Exhibit 99
SWIFT ENERGY ANNOUNCES RECORD QUARTER:
SECOND QUARTER EARNINGS INCREASE 116% TO $27.9 MILLION,
EARNINGS PER SHARE OF $0.96 PER DILUTED SHARE, AND
CASH FLOW* OF $69.5 MILLION OR $2.39 PER DILUTED SHARE
HOUSTON, August 3, 2005 - Swift Energy Company (NYSE: SFY) announced today
record net income of $27.9 million for the second quarter of 2005, or $0.96 per
diluted share, a 116% increase compared to $12.9 million in net income, or $0.46
per diluted share, earned in the same quarter of 2004. Cash flow before working
capital changes (*non-GAAP measure - see page 7 for reconciliation to net cash
provided by operating activities of $64.6 million) increased 65% to $69.5
million, or $2.39 per diluted share, compared to $42.1 million, or $1.49 per
diluted share, for the second quarter of 2004.
Production increased 12% for the second quarter of 2005 to a record 15.9 billion
cubic feet equivalent ("Bcfe") from the 14.3 Bcfe produced in the second quarter
of 2004 and increased 2% sequentially from the 15.5 Bcfe produced in the first
quarter of 2005. Second quarter 2005 production included 12.0 Bcfe of domestic
production, a 17% increase, and 4.0 Bcfe produced in New Zealand, a 2% decrease,
in both cases when compared to production in the same period in 2004. The
domestic increases were primarily due to higher levels of crude oil production
at Lake Washington. The New Zealand production decline was the result of
scheduled maintenance work at the Rimu Production Station, a delayed crude oil
lifting now scheduled in the third quarter, as well as inherent production
decline.
Terry Swift, CEO of Swift Energy, commented, "Swift Energy has just completed
its best first-half, both operationally and financially, in the history of the
Company. We have had some very promising results with our first 3-D generated
exploration prospect in the Lake Washington area and are encouraged with the
early results of our exploration program in New Zealand. Our current drilling
program is presenting the best opportunity set in our history, which we believe
will be able to deliver meaningful reserves and production growth as we move
forward with our strategic plan. Production for the first half of 2005 was up
10% over production in the first half of 2004 and the facility expansion in Lake
--more--
Washington is on-track to be completed by the end of the third quarter of 2005.
Due to this progress, Swift Energy is increasing its 2005 production guidance to
10% to 14% over 2004 production levels, or approximately 64.0 Bcfe to 66.5 Bcfe.
As Swift continues to execute its strategic plan, bolstered by this strong
commodity pricing environment, we believe this will again be a record year of
value creation for Swift Energy and our stakeholders."
Six-Month Results for 2005
Through the first six months of 2005, Swift Energy had record production
totaling 31.4 Bcfe, an increase of 10% from 28.5 Bcfe produced last year for the
same period. Total revenues for the first six months of 2005 were $199.9
million, up 47% from $136.4 million during the same period last year. During the
first half of 2005, net income increased 95% to $53.6 million ($1.86 per diluted
share) from $27.5 million ($0.98 per diluted share) in the first half of 2004.
Cash flow before changes in working capital (a non-GAAP measure, see
reconciliation on page 7) increased 66% in the first half of 2005 to $134.6
million ($4.67 per diluted share) from $80.9 million ($2.85 per diluted share)
in the same period in 2004. Net cash provided by operating activities for the
first half of 2005 increased 68% to $129.3 million ($4.48 per diluted share)
from $77.1 million ($2.72 per diluted share) in the 2004 period. Increased
revenues, net income and cash flow in 2005 are primarily the result of higher
commodity prices and our overall increased levels of production.
Revenues and Expenses for the Second Quarter
Total revenues for the second quarter of 2005 increased 47% to a record $104.3
million from the $71.0 million of revenues generated in the second quarter of
2004. This increase was attributable to higher commodity prices and overall
increased levels of production. Production for 2005 is expected to increase 10%
to 14%. Swift Energy's previous guidance for reserves and production growth in
2005 was 7% to 12%. Swift Energy's 2005 plan for reserves growth is primarily
oriented towards exploration and exploitation activity in Lake Washington, Bay
de Chene, Cote Blanche Island, South Texas and New Zealand, all of which is
planned for the second half of the year. Based upon this planned activity, the
Company estimates that 2005 reserves will increase 5% to 10%.
Lease operating expenses ("LOE"), before severance and ad valorem taxes, were
$0.73 per thousand cubic feet equivalent ("Mcfe") in the second quarter of 2005,
which was the same level for these expenses as in the second quarter of 2004. As
was the case in the first quarter of 2005, this level of LOE expense was less
than originally anticipated due to lower than expected chemical, repair and
maintenance costs, as well as no significant domestic workover activity taking
place during the quarter. Significant workover activity is expected to take
place in the second half of 2005, however, particularly in the Bay de Chene and
Cote Blanche Island fields where recompletion efforts will be underway in
several existing wells.
Depreciation, depletion and amortization expense increased to $1.81 per Mcfe in
the second quarter of 2005 from $1.37 per Mcfe in the comparable period in 2004,
primarily as a result of increased estimates for future development costs and
additional capital expenditures during the year. General and administrative
expenses increased to $0.31 per Mcfe during the second quarter 2005 from $0.29
per Mcfe in the same period in 2004. This increase was primarily attributable to
increases in Swift Energy's workforce, to accommodate the increased activity
level. Interest expense per unit decreased 21% to $0.40 per Mcfe in the second
quarter 2005 compared to $0.50 per Mcfe for the same period in 2004. Also,
severance and ad valorem taxes were up appreciably to $0.67 per Mcfe from $0.49
per Mcfe in the comparable periods due to higher commodity prices and the higher
severance tax rates on crude oil from our increased crude oil production in
Louisiana.
--more--
Production & Pricing
Domestically, second quarter 2005 total production increased by 17% to 12.0 Bcfe
compared with 10.2 Bcfe produced in the same 2004 period and increased 9%
sequentially compared to the 2005 first quarter production of 11.0 Bcfe. This
year-to-year production growth is primarily a result of the Company's drilling
efforts in the Lake Washington area.
New Zealand accounted for 25% of total production with 4.0 Bcfe produced in the
second quarter of 2005. This 2% decrease from the 4.1 Bcfe produced in the
second quarter of 2004 and 13% decline from first quarter 2005 production levels
was in line with the Company's guidance. Lower production in New Zealand was the
result of annual maintenance work at the Rimu Production Station, only two of
three scheduled crude oil tanker liftings in the second quarter taking place and
inherent production decline.
In the second quarter of 2005, Swift Energy realized an aggregate global average
price of $6.60 per Mcfe, an increase of 31% from second quarter 2004 price
levels when this price averaged $5.04 per Mcfe. Domestically, the Company
realized an aggregate average price of $7.53 per Mcfe, an increase of 28% over
the $5.86 received in the second quarter of 2004. In New Zealand, the Company
received an aggregate average price of $3.79 per Mcfe for the second quarter in
2005, an increase of 27% over the $2.98 per Mcfe realized in the same period of
2004.
Swift Energy's average domestic crude oil prices increased 35% to $50.21 per
barrel from $37.22 per barrel realized in the same period of 2004. Meanwhile,
second quarter 2005 average domestic natural gas prices of $6.13 per thousand
cubic feet ("Mcf") in the second quarter of 2005 increased 1% from the $6.09 per
Mcf received during the same period in 2004. Prices for natural gas liquids
("NGLs") domestically averaged $25.74 per barrel in the second quarter of 2005,
a 33% increase over second quarter 2004 NGL prices of $19.42.
In New Zealand, the sales price of Swift Energy's crude oil averaged $50.82 per
barrel in the second quarter of 2005, a 36% increase over prices for the same
period in 2004. Also in New Zealand, the Company received an average natural gas
price of $3.05 per Mcf for the second quarter of 2005 under its long-term
contracts, a 43% increase over the $2.13 per Mcf received in the same 2004
period. The Company's NGL contracts yielded an average price of $19.30 per
barrel for the second quarter of 2005. New Zealand natural gas and NGL price
contracts are remitted in New Zealand dollars, which has remained strong during
the second quarter 2005 against the U.S. dollar compared to the same period in
2004, but weakened when compared to first quarter 2005 levels.
Operations Update
Swift Energy successfully completed 13 of 17 wells in the second quarter of
2005. Domestically, the Company completed 12 of 15 development wells for a
success rate of 80% for the quarter and was 1 for 1 with an exploration success
in Lake Washington. The Company successfully completed 5 of 8 development wells
in the Lake Washington area in Plaquemines Parish, Louisiana and successfully
completed 6 development wells in the AWP Olmos area in McMullen County, Texas.
Swift Energy also participated in a successful non-operated development well in
the Brookeland field in Newton County, Texas. In New Zealand, the Company was
unsuccessful on the Kauri-E10 development well.
Swift Energy has three wells waiting to be completed in the Lake Washington
area. The Company currently has two drilling rigs operating in Lake Washington
and has recently contracted for a third barge rig that will operate in the Lake
--more--
Washington, Bay de Chene and Cote Blanche Island areas through the rest of 2005.
The Company has also contracted for a fourth barge rig to work in these areas
that will be available for approximately two to three months during the second
half of 2005. An additional workover rig is also scheduled to begin working in
Bay de Chene and Cote Blanche Island in the second half of 2005. Additionally,
the Company has plans to move a rig to the Garcia Ranch area in South Texas
later in the third quarter 2005. The Newport prospect, Swift Energy's first
exploration well resulting from its recent 3-D generated prospects at Lake
Washington, was drilled in the second quarter of 2005 and encountered 44 feet of
net pay. The well tested at average rates of approximately 1,100 barrels of oil
per day and 545 Mcf per day of natural gas on a 16/64th inch choke with flowing
tubing pressure of 1940 psi. A flow line will be laid to this well, with
production expected to commence later in the third quarter 2005. Offset
locations have already been identified and are planned for drilling later in the
year to further delineate this new discovery.
Production facility upgrades in Lake Washington were delayed somewhat due to
Tropical Storm Cindy and Hurricane Dennis, but they are still expected to be
completed later in the third quarter 2005, as planned. As previously announced,
Swift Energy had shut-in production for a few days at Bay de Chene and Lake
Washington based on threats posed from both these storms. Operations were
resumed as soon as the storms had passed. No damages were incurred during either
event. The result of these two shut-in periods deferred production of
approximately 0.3 to 0.4 Bcfe, and is reflected in the Company's new production
guidance for the third quarter and the full year 2005.
In New Zealand, Swift Energy successfully drilled the Piakau North A-1 well
(100% working interest) in the TAWN area to a total vertical depth of 9,623 feet
in this third quarter of 2005 and preliminary analysis indicates that 76 feet of
net pay was encountered in an Eocene aged sand. The well is being completed and
will be connected to nearby facilities for testing and production. The Piakau
well is an additional 2005 exploration well, which was moved forward into the
2005 drilling schedule due to increased capital availability in the Swift Energy
New Zealand budget. The Company is also currently drilling the first well in the
Tarata Thrust joint venture, the Tawa-B1 well, to an expected total depth of
approximately 18,000 feet. The Company expects to begin drilling the Goss
Prospect exploration well with this same rig later in the third quarter, which
should be followed by the Trapper Prospect. These two wells are also part of the
2005 Tarata Thrust exploration program with Mighty River Power. Also late in the
second quarter of 2005, Swift Energy conducted a successful fracture stimulation
program on four Kauri sand wells. The Rimu Production Station underwent routine
maintenance in the second quarter of 2005, and as a result, Swift Energy had
reduced production levels for five days in May.
Price Risk Management
Swift Energy also announced that since its last price risk management update on
May 8, 2005, it has continued to enter into price risk management transactions
and reports the following current positions. The Company now has approximately
8% to 12% of its estimated third quarter domestic crude oil production sold at
an average NYMEX strike price of $56.55 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.
Swift Energy has purchased floors covering 45% to 50% of estimated third quarter
2005 domestic natural gas production at an average NYMEX strike price of $5.60
per Mcf. For the fourth quarter 2005, Swift has 15% to 20% of its estimated
domestic natural gas production covered by floors at an average NYMEX strike
price of $5.91 per Mcf. Details of Swift Energy's complete price risk management
activities can be found on the Company's website (www.swiftenergy.com).
--more--
Earnings Conference Call
Swift Energy will conduct a live conference call today, August 3, at 9:00 a.m.
CDT to discuss second quarter 2005 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 until August 10, by dialing 973-341-3080 and using pin #6156356. 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.
Swift Energy Company, founded in 1979 and headquartered in Houston, 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 oil and natural gas reserves in New Zealand. Over the Company's
25-year history, Swift Energy 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 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, availability of
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 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 Six Months Ended
June 30, June 30,
2005 2004 Percent 2005 2004 Percent
Change Change
---- ---- ------ ---- ---- -------
Revenues:
Oil & Gas Sales $ 104,922 $ 71,825 46% $ 200,444 $ 137,779 45%
Other (622) (781) 20% (523) (1,379) 62%
-------- ---------
Total Revenue $ 104,300 $ 71,044 47% $ 199,921 $ 136,399 47%
Net Income $ 27,882 $ 12,898 116% $ 53,571 $ 27,486 95%
Basic EPS $ 0.98 $ 0.46 111% $ 1.90 $ 0.99 91%
Diluted EPS $ 0.96 $ 0.46 111% $ 1.86 $ 0.98 90%
Net Cash Provided By
Operating Activities $ 64,632 $ 37,493 72% $ 129,283 $ 77,089 68%
Net Cash Provided By
Operating Activities, Per Diluted Share $ 2.32 $ 1.32 68% $ 4.48 $ 2.72 65%
Cash Flow Before Working Capital
Changes(1) (non-GAAP measure) $ 69,476 $ 42,110 66% $ 134,612 $ 80,872 67%
Cash Flow Before Working
Capital Changes, Per Diluted Share $ 2.39 $ 1.49 61% $ 4.67 $ 2.85 64%
Weighted Average
Shares Outstanding 28,377 27,7 42 2% 28,269 27,648 2%
EBITDA(1) (non-GAAP measure) $ 77,030 $ 46,814 65% $ 147,525 $ 92,267 60%
Production (Bcfe): 15.9 14.3 12% 31.4 28.5 10%
Domestic 12.0 10.2 17% 22.9 20.6 11%
New Zealand 4.0 4.1 (2%) 8.5 7.9 7%
Realized Price ($/Mcfe): $6.60 $5.04 31% $6.38 $4.83 32%
Domestic $7.53 $5.86 28% $7.27 $5.55 58%
New Zealand $3.79 $2.98 27% $3.97 $2.95 21%
(1) See reconciliation on page 7. 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.
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, 2005 June 30, 2004
------------- -------------
NET INCOME TO EBITDA RECONCILIATIONS:
Net Income $ 27,882 $ 12,898 116%
Provision for Income taxes 13,896 7,103
Interest Expense, Net 6,287 7,143
Depreciation, Depletion & Amortization & ARO (b) 28,965 19,669
--------- ---------
EBITDA $ 77,030 $ 46,814 65%
========= =========
Six Months Ended
June 30, 2005 June 30, 2004
------------- -------------
Net Income $ 53,571 $ 27,486 95%
Provision for Income taxes 27,966 12,602
Interest Expense, Net 12,631 14,045
Depreciation, Depletion & Amortization & ARO (b) 53,357 38,135
--------- ---------
EBITDA $ 147,525 $ 92,267 60%
========= ========
Three Months Ended
June 30, 2005 June 30, 2004
------------- -------------
NET CASH FLOW RECONCILIATIONS:
Net Cash Provided by Operating Activities $64,632 $37,493 72%
Increases and Decreases In:
Accounts Receivable 4,721 1,424
Accounts Payable and Accrued Liabilities (1,717) 568
Accrued Interest 1,840 2,624
------------ ------------
Cash Flow Before Working Capital Changes $ 69,476 $ 42,110 66%
============ ============
Six Months Ended
June 30, 2005 June 30, 2004
------------- -------------
Net Cash Provided by Operating Activities $ 129,284 $77,089 68%
Increases and Decreases In:
Accounts Receivable 4,739 3,446
Accounts Payable and Accrued Liabilities (113) (963)
Accrued Interest 702 1,300
------------ -------------
Cash Flow Before Working Capital Changes $ 134,612 $ 80,872 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
June 30, 2005 December 31, 2004
------------- -----------------
Assets:
Current Assets:
Cash and Cash Equivalents $ 27,728 $ 4,920
Other Current Assets 61,932 49,466
--------- ---------
Total Current Assets 89,660 54,386
Oil and Gas Properties 1,662,381 1,559,803
Other Fixed Assets 14,099 12,821
Less-Accumulated DD&A (702,299) (649,186)
--------- ---------
974,181 923,438
Other Assets 10,513 12,749
----------- -----------
$1,074,355 $ 990,573
========== =========
Liabilities:
Current Liabilities $ 76,003 $ 68,618
Long-Term Debt 350,000 357,500
Deferred Income Taxes 97,877 73,107
Asset Retirement Obligation 16,585 17,176
Lease Incentive Obligation 159 --
Stockholders' Equity 533,732 474,172
------- -------
$ 1,074,355 $ 990,573
=========== =========
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 Six Months Ended
June 30, 2005 Per Mcfe June 30, 2005 Per Mcfe
------------- -------- ------------- --------
Revenues:
Oil & Gas Sales $ 104,922 $ 6.60 $ 200,444 $ 6.38
Other Revenue (622) (0.04) (523) (0.02)
------- ------ ----- ------
104,300 6.56 199,921 6.36
------- ---- ------- ----
Costs and Expenses:
General and administrative, net 4,996 0.31 9,870 0.31
Depreciation, Depletion & Amortization 28,778 1.81 52,983 1.69
Accretion of asset retirement obligation
(ARO) 187 0.01 374 0.01
Lease Operating Costs 11,565 0.73 22,614 0.72
Severance & Other Taxes 10,709 0.67 19,912 0.63
Interest Expense, Net 6,287 0.40 12,631 0.40
----- ---- ------ ----
Total Costs & Expenses 62,522 3.93 118,384 3.77
------ ---- ------- ----
Income before Income Taxes 41,778 2.63 81,537 2.59
Provision for Income Taxes 13,896 0.87 27,966 0.89
------ ---- ------ ----
Net Income $ 27,882 $ 1.75 $ 53,571 $ 1.70
====== ==== ====== ====
Additional Information:
Capital Expenditures $ 57,240 $ 101,767
Capitalized Geological & Geophysical $ 3,890 $ 7,333
Capitalized Interest Expense $ 1,714 $ 3,478
Deferred Income Tax $ 13,496 $ 27,566
Note: Items may not total due to rounding
--more--
SWIFT ENERGY COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
(In Thousands)
Six Months Ended,
June 30, 2005 June 30, 2004
- ------------- -------------
Cash Flows From Operating Activities:
Net Income $ 53,571 $ 27,486
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities -
Depreciation, Depletion, and Amortization 52,983 37,805
Accretion of Asset Retirement Obligation (ARO) 374 331
Deferred Income Taxes 27,566 12,196
Debt retirement cost - cash and non-cash --- 2,691
Other 118 364
Change in Assets and Liabilities -
Increase in Accounts Receivable (4,739) (3,446)
Increase in Accounts Payable and Accrued 113 963
Liabilities
Decrease in Accrued Interest (702) (1,300)
---------------- -------------
Net Cash Provided by Operating Activities 129,284 77,089
---------------- -------------
Cash Flows From Investing Activities:
Additions to Property and Equipment (101,767) (85,926)
Proceeds from the Sale of Property and Equipment 2,340 1,275
Net Cash Distributed as Operator of Oil & Gas Properties (3,841) (5,781)
Net Cash Received as Operator of Partnerships and Joint Ventures 243 224
Other 50 (18)
---------------- -------------
Net Cash Used in Investing Activities (102,974) (90,226)
---------------- -------------
Cash Flows From Financing Activities:
Proceeds from long-term debt --- 150,000
Payment of long-term debt --- (32,076)
Payments of debt issuance cost --- (4,206)
Payments of debt retirement costs --- (1,792)
Net Payments of Bank Borrowings (7,500) (15,900)
Net Proceeds from Issuance of Common Stock 3,999 2,924
---------------- -------------
Net Cash (used in) Provided by Financing Activities (3,501) 98,949
---------------- -------------
Net Increase in Cash and Cash Equivalents 22,808 85,813
Cash and Cash Equivalents at the Beginning of the Period 4,920 1,066
---------------- -------------
Cash and Cash Equivalents at the End of the Period $ 27,728 $ 86,879
=============== ===========
Note: Items may not total due to rounding
SWIFT ENERGY COMPANY
OPERATIONAL INFORMATION
QUARTERLY COMPARISON -- SEQUENTIAL & YEAR-OVER-YEAR
(Unaudited)
Three Months Ended Three Months Ended
Percent Percent
June 30, 2005 March 31, 2005 Change June 30, Change
------------- -------------- ------ -------- ------
2004
Total Company Production:
Oil & Natural Gas Equivalent (Bcfe) 15.90 15.52 2% 14.25 12%
Natural Gas (Bcf) 6.09 6.26 (3%) 5.78 5%
Crude Oil (MBbl) 1,426 1,321 8% 1,142 25%
NGL (MBbl) 209 223 (6%) 269 (22%)
Domestic Production:
Oil & Natural Gas Equivalent (Bcfe) 11.95 10.98 9% 10.20 17%
Natural Gas (Bcf) 3.20 3.02 6% 3.00 7%
Crude Oil (MBbl) 1,339 1,184 13% 1,021 31%
NGL (MBbl) 118 143 (17%) 179 (34%)
New Zealand Production:
Oil & Natural Gas Equivalent (Bcfe) 3.95 4.54 (13%) 4.05 (2%)
Natural Gas (Bcf) 2.89 3.24 (11%) 2.78 4%
Crude Oil (MBbl) 87 137 (36%) 122 (28%)
NGL (MBbl) 90 80 14% 90 1%
Total Company Average Prices:
Combined Oil & Natural Gas ($/Mcfe) $ 6.60 $ 6.16 7% $ 5.04 31%
Natural Gas ($/Mcf) $ 4.67 $ 4.25 10% $ 4.19 12%
Crude Oil ($/Bbl) $ 50.24 $ 47.66 5% $ 37.24 35%
NGL ($/Bbl) $ 22.95 $ 26.79 (14%) $ 18.84 22%
Domestic Average Prices:
Combined Oil & Natural Gas ($/Mcfe) $ 7.53 $ 6.99 8% $ 5.86 28%
Natural Gas ($/Mcf) $ 6.13 $ 5.41 13% $ 6.09 1%
Crude Oil ($/Bbl) $ 50.21 $ 47.20 6% $ 37.22 35%
NGL ($/Bbl) $ 25.74 $ 31.79 (19%) $ 19.42 33%
New Zealand Average Prices:
Combined Oil & Natural Gas ($/Mcfe) $ 3.79 $ 4.13 (8%) $ 2.98 27%
Natural Gas ($/Mcf) $ 3.05 $ 3.17 (4%) $ 2.13 43%
Crude Oil ($/Bbl) $ 50.82 $ 51.68 (2%) $ 37.37 36%
NGL ($/Bbl) $ 19.30 $ 17.80 8% $ 17.69 9%
--more--
SWIFT ENERGY COMPANY
THIRD QUARTER AND FULL YEAR 2005
GUIDANCE ESTIMATES
Actual Guidance Guidance
For Second For Third For Full
Quarter 2005 Quarter 2005 Year 2005
Production Volumes (Bcfe) 15.9 15.75 - 16.75 64.0 - 66.5
Domestic Volumes (Bcfe) 12.0 11.75 - 12.25 47.5 - 49.0
New Zealand Volumes (Bcfe) 4.0 4.0 - 4.5 16.5 - 17.5
Production Mix:
Domestic
Natural Gas (Bcf) 3.20 3.0 - 3.2 12.3 - 12.9
Crude Oil (MBbl) 1,339 1,355 - 1,400 5,340 - 5,480
Natural Gas Liquids (MBbl) 118 100 - 110 525 - 550
New Zealand
Natural Gas (Bcf) 2.89 3.0 - 3.2 11.5 - 12.2
Crude Oil (MBbl) 87 130 - 150 575 - 600
Natural Gas Liquids (MBbl) 90 80 - 90 260 - 290
Product Pricing (Note 1):
Domestic Pricing:
Natural Gas (per Mcf)
NYMEX differential (Note 2) ($0.60) ($0.65) - ($0.85) ($0.70) - ($0.90)
Crude Oil (per Bbl)
NYMEX differential (Note 3) ($3.01) ($3.00) - ($4.00) ($2.50) - ($3.50)
NGL (per Bbl)
Percent of NYMEX Crude 51% 45% - 55% 45% - 55%
New Zealand Pricing:
Natural Gas (per Mcf) (Note 4) $3.05 $3.00 -- $3.15 $3.00 -- $3.20
Crude Oil (per Bbl)
NYMEX differential (Note 3 & 5) ($2.40) ($2.50) - ($3.50) ($2.50) - ($3.50)
NGL (per Bbl)
Contract Price (Note 6) $19.30 $17.00 - $19.00 $16.50 - $18.50
Oil & Gas Production Costs:
Domestic
Lease Operating Costs (per Mcfe) $0.71 $0.80 - $0.85 $0.75 - $0.80
Severance & Ad Valorem Taxes
(as % of Revenue dollars) 10.8% 11.0% - 12.0% 11.0% - 12.0%
New Zealand
Lease Operating Costs (per Mcfe) $0.77 $0.84 - $0.89 $0.75 - $0.80
Government Royalty
(as % of Revenue dollars) 6.5% 8.0% - 9.0% 8.0% - 9.0%
--more--
SWIFT ENERGY COMPANY
THIRD QUARTER AND FULL YEAR 2005
GUIDANCE ESTIMATES
(In Thousands Except Per Production Unit Amounts)
Actual Guidance Guidance
For Second For Third For Full
Quarter 2005 Quarter 2005 Year 2005
Other Costs:
G&A per Mcfe $0.31 $0.32 - $0.36 $0.30 - $0.34
Interest Expense per Mcfe $0.40 $0.37 - $0.41 $0.38 - $0.42
DD&A per Mcfe $1.81 $1.80 - $1.86 $1.75 - $1.80
Supplemental Information:
Capital Expenditures
Operations $ 51,636 $65,000 - $75,000 $202,200 - $229,100
Acquisition/Dispositions, net $ -- ($1,000) - ($5,000) ($5,000) - ($15,000)
Capitalized G&G (Note 7) $ 3,890 $ 4,000 - $ 4,500 $ 16,000 - $18,000
Capitalized Interest $ 1,714 $ 1,700 - $ 1,900 $ 6,800 - $ 7,900
Total Capital Expenditures $ 57,240 $ 69,700 - $76,400 $220,000 - $240,000
Basic Weighted Average Shares 28,377 28,500 - 28,900 28,400 - 29,200
Diluted Computation:
Weighted Average Shares 29,009 29,200 - 29,700 29,000 - 30,000
Effective Tax Rate (Note 8) 33.3% 35.5% - 36.5% 35.5% - 36.5%
Deferred Tax Percentage 98% 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 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, availability of
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 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.
Company Contact
- ---------------
Scott A. Espenshade
Director of Corporate Development
and Investor Relations
(281) 874-2700, (800) 777-2412
16825 Northchase Drive, Suite 400, HOuston, TX 77060
www.swiftenergy.com