0 - 48.0 New Zealand Volumes (Bcfe) 4.6 4.0 - 4.5 16.5 - 17.5 Production Mix: Domestic Natural Gas (Bcf) 3.02 3.00 - 3.20 12.0 - 12.7 Crude Oil (MBbl) 1,223 1,200 - 1,245 5,150 - 5,355 Natural Gas Liquids (MBbl) 150 133 - 138 515 - 528 New Zealand Natural Gas (Bcf) 3.10 2.8 - 3.1 11.6 - 12.3 Crude Oil (MBbl) 157 140 - 165 566 - 600 Natural Gas Liquids (MBbl) 93 65 - 83 250 - 262 Product Pricing (Note 1): Domestic Pricing: Natural Gas (per Mcf) NYMEX differential (Note 2) ($0.55) ($0.70) - ($0.85) ($0.70) - ($0.90) Crude Oil (per Bbl) NYMEX differential (Note 3) ($2.07) ($2.00) - ($3.00) ($2.00) - ($3.00) NGL (per Bbl) Percent of NYMEX Crude 66% 45% - 55% 45% - 55% New Zealand Pricing: Natural Gas (per Mcf) (Note 4) $2.83 $2.60 -- $2.80 $2.60 -- $2.85 Crude Oil (per Bbl) NYMEX differential (Note 3 & 5) ($0.67) ($2.00) - ($3.50) ($2.00) - ($3.50) NGL (per Bbl) Contract Price (Note 6) $18.92 $16.00 - $18.00 $16.00 - $18.00 Oil & Gas Production Costs: Domestic Lease Operating Costs (per Mcfe) $0.71 $0.88 - $0.93 $0.82 - $0.87 Severance & Ad Valorem Taxes (as % of Revenue dollars) 11.0% 11.0% - 12.0% 11.0% - 12.0% New Zealand Lease Operating Costs (per Mcfe) $0.71 $0.68 - $0.72 $0.70 - $0.75 Government Royalty (as % of Revenue dollars) 6.8% 8.0% - 9.0% 8.0% - 9.0%
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SWIFT ENERGY COMPANY FIRST QUARTER AND FULL YEAR 2005 GUIDANCE ESTIMATES (In Thousands Except Per Production Unit Amounts) Actual Guidance Guidance For Fourth For First For Full Quarter 2004 Quarter 2005 Year 2005 Other Costs: G&A per Mcfe $0.33 $0.30 - $0.34 $0.30 - $0.34 Interest Expense per Mcfe $0.40 $0.39 - $0.44 $0.38 - $0.42 DD&A per Mcfe $1.51 $1.60 - $1.65 $1.59 - $1.64 Supplemental Information: Capital Expenditures Operations $38,001 $45,000 - $50,000 $182,200 - $209,100 Acquisition/Dispositions, net $23,550 ($0,000) - ($1,000) ($5,000) - ($15,000) Capitalized G&G (Note 7) $ 2,850 $ 4,000 - $ 4,500 $ 16,000 - $18,000 Capitalized Interest $ 1,744 $ 1,700 - $ 1,900 $ 6,800 - $ 7,900 Total Capital Expenditures $66,145 $ 50,700 - $54,400 $200,000 - $220,000 Basic Weighted Average Shares 28,046 28,000 - 28,500 28,400 - 29,200 Diluted Computation: Weighted Average Shares 28,723 28,900 - 29,400 29,000 - 30,000 Effective Tax Rate (Note 8) 35.9% 35.5% - 36.5% 35.5% - 36.5% Deferred Tax Percentage 99% 97% - 99% 97% - 99% 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: Does not include capitalized acquisition costs, incorporated in acquisitions when occurred. Note 8: Effective Tax rate guidance does not include any New Zealand currency exchange fluctuations.
This material 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 volatility in oil or gas prices, and availability of services and supplies. 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 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, engineering and geologic information and changes in market conditions. CONTACT: Swift Energy Company, Houston Scott A. Espenshade, 281-874-2700 or 800-777-2412 16825 Northchase Drive, Suite 400, Houston TX 77060 www.swiftenergy.com -----END PRIVACY-ENHANCED MESSAGE-----