Exhibit 99
SWIFT ENERGY ANNOUNCES:
RECORD 2005 FULL YEAR EARNINGS INCREASING 69% TO $115.8
-------------------------------------------------------
MILLION, OR $3.95/SHARE, AND
----------------------------
RECORD 2005 Q4 EARNINGS INCREASING 29% TO $34.7 MILLION, OR
-----------------------------------------------------------
$1.16/SHARE
-----------
HOUSTON, February 8, 2006 - Swift Energy Company (NYSE: SFY) announced today
record net income of $34.7 million, or $1.16 per diluted share for the fourth
quarter 2005, an increase of 29% compared to $26.8 million, or $0.93 per diluted
share, earned in the same quarter of 2004. Fourth quarter adjusted cash flow
from operations of $84.3 million, or $2.83 per diluted share (cash flow before
working capital changes, a non-GAAP measure - see page 8 for reconciliation to
net cash provided by operating activities of $64.9 million) increased 30%
compared to the adjusted number of $64.7 million, or $2.25 per diluted share,
for the fourth quarter of 2004. Production for the fourth quarter 2005 totaled
14.7 Billion cubic feet equivalent ("Bcfe"), with 11.0 Bcfe and 3.7 Bcfe of
production from domestic and New Zealand operations, respectively.
Swift Energy achieved record 2005 production, which increased approximately 2%
to 59.6 Bcfe, with 43.0 Bcfe produced domestically and 16.6 Bcfe produced in New
Zealand. This level of production compares to 2004 production of 58.3 Bcfe (42.1
Bcfe domestic, 16.3 Bcfe New Zealand). While production was impacted by the
hurricane activity in the second half of 2005, all of Swift Energy's operations
in southern Louisiana are back on production at or above pre-Katrina production
levels, except for the Cote Blanche Island Field, and the major facility
expansion projects at Lake Washington Field in Plaquemines Parish, Louisiana are
in the final commissioning stages.
For the year-ended 2005, Swift Energy had record net income of $115.8 million, a
69% increase, or $3.95 per diluted share compared to $68.5 million of net income
for 2004, or $2.41 per diluted share. Adjusted cash flow from operations for the
year-ended 2005 increased 50% to $287.7 million, or $9.82 per diluted share,
compared to $192.3 million, or $6.78 per diluted share, for the year-ended 2004.
Swift Energy also reported record total revenues of $423.2 million for the
year-end 2005, an increase of 36% over 2004 revenue levels. Increased revenues,
net income and cash flow in 2005 are primarily the result of higher commodity
prices and our increased levels of production.
-more-
Terry Swift, CEO of Swift Energy, commented, "During 2005, the folks at Swift
Energy Company responded admirably, enabling Swift Energy to make a remarkable
recovery from the disruption Hurricanes Katrina and Rita caused to our
operations in South Louisiana. Through the efforts of our people, Swift Energy
has just recorded its best financial results in the history of the Company. Our
recent exploration successes in the Lake Washington area at Newport and Bondi,
which tested at combined rates of over 11,000 barrels of oil equivalent per day,
illustrate the significant growth potential that we have developed from within
our South Louisiana 3D seismic data. A continued robust commodity price
environment together with our projected production growth of 14% to 18% should
provide Swift Energy the opportunity to again reach new records in 2006."
Revenues and Expenses for the Fourth Quarter
Total revenues for the fourth quarter of 2005 increased 24% to a record $122.5
million from the $98.9 million of revenues generated in the fourth quarter of
2004. This increase was attributable to higher commodity prices despite the
shut-in and deferral of production necessitated by the hurricanes and resultant
recovery efforts.
Lease operating expenses ("LOE"), before severance and ad valorem taxes, were
$0.85 per thousand cubic feet equivalent ("Mcfe") in the fourth quarter of 2005,
which increased appreciably from $0.71 per Mcfe for these expenses in the fourth
quarter of 2004. While the Company maintained approximately the same level of
gross expenses for LOE during the fourth quarter of 2005 compared with the same
quarter in 2004, the per unit level of LOE expense was much higher than
originally projected due to lower production than expected as a result of the
hurricanes. Severance and ad valorem taxes were also up appreciably to $0.86 per
Mcfe from $0.64 per Mcfe in the comparable periods due to higher commodity
prices.
Depreciation, depletion and amortization expenses increased to $2.09 per Mcfe in
the fourth quarter of 2005 from $1.51 per Mcfe in the comparable period in 2004,
primarily as a result of increased estimates for future development costs,
changes in reserves estimates and additional capital expenditures during the
year. General and administrative expenses increased to $0.44 per Mcfe during the
fourth quarter 2005 from $0.33 per Mcfe in the same period in 2004. This
increase was primarily attributable to the hurricane-induced production shut-in
plus additional salaries and benefits associated with our expanded workforce and
the additional expensing of certain stock compensation. Interest expense per
unit increased slightly to $0.41 per Mcfe in the fourth quarter 2005 compared to
$0.40 per Mcfe for the same period in 2004.
Fourth Quarter 2005 Production & Pricing
Swift Energy's fourth quarter 2005 production was 14.7 Bcfe, an increase of 9%
sequentially from the 13.5 Bcfe produced in the third quarter of 2005. However,
fourth quarter production decreased 8% from the 15.9 Bcfe produced in the same
period in 2004. As previously reported, Hurricanes Katrina and Rita caused a
domestic production decrease and deferred approximately 3.0 to 3.5 Bcfe of
domestic production from the fourth quarter (on top of another estimated 3.0
Bcfe of deferred production in the third quarter of 2005). Fourth quarter 2005
production included 11.0 Bcfe of domestic production, a 2% decrease, and 3.7
Bcfe produced in New Zealand, a 20% decrease, in both cases when compared to
production in the same period in 2004. New Zealand production decreased as a
result of natural declines in natural gas production, as well as an additional
crude oil lifting in the fourth quarter 2004 compared to the number of liftings
in the fourth quarter 2005.
-more-
In the fourth quarter of 2005, Swift Energy realized an aggregate global average
price of $8.34 per Mcfe, an increase of 34% from fourth quarter 2004 price
levels, which averaged $6.23 per Mcfe. Domestically, the Company realized an
aggregate average price of $9.77 per Mcfe, an increase of 36% over the $7.17
received in the fourth quarter of 2004. In New Zealand, the Company received an
aggregate average price of $4.04 per Mcfe for the fourth quarter in 2005, an
increase of 3% over the $3.93 per Mcfe realized in the same period of 2004.
Swift Energy's average fourth quarter 2005 domestic crude oil prices increased
26% to $58.36 per barrel from $46.17 per barrel realized in the same period of
2004. Meanwhile, domestic natural gas prices averaged $10.89 per thousand cubic
feet ("Mcf") in the fourth quarter of 2005, an increase of 67% from the $6.53
per Mcf received during the same period in 2004. Prices for natural gas liquids
("NGLs") domestically averaged $37.99 per barrel in the fourth quarter of 2005,
a 25% increase over fourth quarter 2004 NGL prices of $30.43.
In New Zealand, the sales price of Swift Energy's crude oil averaged $57.61 per
barrel in the fourth quarter of 2005, a 21% 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 fourth quarter of 2005 under its current
contracts, a 7% increase over the $2.86 per Mcf received in the same 2004
period. The Company's NGL contracts yielded an average price of $18.65 per
barrel for the fourth quarter of 2005. New Zealand natural gas and NGL price
contracts are remitted in New Zealand dollars, which has remained strong during
the fourth quarter 2005 against the U.S. dollar compared to the same period in
2004.
2005 Reserves and Capital Expenditures
As previously announced, Swift Energy ended 2005 with total proved reserves of
762 Bcfe, a decrease of 5% from 800 Bcfe at year-end 2004, which resulted
primarily from the delays in drilling activity necessitated by hurricane damage
and recovery efforts interrupting the Company's drilling program. Proved
developed reserves were 50% of total reserves at year-end 2005 compared to 56%
at the previous year-end and were 51% crude oil at year-end. Fourth quarter
acquisitions with reserves that were approximately 70% proved undeveloped were
one of the significant items that contributed to the increase. Of our two
largest core areas, the Lake Washington area contains approximately 37% and the
AWP Olmos area has 29% of the proved developed reserves. Approximately 42% of
proved undeveloped reserves ("PUD") at year-end 2005 were located in the Lake
Washington area (26%) and in the AWP Olmos area (16%), both of which are
characterized as long life fields. Year-end reserves contain only a minor amount
of the potential reserves from the Bondi and Newport discoveries and which Swift
Energy believes it will be able to develop over the next several years. All of
the Company's reserves are audited annually by H.J. Gruy and Associates, Inc,
independent petroleum consultants.
Domestic reserves decreased slightly to 644 Bcfe compared with 653 Bcfe of
domestic reserves at year-end 2004. This domestic reserves total includes 29
Bcfe of proved reserves attributable to the recent South Louisiana acquisitions,
which were closed during the fourth quarter. Domestic proved reserves, making up
85% of total proved reserves at year-end 2005, are located in the Lake
Washington area (31% of total reserves), AWP Olmos area (23% of total reserves),
Toledo Bend area (12% of total reserves), Bay de Chene and Cote Blanche Island
areas (10% of total reserves), and other domestic properties (9% of total
reserves).
-more-
In New Zealand, year-ended 2005 proved reserves declined by 20% to 118 Bcfe from
147 Bcfe at year-end 2004. The principal reason for the decline was that Swift
Energy New Zealand's 2005 drilling campaign was focused on development drilling
for the conversion of PUDs and a resulting downward revision related to drilling
results in the Kauri sands in the Rimu/Kauri area.
Capital expenditures in 2005 totaled $264.5 million, with $215.8 million spent
domestically and $48.7 million spent in New Zealand. Swift Energy's pre-tax
present value (PV-10) of its proved reserves totaled nearly $3.2 billion, with
approximately $2.9 billion in value representing domestic interests and New
Zealand contributing $311 million to the total. This is an increase of 57% over
year-end 2004 PV-10 value. These values were calculated in accordance with SEC
guidelines, using a December 31, 2005 crude oil realized price of $59.96 per
barrel and a $9.67 per Mcfe realized price for natural gas for domestic
production and $60.98 per barrel and $3.33 per Mcfe for New Zealand crude oil
and natural gas prices, respectively. (See page 7 for a reconciliation of PV-10
value to the after-tax Standardized measure of Discounted Future Net Cash Flows)
2005 and Fourth Quarter Drilling Report
In 2005, Swift Energy drilled and completed 45 of 64 wells for a 70% success
rate. Domestically, Swift Energy completed 37 of 45 development wells and 5 of 9
exploration wells. In New Zealand, the Company completed 2 of 5 development
wells and 1 of 5 exploration wells in 2005. For the fourth quarter 2005, Swift
Energy successfully completed 10 of 18 wells. Of these wells, 14 were drilled
domestically, of which 1 was a development well successfully completed in the
Lake Washington area, 5 were development wells successfully completed in the AWP
Olmos area in South Texas and 2 were development wells in the Garcia Ranch area
in South Texas. Swift Energy was also successful on 2 of 4 domestic exploration
wells in the fourth quarter 2005. The successful exploration wells included the
previously announced Bondi prospect and Newport offset well, both in the Lake
Washington area and the two unsuccessful wells were in Lake Washington and Bay
de Chene Fields. In New Zealand, the Company had a successful development well
and was unsuccessful on 3 exploration wells in the fourth quarter 2005.
Operations Update
Swift Energy has returned all affected fields to pre-Katrina production levels
or higher, except Cote Blanche Island Field in St. Mary's Parish, Louisiana,
which had average production of approximately 375 barrels of oil equivalent
("Boe") per day in August 2005. Cote Blanche Island is expected to be restarted
late in the first quarter of 2006. As previously reported, significant facility
upgrades in the Lake Washington Field are being completed and commissioned
during the first quarter 2006. Swift Energy's Lake Washington average production
rate for the month of December 2005 was approximately 14,400 net Boe per day.
This production is mainly from the shallow and intermediate sands in the Lake
Washington Field. Two deeper tests that had been reported earlier include the
Newport prospect downdip delineation well and the Bondi prospect initial
exploration well. These two wells tested at combined rates up to 10,712 barrels
of oil per day ("B/d") and 7.3 million cubic of gas per day ("MMcf/d") from four
sand intervals totaling 283 feet of net pay, two in each well. The Newport
delineation well is expected to be placed on production during the second
quarter of 2006. The Bondi discovery well is located approximately five miles to
the northwest of the field's facility infrastructure and is not expected to be
on production until the second-half of 2006. Actual production sales rates for
the Bondi and Newport discoveries will be determined based on additional
reservoir testing, state allowables and facility capacities.
Swift Energy continues to have seven drilling rigs and a completion rig
currently operating on its behalf. The Company expects to begin drilling the
second delineation well in the Newport discovery area in the first quarter 2006.
-more-
Earnings Conference Call
Swift Energy will conduct a live conference call today, February 8, at 9:00 a.m.
CST to discuss fourth quarter and full year 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 February 8 until February 15, by dialing 973-341-3080 and using pin
#6910071. 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.
2006 Analyst/Investor Meeting
Swift Energy Company will be hosting a meeting with financial analysts,
portfolio managers and investors on February 23, 2006 in Houston, Texas. At this
meeting, Swift Energy's management will provide an annual briefing that will
include an update on certain 2005 results as well as covering operational and
financial plans and guidance for first quarter and full year 2006. An audio
(listen-only) webcast accompanied with the slides of the Houston presentation
will be available on the Company's website www.swiftenergy.com by clicking on
the event hyperlink commencing on February 23, 2006. The meeting in Houston
begins at 8:00 a.m. CST on Thursday, February 23, and is being held at the
Marriott Woodlands Waterway Hotel and Convention Center on Lake Robbins Drive in
The Woodlands, Texas. Anyone interested in attending this meeting should contact
the Company's Investor Relation Department at 1-800-777-2412. 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 26-year
history, Swift Energy has delivered long-term growth of its proved oil and gas
reserves and production, with per share growth rates of 22% and 29%,
respectively. This was accomplished with 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 labor,
services and supplies, hurricanes or tropical storms disrupting 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 Year Ended
December 31, December 31,
2005 2004 Percent 2005 2004 Percent
---- ---- Change ---- ---- Change
------ ------
Revenues:
Oil & Gas Sales $ 122,315 $ 98,854 24% $ 423,766 $ 311,285 36%
Other 137 81 70 (540) (1,008) 46%
-------- --------- -------- --------
Total Revenue $ 122,452 $ 98,935 24% $ 423,226 $ 310,277 36%
Net Income $ 34,701 $ 26,834 29% $ 115,778 $ 68,451 69%
Basic EPS $ 1.20 $ 0.96 26% $ 4.06 $ 2.46 65%
Diluted EPS $ 1.16 $ 0.93 25% $ 3.95 $ 2.41 64%
Net Cash Provided By
Operating Activities $ 64,874 $ 56,163 16% $ 285,333 $ 182,583 56%
Net Cash Provided By
Operating Activities, Per Diluted Share $ 2.18 $ 1.96 11% $ 9.74 $ 6.44 51%
Cash Flow Before Working Capital
Changes(1) (non-GAAP measure) $ 84,310 $ 64,667 30% $ 287,741 $ 192,320 50%
Cash Flow Before Working
Capital Changes, Per Diluted Share $ 2.83 $ 2.25 26% $ 9.82 $ 6.78 45%
Weighted Average
Shares Outstanding 28,815 28,046 3% 28,496 27,822 2%
EBITDA(1) (non-GAAP measure) $ 90,869 $ 72,268 26% $ 311,552 $ 211,338 47%
Production (Bcfe): 14.7 15.9 (8%) 59.6 58.3 2%
Domestic 11.0 11.3 (2%) 43.0 42.1 2%
New Zealand 3.7 4.6 (20%) 16.6 16.3 2%
Realized Price ($/Mcfe): $8.34 $6.23 34% $7.11 $5.34 33%
Domestic $9.77 $7.17 36% $8.27 $6.15 34%
New Zealand $4.04 $3.93 3% $4.10 $3.24 27%
<FN>
(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.
</FN>
SWIFT ENERGY COMPANY
Reconciliation of PV-10 value to Standardized Measure
of Discounted Future Net Cash Flows
December 31, 2005 PV-10 Value
(Unaudited)
(In Millions)
Total Domestic New Zealand
PV-10 Value $ 3,171 $ 2,860 $ 311
Future Income Taxes (discounted at 10%) (984) (942) (42)
ARO (b) (discounted at 10%) (27) (23) (4)
------------- ------------- -------------
Standardized Measure of Discounted Future Net
Cash Flows relating to oil and gas reserves $ 2,160 $ 1,895 $ 265
========= ========= =======
Reconciliation of GAAP (a) to non-GAAP Measures
EBITDA to Net Income
(Unaudited)
(In Thousands)
Below is a reconciliation of EBITDA to Net Income.
Three Months Ended
Dec. 31, 2005 Dec. 31, 2004
NET INCOME TO EBITDA RECONCILIATIONS:
Net Income $ 34,701 $ 26,834 29%
Provision for Income taxes 19,300 15,046
Interest Expense, Net 6,048 6,282
Depreciation, Depletion & Amortization & ARO (b) 30,820 24,106
-------- --------
EBITDA $ 90,869 $ 72,268 26%
======== ========
Year Ended
Dec. 31, 2005 Dec. 31, 2004
Net Income $ 115,778 $ 68,451 69%
Provision for Income taxes 62,661 32,989
Interest Expense, Net 24,873 27,643
Depreciation, Depletion & Amortization & ARO (b) 108,239 82,254
--------- ----------
EBITDA $ 311,552 $ 211,338 47%
========= ==========
(a) GAAP--Generally Accepted Accounting Principles
(b) Includes accretion of asset retirement obligation
Note: Items may not total due to rounding
SWIFT ENERGY COMPANY
Reconciliation of GAAP to non-GAAP Measures
(Unaudited)
(In Thousands)
Below is a reconciliation of Cash Flow Before Working Capital Changes to Net
Cash Provided by Operating Activities.
Three Months Ended
Dec. 31, 2005 Dec. 31, 2004
NET CASH FLOW RECONCILIATIONS:
Net Cash Provided by Operating Activities $ 64,874 $ 56,163 16%
Increases and Decreases In:
Accounts Receivable 21,941 5,100
Accounts Payable and Accrued Liabilities (4,333) 1,559
Accrued Interest 1,828 1,844
------ ------
Cash Flow Before Working Capital Changes $ 84,310 $ 64.667 30%
=========== ============
Year Ended
Dec. 31, 2005 Dec. 31, 2004
Net Cash Provided by Operating Activities $ 285,333 $ 182,583 56%
Increases and Decreases In:
Accounts Receivable 6,778 11,041
Accounts Payable and Accrued Liabilities ( 5,072) (843)
Accrued Interest 701 (461)
-------- -------
Cash Flow Before Working Capital Changes $ 287,741 $ 192,320 50%
========== =========
Note: Items may not total due to rounding
SWIFT ENERGY COMPANY
SUMMARY BALANCE SHEET INFORMATION
(Unaudited)
(In Thousands)
As of As of
December 31, 2005 December 31, 2004
----------------- -----------------
Assets:
Current Assets:
Cash and Cash Equivalents $ 53,005 $ 4,920
Other Current Assets 62,051 49,466
------ ------
Total Current Assets 115,055 54,386
Oil and Gas Properties 1,819,420 1,559,803
Other Fixed Assets 15,313 12,821
Less-Accumulated DD&A (755,699) (649,186)
--------- ---------
1,079,034 923,438
Other Assets 10,324 12,749
------ ------
$1,204,413 $ 990,573
========== =========
Liabilities:
Current Liabilities $ 98,421 $ 68,618
Long-Term Debt 350,000 357,500
Deferred Income Taxes 129,307 73,107
Asset Retirement Obligation 19,095 17,176
Lease Incentive Obligation 271 --
Stockholders' Equity 607,318 474,172
----------- ---------
$ 1,204,413 $ 990,573
=========== =========
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,
Dec. 31, 2005 Per Mcfe Dec. 31, 2005 Per Mcfe
----------------------------------- -----------------------------------
Revenues:
Oil & Gas Sales $ 122,315 $ 8.34 $ 423,766 $ 7.11
Other Revenue 137 0.01 (540) (0.01)
------ ---- ------- ------
122,452 8.35 423,226 7.10
------- ---- ------- ----
Costs and Expenses:
General and administrative, net 6,502 0.44 22,176 0.37
Depreciation, Depletion & Amortization 30,624 2.09 107,478 1.80
Accretion of asset retirement obligation
(ARO) 196 0.01 761 0.01
Lease Operating Costs 12,487 0.85 47,322 0.79
Severance & Other Taxes 12,594 0.86 42,177 0.71
Interest Expense, Net 6,048 0.41 24,873 0.42
----- ---- ------ ----
Total Costs & Expenses 68,451 4.67 244,787 4.11
------ ---- ------- ----
Income before Income Taxes 54,001 3.68 178,440 2.99
Provision for Income Taxes 19,300 1.32 62,661 1.05
------ ---- ------ ----
Net Income $ 34,701 $ 2.37 $ 115,778 $ 1.94
====== ==== ======= ====
Additional Information:
Capital Expenditures $ 106,350 $ 264,475
Capitalized Geological & Geophysical $ 5,460 $ 18,824
Capitalized Interest Expense $ 1,936 $ 7,199
Deferred Income Tax $ 19,300 $ 61,911
Note: Items may not total due to rounding
SWIFT ENERGY COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
(In Thousands)
Year Ended,
Dec. 31, 2005 Dec 31, 2004
------------- ------------
Cash Flows From Operating Activities:
Net Income $ 115,778 $ 68,451
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities -
Depreciation, Depletion, and Amortization 107,478 81,581
Accretion of Asset Retirement Obligation (ARO) 761 674
Deferred Income Taxes 61,911 32,513
Debt retirement cost - cash and non-cash --- 9,536
Other 1,813 (435)
Change in Assets and Liabilities -
Increase in Accounts Receivable (6,778) (11,041)
Increase in Accounts Payable and Accrued 5,072 843
Liabilities
Increase/(Decrease) in Accrued Interest (701) 461
------------- ----------
Net Cash Provided by Operating Activities 285,333 182,583
------------- ----------
Cash Flows From Investing Activities:
Additions to Property and Equipment (235, 548) (171,095)
Proceeds from the Sale of Property and Equipment 7,297 5,058
Acquisitions of Properties (28,927) (27,196)
Net Cash Received as Operator of Oil & Gas Properties 17,797 3,922
Net Cash Received/(Distributed) as Operator of Partnerships and Joint
Ventures (948) 884
Other 255 (659)
------------- ----------
Net Cash Used in Investing Activities (240,074) (189,086)
------------- -----------
Cash Flows From Financing Activities:
Proceeds from long-term debt --- 150,000
Payment of long-term debt --- (125,000)
Payments of debt issuance cost --- (4,334)
Payments of debt retirement costs --- (6,735)
Net Payments of Bank Borrowings (7,500) (8,400)
Net Proceeds from Issuance of Common Stock 10,325 4,825
-------------- ----------
Net Cash Provided by Financing Activities 2,825 10,357
----------- ----------
Net Increase in Cash and Cash Equivalents 48,084 3,854
Cash and Cash Equivalents at the Beginning of the Period 4,920 1,066
------------- ----------
Cash and Cash Equivalents at the End of the Period $ 53,005 $ 4,920
========== ==========
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
Dec. 31, Sept. 30, Change Dec. 31, Change
2005 2005 ------- 2004 -------
---- ---- ----
Total Company Production:
Oil & Natural Gas Equivalent (Bcfe) 14.67 13.50 9% 15.86 (8%)
Natural Gas (Bcf) 5.34 5.92 (10%) 6.12 (13%)
Crude Oil (MBbl) 1,353 1,059 28% 1,380 (2%)
NGL (MBbl) 202 204 (1%) 243 (17%)
Domestic Production:
Oil & Natural Gas Equivalent (Bcfe) 11.00 9.11 21% 11.26 (2%)
Natural Gas (Bcf) 2.67 2.85 (6%) 3.02 (12%)
Crude Oil (MBbl) 1,261 925 36% 1,223 3%
NGL (MBbl) 127 119 7% 150 (15%)
New Zealand Production:
Oil & Natural Gas Equivalent (Bcfe) 3.67 4.38 (16%) 4.60 (20%)
Natural Gas (Bcf) 2.67 3.07 (13%) 3.10 (14%)
Crude Oil (MBbl) 92 134 (31%) 157 (41%)
NGL (MBbl) 75 84 (11%) 93 (20%)
Total Company Average Prices:
Combined Oil & Natural Gas ($/Mcfe) $ 8.34 $ 7.48 11% $ 6.23 34%
Natural Gas ($/Mcf) $ 6.97 $ 5.29 32% $ 4.67 49%
Crude Oil ($/Bbl) $ 58.31 $ 59.66 (2%) $ 46.33 26%
NGL ($/Bbl) $ 30.83 $ 31.84 (3%) $ 26.01 19%
Domestic Average Prices:
Combined Oil & Natural Gas ($/Mcfe) $ 9.77 $ 8.96 9% $ 7.17 36%
Natural Gas ($/Mcf) $ 10.89 $ 7.68 42% $ 6.53 67%
Crude Oil ($/Bbl) $ 58.36 $ 59.44 (2%) $ 46.17 26%
NGL ($/Bbl) $ 37.99 $ 40.58 (6%) $ 30.43 25%
New Zealand Average Prices:
Combined Oil & Natural Gas ($/Mcfe) $ 4.04 $ 4.41 (8%) $ 3.93 3%
Natural Gas ($/Mcf) $ 3.05 $ 3.08 (1%) $ 2.86 7%
Crude Oil ($/Bbl) $ 57.61 $ 61.23 (6%) $ 47.57 21%
NGL ($/Bbl) $ 18.65 $ 19.50 (4%) $ 18.92 (1%)
SWIFT ENERGY COMPANY
FIRST QUARTER AND FULL YEAR 2006
GUIDANCE ESTIMATES
Actual Guidance Guidance
For Fourth For First For Full
Quarter 2005 Quarter 2006 Year 2006
Production Volumes (Bcfe) 14.67 15.5 - 16.5 68.0 - 70.5
Domestic Volumes (Bcfe) 11.0 11.9 - 12.5 53.0 - 55.0
New Zealand Volumes (Bcfe) 3.67 3.5 - 4.0 14.0 - 16.0
Production Mix:
Domestic
Natural Gas (Bcf) 2.67 3.0 - 3.2 13.0 - 14.1
Crude Oil (MBbl) 1,261 1,375 - 1,425 6,000 - 6,300
Natural Gas Liquids (MBbl) 127 115 - 130 650 - 680
New Zealand
Natural Gas (Bcf) 2.67 2.4 - 2.7 9.6 - 11.0
Crude Oil (MBbl) 92 115 - 125 480 - 550
Natural Gas Liquids (MBbl) 75 70 - 85 245 - 275
Product Pricing (Note 1):
Domestic Pricing:
Natural Gas (per Mcf)
NYMEX differential (Note 2) ($2.08) ($2.00) - ($2.50) ($1.25) - ($2.00)
Crude Oil (per Bbl)
NYMEX differential (Note 3) ($1.74) ($3.50) - ($4.50) ($3.00) - ($4.00)
NGL (per Bbl)
Percent of NYMEX Crude 63% 45% - 55% 50% - 60%
New Zealand Pricing:
Natural Gas (per Mcf) (Note 4) $3.05 $3.00 -- $3.15 $3.00 -- $3.25
Crude Oil (per Bbl)
NYMEX differential (Note 3 & 5) ($2.49) ($2.50) - ($3.50) ($2.50) - ($3.50)
NGL (per Bbl)
Contract Price (Note 6) $18.65 $17.50 - $18.50 $17.00 - $19.00
Oil & Gas Production Costs:
Domestic
Lease Operating Costs (per Mcfe) $0.84 $0.90 - $0.95 $0.80 - $0.85
Severance & Ad Valorem Taxes
(as % of Revenue dollars) 11% 11.0% - 12.0% 10.5% - 12.0%
New Zealand
Lease Operating Costs (per Mcfe) $0.87 $0.85 - $0.90 $0.90 - $0.95
Government Royalty
(as % of Revenue dollars) 7% 8.0% - 9.0% 7.0% - 9.0%
SWIFT ENERGY COMPANY
FIRST QUARTER AND FULL YEAR 2006
GUIDANCE ESTIMATES
(In Thousands Except Per Production Unit Amounts)
Actual Guidance Guidance
For Fourth For First For Full
Quarter 2005 Quarter 2006 Year 2006
Other Costs:
G&A per Mcfe (Note 7) $0.44 $0.41 - $0.45 $0.40 - $0.45
Interest Expense per Mcfe $0.41 $0.40 - $0.44 $0.35 - $0.39
DD&A per Mcfe $2.09 $2.15 - $2.20 $2.15 - $2.25
Supplemental Information:
Capital Expenditures
Operations $ 74,936 $ 74,200 - $79,400 $282,000 - $311,000
Acquisition/Dispositions, net $ 24,018 $ 0 - $(1,000) $(5,000) - $(10,000)
Capitalized G&G (Note 8) $ 5,460 $ 4,100 - $ 4,500 $ 16,000 - $ 16,500
Capitalized Interest $ 1,936 $ 1,700 - $ 2,100 $ 7,000 - $ 7,500
Total Capital Expenditures $ 106,350 $ 80,000 - $85,000 $300,000 - $325,000
Basic Weighted Average Shares 28,815 28,900 - 29,400 29,000 - 30,000
Diluted Computation:
Weighted Average Shares 29,798 29,900 - 30,500 30,000 - 30,800
Effective Tax Rate (Note 9) 35.7% 36.0% - 37.0% 36.0% - 37.0%
Deferred Tax Percentage 100% 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: SFAS 123R has been adopted in the first quarter 2006 and is included in
G&A Guidance.
Note 8: Does not include capitalized acquisition costs, incorporated in
acquisitions when occurred.
Note 9: Effective Tax rate guidance does not include any New Zealand currency
exchange fluctuations.
This press release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The opinions, forecasts,
projections, guidance or other statements other than statements of historical
fact, are forward-looking statements. These statements are based upon
assumptions that are subject to change and to risks, especially the uncertainty
of finding, replacing, developing or acquiring reserves, availability of labor,
services and supplies, hurricanes or tropical storms disrupting 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