SWIFT ENERGY REPORTS FIRST QUARTER 2004 RESULTS:
- -----------------------------------------------
RECORD REVENUES OF $65.4 MILLION;
--------------------------------
RECORD PRODUCTION OF 14.3 Bcfe; and
-----------------------------------
EARNINGS OF $0.52 PER SHARE
---------------------------
HOUSTON--(BUSINESS WIRE)--May 5, 2004 -- Swift Energy Company (NYSE: SFY)
announced today a 39% increase in net income for the first quarter of 2004 to
$14.6 million, or $0.52 per diluted share, compared to $10.5 million in net
income before accounting change, or $0.38 per diluted share earned in the first
quarter of 2003. Including the effect of the SFAS 143 accounting change
implemented in the first quarter of 2003, both net income and earnings per share
more than doubled from 2003 to 2004.
Production increased 11% for the first quarter of 2004 to 14.3 billion cubic
feet equivalent ("Bcfe") from the 12.9 Bcfe produced in the first quarter of
2003 and increased 7% sequentially from the 13.4 Bcfe produced in the fourth
quarter of 2003. The increases were primarily due to higher levels of domestic
production at Lake Washington resulting from Swift Energy's two rig drilling
program in 2003, along with expanded infrastructure in the field. First quarter
2004 production included 10.4 Bcfe of domestic production (a 35% increase) and
3.9 Bcfe produced in New Zealand, (a 25% decrease) in both cases when compared
to production in the same period in 2003.
Terry Swift, President and CEO, noted, "Swift Energy continues to successfully
implement its strategic plan. Domestic production increases, enhanced by the
current commodity environment, have delivered excellent quarterly results. In
the Lake Washington area, we will begin acquiring data from the 3-D seismic
shoot in the second quarter. This seismic data will lay the foundation for our
2005 drilling program in this area. This new information should add to Swift's
already substantial inventory of identified development projects in this area
and exciting list of exploration prospects in New Zealand, which will enable the
Company to continue to fortify its strong foundation and accelerate growth in
the coming years."
Revenues and Expenses
Total revenues for the first quarter of 2004 increased 22% to $65.4 million from
the $53.5 million of revenues in the first quarter of 2003. Swift Energy's
increased revenues for the quarter are attributable to both increased levels of
production and higher commodity prices.
-more-
Lease operating expenses, before severance and ad valorem taxes, were $0.67 per
thousand cubic feet equivalent ("Mcfe") in the first quarter of 2004, an
increase of 18% compared to $0.57 per Mcfe in the first quarter of 2003. The
increase was predominately due to the facility enhancement costs in Lake
Washington, along with higher currency exchange rates and plant maintenance in
New Zealand. General and administrative expenses were $0.28 per Mcfe during the
first quarter of both 2004 and 2003. Depreciation, depletion and amortization
expense was $1.28 per Mcfe in the first quarter of 2004 compared to $1.16 per
Mcfe in the first quarter of 2003, and interest expense was $0.48 per Mcfe
compared to $0.52 per Mcfe for the 2003 period. Also, severance and ad valorem
taxes were up appreciably in the 2004 period to $0.44 per Mcfe from $0.36 per
Mcfe a year earlier due to higher commodity prices and severance tax rates on
crude oil from our increased production in Louisiana.
Income tax expense in the first quarter of 2004 includes a reduction from the
U.S. statutory rate, almost entirely the result of the favorable currency
exchange rate effect applied to New Zealand deferred taxes.
Production & Pricing
Domestically, first quarter 2004 total production increased by 35% to 10.4 Bcfe
compared with 7.7 Bcfe produced in the first quarter of 2003 and increased 18%
sequentially compared to the 2003 fourth quarter production of 8.8 Bcfe. This is
a result of the Company's successful drilling efforts and targeted capital
expenditure program in the Lake Washington area.
New Zealand accounted for 27% of total production with 3.9 Bcfe produced in the
first quarter of 2004. This 25% decrease from the 5.2 Bcfe produced in the first
quarter of 2003 and 16% decrease from fourth quarter 2003 production levels was
in line with the Company's guidance. Production in New Zealand was expected to
be lower as increased use of hydroelectricity in New Zealand has contributed to
a short-term reduction in market demand, which is expected to continue at least
through the second quarter of this year.
In the first quarter of 2004, Swift Energy realized an aggregate global average
price of $4.62 per Mcfe, an increase of 8% from first quarter 2003 price levels,
when the price averaged $4.26 per Mcfe. Domestically, the Company realized an
aggregate average price of $5.24 per Mcfe, a decrease of 8% over the $5.68
received in the first quarter of 2003. In New Zealand, the Company received an
aggregate average price of $2.93 per Mcfe for the first quarter in 2004, an
increase of 36% over the $2.15 per Mcfe realized in the same period of 2003.
Swift Energy realized average domestic natural gas prices of $4.90 per thousand
cubic feet ("Mcf") in the first quarter of 2004, a decrease of 19% from the
$6.03 per Mcf for the same period in 2003. Meanwhile, first quarter 2004 average
domestic crude oil prices increased 4% to $33.95 per barrel from $32.80 per
barrel realized in the same period of 2003. Prices for NGLs domestically
averaged $24.31 per barrel in the first quarter, a 15% decrease over first
quarter 2003 NGL prices of $28.47.
In New Zealand, Swift Energy received an average natural gas price of $2.27 per
Mcf for the first quarter of 2004 under its long-term contracts, a 40% increase
over the $1.62 per Mcf received in the first quarter of 2003. Also in New
Zealand, the sales price of the Company's McKee blend crude oil averaged $36.03
per barrel, an 11% increase over prices for the same period in 2003, and the
Company's NGL contracts yielded an average price of $16.00 per barrel for the
first quarter of 2004. New Zealand natural gas and NGL price contracts are
denominated in New Zealand dollars, which has continued to strengthen during the
first quarter 2004 against the U.S. dollar compared to the same period in 2003.
-more-
Domestic Operations
As previously reported, Swift Energy completed 12 of 14 wells domestically in
the first quarter of 2004. Of these 14 wells, 12 were development wells and two
were exploration wells. In Lake Washington, the Company completed six of seven
development wells, but was unsuccessful with an exploration well. In other
operated areas, Swift Energy completed a development well in the Austin Chalk in
the Masters Creek area, which has just been put on production and completed four
wells in the AWP Olmos area. Swift also completed an exploration well in its
South Texas drilling program, in the Guadalupe Pasture area in Willacy County.
Swift Energy has three drilling rigs operating domestically, one drilling for
oil in the Lake Washington area and two drilling for natural gas in Texas,
including one non-operated rig.
New Zealand Operations
Swift Energy completed the Kauri-E3 and the Kauri-E4 wells in New Zealand during
the first quarter 2004. The recently drilled Kauri-E4 well encountered both the
Kauri and Tariki sands and was perforated in a 15-foot section of the Tariki
sandstone, at approximately 9,900 feet true vertical depth. The Tariki Sand in
this well is approximately 1,800 feet up-dip and over 3.5 miles from the initial
Tariki sand discovery in the Rimu-A1 well. The Kauri-E4 well was tested over two
days at various rates, with the most recent rate of approximately 4.0 million
cubic feet per day and 400 barrels per day of crude oil/condensate. The Kauri-E4
well is currently shut-in gathering pressure data and is expected to begin
sustained production testing in the next few weeks. The Kauri-E3 well was
completed in the Kauri Sand and plans to fracture stimulate the well are pending
while monitoring of the results of the Kauri-E4 production testing takes place.
The first well in the 2004 Manutahi Sand drilling program, which is targeting
this shallow oil-bearing sand, will begin drilling later in May.
Borrowing Base
After a regular semi-annual review by its bank group, Swift Energy's borrowing
base was recently reaffirmed at $250 million effective May 1, 2004. The Company,
however, has continued to maintain the commitment amount at $150 million. Under
the terms of its credit facility, the Company can increase the commitment amount
up to the total amount of the borrowing base at its discretion. Price Risk
Management
Swift Energy also announced that since its last update on April 19, it has
continued to enter into price risk management transactions. For June 2004, the
Company executed a fixed price physical sale for crude oil of 1,500 barrels per
day at an average NYMEX strike price of $37.55 per barrel. This NYMEX crude oil
strike price does not take into account transportation charges or crude oil
quality differentials that could result in deductions ranging from $2.00 to
$3.00 per barrel. Also, the Company recently purchased additional natural gas
floors that cover 285,000 million British thermal units ("MMBtu") per month for
the third quarter of 2004, all at a strike price of $5.50 per MMBtu. Details of
all of Swift Energy's price risk management activities can be found on the
Company's website.
-more-
Earnings Release
Swift Energy will report first quarter 2004 financial results today, Wednesday
May 5, and conduct a conference call, with live webcast, at 9:00 a.m. CDT. 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 May 5 until May 12, by dialing 973-341-3080 and using pin #4682645.
Additionally, the conference call will be available over the Internet by
accessing the Company's website at www.swiftenergy.com and clicking on the event
hyperlink. This webcast will be available online and archived at the Company's
website.
Celebrating its 25th Anniversary this year, Swift Energy Company was founded in
1979 with its headquarters in Houston, Texas. 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 Texas and
Louisiana 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 lately 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.
-more-
SWIFT ENERGY COMPANY
SUMMARY FINANCIAL INFORMATION
(UNAUDITED)
In Thousands Except Per Share and Price Amounts
Three Months Ended
March 31,
2004 2003 Percent Change
---- ---- --------------
Revenues
Oil & Gas Sales $ 65,954 $ 54,850 20%
Other (598) (1,350) 56%
------- ----------
Total Revenue $ 65,356 $ 53,500 22%
Net Income Before Accounting Change(1) $ 14,588 $ 10,485 39%
Basic EPS, Before Accounting Change $ 0.53 $ 0.38 38%
Diluted EPS, Before Accounting Change $ 0.52 $ 0.38 35%
SFAS 143 Accounting Change --- $ (4,377) ---
Per Share --- $ ( 0.16) ---
Net Income $ 14,588 $ 6,108 139%
Basic EPS $ 0.53 $ 0.22 136%
Diluted EPS $ 0.52 $ 0.22 132%
Net Cash Provided By
Operating Activities $ 39,596 $ 26,799 48%
Net Cash Provided By
Operating Activities, Per Diluted Share $ 1.41 $ 0.98 44%
Cash Flow Before Working Capital
Changes(2) (non-GAAP measure) $ 38,762 $ 31,643 23%
Cash Flow Before Working
Capital Changes, Per Diluted Share $ 1.38 $ 1.16 19%
Weighted Average
Shares Outstanding (WASO) 27,553 27,243 1%
EBITDA(2) (non-GAAP measure) $ 45,454 $ 38,036 20%
Production (Bcfe): 14.3 12.9 11%
Domestic 10.4 7.7 35%
New Zealand 3.9 5.2 (25%)
Realized Price ($/Mcfe): $4.62 $4.26 8%
Domestic $5.24 $5.68 (8%)
New Zealand $2.93 $2.15 36%
<FN>
(1) SFAS 143 - Statement of Financial Accounting Standards No. 143 (SFAS No.
143), "Accounting for Asset Retirement Obligations," which requires
companies to record the present value of estimated future abandonment
obligations as a liability, with a corresponding entry to oil and gas
assets.
(2) See reconciliation on page 9. 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. EBITDA and cash flow before
working capital changes are widely accepted as financial indicators of an
oil and gas company's ability to generate cash which is used to internally
fund exploration and development activities and to service debt. EBITDA and
cash flow before working capital changes are not measures of financial
performance under GAAP and should not be considered as an alternative to
cash flows from operating, investing, or financing activities, as an
indicator of cash flows, or as a measure of liquidity.
</FN>
-more-
SWIFT ENERGY COMPANY
SUMMARY BALANCE SHEET INFORMATION
In Thousands
As of As of
March 31, 2004 December 31, 2003
---------------- -----------------
(Unaudited)
Assets:
Current Assets:
Cash and Cash Equivalents $ 4,399 $ 1,066
Other Current Assets 36,103 32,391
--------- ---------
Total Current Assets 40,502 33,457
Oil and Gas Properties 1,409,359 1,373,321
Other Fixed Assets 10,937 10,602
Less-Accumulated DD&A (585,839) (567,464)
--------- ---------
834,456 816,460
Other Assets 11,411 9,921
--------- ---------
$ 886,369 $ 859,839
========= =========
Liabilities:
Current Liabilities $ 55,872 $ 68,556
Long-Term Debt 356,877 340,255
Deferred Income Taxes 49,425 43,499
Asset Retirement Obligation 10,368 10,137
Stockholders' Equity 413,827 397,391
------- -------
$ 886,369 $ 859,839
========= =========
Note: Items may not total due to rounding
-more-
SWIFT ENERGY COMPANY
SUMMARY INCOME STATEMENT INFORMATION
(UNAUDITED)
In Thousands Except Per Mcfe Amounts
Three Months Ended Three Months Ended
Mar. 31, 2004 Per Mcfe Mar. 31, 2003 Per Mcfe
------------------- ---------- --------------- --------
Revenues:
Oil & Gas Sales $ 65,954 $ 4.62 $ 54,850 $ 4.26
Other Revenue (598) (0.04) (1,350) (0.10)
----- ------ ------- ------
65,356 4.57 53,500 4.16
------ ---- ------ ----
Costs and Expenses:
General and administrative, net 4,030 0.28 3,557 0.28
Depreciation, Depletion & Amortization 18,296 1.28 14,912 1.16
Accretion of asset retirement obligation
(ARO) 170 0.01 215 0.02
Lease Operating Costs 9,626 0.67 7,313 0.57
Severance & Other Taxes 6,247 0.44 4,595 0.36
Interest Expense, Net 6,901 0.48 6,685 0.52
------ ---- ------ ----
Total Costs & Expenses 45,270 3.17 37,276 2.90
------ ---- ------ ----
Income before Income Taxes & Change in
Accounting Principle 20,086 1.41 16,224 1.26
Provision for Income Taxes 5,498 0.38 5,739 0.45
----- ---- ----- ----
Income Before Changes in
Accounting Principle $ 14,588 $ 1.02 $ 10,485 $ 0.82
Cumulative Effect of Change in
Accounting Principle (SFAS 143) --- --- 4,377 0.34
--- --- ----- ----
Net Income $ 14,588 $ 1.02 $ 6,108 $ 0.47
====== ==== ===== ====
Additional Information:
Capital Expenditures $ 45,150 $ 26,335
Capitalized Geological & Geophysical $ 2,506 $ 2,546
Capitalized Interest Expense $ 1,609 $ 1,747
Deferred Income Tax $ 5,434 $ 5,739
Note: Items may not total due to rounding
-more-
Swift Energy Company
CONSOLIDATED STATEMENTS OF CASH FLOW
(UNAUDITED)
In Thousands
Three Months Ended
March 31, 2004 March 31, 2003
-------------- --------------
Cash Flows From Operating Activities:
Net Income $ 14,588 $ 6,108
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 18,296 14,912
Accretion of asset retirement obligation (ARO) 170 215
Deferred income taxes 5,434 5,739
Other 274 292
Change in assets and liabilities -
Increase in accounts receivable, (2,022) (7,077)
Increase in accounts payable and accrued 1,532 747
liabilities
Increase in accrued interest 1,324 1,486
------------ --------------
Net Cash Provided by Operating Activities 39,596 26,799
------------ --------------
Cash Flows From Investing Activities:
Additions to property and equipment (45,150) (26,335)
Proceeds from the sale of property and equipment 23 551
Net cash distributed as operator of oil & gas properties (8,708) (5,890)
Net cash received (distributed) as operator of partnerships and joint 106 (287)
ventures
Other (1) (36)
----------------- ---------------
Net Cash Used in Investing Activities (53,730) (31,997)
----------------- ---------------
Cash Flows From Financing Activities:
Net proceeds from bank borrowings 16,600 5,700
Net proceeds from issuance of common stock 866 ---
----------------- ---------------
Net Cash Provided by Financing Activities 17,466 5,700
----------------- ---------------
Net Increase in Cash and Cash Equivalents 3,332 502
Cash and Cash Equivalents at the Beginning of the Period 1,066 3,816
----------------- ---------------
Cash and Cash Equivalents at the End of the Period $ 4,399 $ 4,318
================= ===============
Note: Items may not total due to rounding
-more-
SWIFT ENERGY COMPANY
Reconciliation of GAAP to non-GAAP Measures (a)
(UNAUDITED)
In Thousands
Below is a reconciliation of (1) EBITDA to Net Income and (2) Cash Flow Before
Working Capital Changes to Net Cash Provided by Operating Activities.
Three Months Ended,
------------------- Percent
Mar. 31, 2004 Mar. 31, 2003 Change
------------- ------------ -------
NET INCOME TO EBITDA RECONCILIATIONS:
Net Income $ 14,588 $ 6,108 139%
Provision for Income taxes 5,498 5,739
Cumulative Effect of SFAS 143 Accounting Change --- 4,377
Interest Expense, Net 6,901 6,685
Depreciation, Depletion & Amortization & ARO 18,466 15,127
------ ------
EBITDA $ 45,454 $ 38,036 20%
========= =========
Three Months Ended,
------------------- Percent
Mar. 31, 2004 Mar. 31, 2003 Change
------------- ------------- -------
NET CASH FLOW RECONCILIATIONS:
Net Cash Provided by Operating Activities $ 39,596 $ 26,799 48%
Increases and Decreases In:
Accounts Receivable 2,022 7,077
Accounts Payable and Accrued Liabilities (1,532) (747)
Accrued Interest (1,324) (1,486)
------------- -------------
Cash Flow Before Working Capital Changes $ 38,763 $ 31,643 23%
============= =============
(a) GAAP--Generally Accepted Accounting Principles
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
Mar. 31, Dec. 31, Change Mar. 31, Change
------- -------- ------- -------- -------
2004 2003 2003
------- -------- ------- -------- -------
Total Company Production:
Oil & Natural Gas Equivalent (Bcfe) 14.29 13.38 7% 12.86 11%
Natural Gas (Bcf) 5.87 6.59 (11%) 7.68 (24%)
Crude Oil (MBbl) 1,124 941 19% 690 63%
NGLs (MBbl) 278 191 46% 173 61%
Domestic Production:
Oil & Natural Gas Equivalent (Bcfe) 10.43 8.81 18% 7.71 35%
Natural Gas (Bcf) 3.06 3.37 (9%) 3.64 (16%)
Crude Oil (MBbl) 1,018 787 29% 578 76%
NGLs (MBbl) 211 121 74% 100 111%
New Zealand Production:
Oil & Natural Gas Equivalent (Bcfe) 3.85 4.57 (16%) 5.16 (25%)
Natural Gas (Bcf) 2.81 3.22 (13%) 4.04 (30%)
Crude Oil (MBbl) 106 154 (31%) 112 (5%)
NGLs (MBbl) 67 70 (4%) 73 (8%)
Total Company Average Prices:
Combined Oil & Natural Gas ($/Mcfe) $ 4.62 $ 3.97 16% $ 4.26 8%
Natural Gas ($/Mcf) $ 3.64 $ 3.29 11% $ 3.71 (2%)
Crude Oil ($/Bbl) $ 34.14 $30.10 13% $ 32.73 4%
NGLs ($/Bbl) $ 22.30 $16.71 33% $ 21.90 2%
Domestic Average Prices:
Combined Oil & Natural Gas ($/Mcfe) $ 5.24 $ 4.59 14% $ 5.68 (8%)
Natural Gas ($/Mcf) $ 4.90 $ 4.37 12% $ 6.03 (19%)
Crude Oil ($/Bbl) $ 33.95 $29.91 14% $ 32.80 4%
NGLs ($/Bbl) $ 24.31 $18.28 33% $ 28.47 (15%)
New Zealand Average Prices:
Combined Oil & Natural Gas ($/Mcfe) $ 2.93 $ 2.78 5% $ 2.15 36%
Natural Gas ($/Mcf) $ 2.27 $ 2.15 6% $ 1.62 40%
Crude Oil ($/Bbl) $ 36.03 $31.09 16% $ 32.36 11%
NGLs ($/Bbl) $ 16.00 $14.02 14% $ 12.89 24%
-more-
SWIFT ENERGY COMPANY
SECOND QUARTER AND FULL YEAR 2004
GUIDANCE ESTIMATES
Actual Guidance Guidance
For First For Second For Full
Description Quarter 2004 Quarter 2004 Year 2004
Production Volumes (Bcfe) 14.3 13.75 - 14.75 59.0 - 62.0
Domestic Volumes (Bcfe) 10.4 10.0 - 10.5 40.0 - 44.0
New Zealand Volumes (Bcfe) 3.9 3.75 - 4.25 16.5 - 20.0
Production Mix:
Domestic
Natural Gas (Bcf) 3.06 2.80 - 3.20 12.0 - 13.0
Crude Oil (MBbl) 1,018 1,060 - 1,125 4,250 - 4,740
Natural Gas Liquids (MBbl) 211 140 - 175 550 - 700
New Zealand
Natural Gas (Bcf) 2.81 2.8 - 3.2 12.5 - 15.0
Crude Oil (MBbl) 106 115 - 155 550 - 610
Natural Gas Liquids (MBbl) 67 40 - 70 200 - 225
Product Pricing (Note 1):
Domestic Pricing:
Natural Gas (per Mcf)
NYMEX differential (Note 2) ($0.79) ($0.25) to ($0.35) ($0.25) to ($0.35)
Crude Oil (per Bbl)
NYMEX differential (Note 3) ($1.26) ($1.00) to ($2.00) ($1.00) to ($2.00)
NGLs (per Bbl)
Percent of NYMEX Crude 69% 45% - 55% 45% - 55%
New Zealand Pricing:
Natural Gas (per Mcf) (Note 4) $2.27 $2.20 to $2.35 $2.20 to $2.40
Crude Oil (per Bbl)
NYMEX differential (Note 3 & 5) $0.82 ($1.50) to ($3.00) ($1.50) to ($3.00)
NGLs (per Bbl)
Contract Price (Note 6) $16.00 $13.00 to $15.00 $13.00 to $16.00
Oil & Gas Production Costs:
Domestic
Lease Operating Costs (per Mcfe) $0.66 $0.68 - $0.73 $0.63 - $0.73
Severance & Ad Valorem Taxes
(as % of Revenue dollars) 9.9% 10.0% - 11.0% 10.0% - 11.0%
New Zealand
Lease Operating Costs (per Mcfe) $0.70 $0.68 - $0.72 $0.64 - $0.70
Government Royalty
(as % of Revenue dollars) 7.3% 8.5% - 9.5% 8.5% - 9.5%
-more-
SWIFT ENERGY COMPANY
SECOND QUARTER AND FULL YEAR 2004
GUIDANCE ESTIMATES
(In Thousands Except Per Production Unit Amounts)
Actual Guidance Guidance
For First For Second For Full
Description Quarter 2004 Quarter 2004 Year 2004
- -----------
Other Costs:
G&A per Mcfe $0.28 $0.25 - $0.29 $0.24 - $0.28
Interest Expense per Mcfe $0.48 $0.48 - $0.52 $0.47 - $0.52
DD&A per Mcfe $1.28 $1.26 - $1.31 $1.27 - $1.32
Supplemental Information:
Capital Expenditures
Operations $41,035 $43,000 - $50,000 $117,400 - $144,600
Acquisition/Dispositions, net --- ($1,000) - ($6,000) ($3,000) - ($13,000)
Capitalized G&G (Note 7) $ 2,506 $ 2,400 - $ 2,700 $ 9,500 - $ 11,500
Capitalized Interest $ 1,609 $ 1,600 - $ 1,800 $ 6,400 - $ 7,200
Total Capital Expenditures $45,150 $46,000 - $ 48,500 $130,000 - $150,000
Basic Weighted Average Shares 27,553 27,600 - 27,900 27,600 - 28,400
Diluted Computation:
Weighted Average Shares 28,099 28,100 - 28,700 28,100 - 29,000
Effective Tax Rate (Note 8) 27% 34.5% - 36.5% 35.5% - 36.5%
Deferred Tax Percentage 96% 96% - 99% 97% - 99%
<FN>
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.
</FN>
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