Exhibit 99
SWIFT ENERGY ANNOUNCES RECORD THIRD QUARTER RESULTS:
EARNINGS INCREASE 85% TO A RECORD $50.8 MILLION ($1.68/SHARE);
--------------------------------------------------------------
PRODUCTION INCREASES BY 39% TO A RECORD 18.8 BCFE; AND
------------------------------------------------------
2006 PRODUCITON GUIDANCE IS INCREASED
-------------------------------------
HOUSTON, November 2, 2006 - Swift Energy Company (NYSE: SFY) announced today
record net income of $50.8 million in the third quarter of 2006, or $1.68 per
diluted share, an 85% increase compared to $27.5 million in net income, or $0.92
per diluted share, earned in the hurricane-affected third quarter of 2005.
Adjusted cash flow from operations (cash flow before working capital changes, a
non-GAAP measure - see page 7 for reconciliation to net cash provided by
operating activities of $126.9 million) increased 80% to $123.9 million, or
$4.10 per diluted share, compared to $68.8 million, or $2.31 per diluted share,
for the third quarter of 2005.
Production increased 39% for the third quarter of 2006 to a record 18.8 billion
cubic feet equivalent ("Bcfe") from the 13.5 Bcfe produced in the
hurricane-affected third quarter of 2005 and increased 15% sequentially from the
16.3 Bcfe produced in the second quarter of 2006. Third quarter 2006 production
included record domestic production of 15.2 Bcfe, a 67% increase, and 3.5 Bcfe
produced in New Zealand, a 19% decrease, in both cases when compared to
production in the same period in 2005.
Terry Swift, Chairman and CEO of Swift Energy, commented, "I am pleased to
report that Swift Energy had record production and earnings for the third
quarter 2006, showcasing the opportunities and embedded value in our operations.
The Lake Washington Field averaged over 18,500 net barrels of oil equivalent per
day of production for the third quarter 2006, surpassing our expected year-end
exit rate. As a result of activity-to-date, plus our recent Louisiana
acquisitions, we are increasing our 2006 annual production guidance to 70 to 71
Bcfe, from our previous guidance of 68 to 70.5 Bcfe for the year.
Within the next six months, Swift Energy expects to begin targeting additional
high impact opportunities in the Bay de Chene Field, which have been identified
using our regional 3D seismic database in South Louisiana. We are also eager to
integrate the five additional fields from our recent acquisition into our
expanding opportunity set at Swift Energy."
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SWIFT/2
Nine-Month Results for 2006
Through the first three quarters of 2006, Swift Energy had record production
totaling 51.6 Bcfe, an increase of 15% from 44.9 Bcfe produced last year during
the same period. Total revenues for the first nine months of 2006 were $456.8
million, up 52% from $300.8 million during the same period of 2006. During the
first nine months of 2006, net income increased 56% to $126.3 million ($4.20 per
diluted share) from $81.1 million ($2.77 per diluted share) in the first nine
months of 2005. Cash flow before changes in working capital (a non-GAAP measure,
see reconciliation on page 6) increased 55% in the first nine months of 2006 to
$315.7 million ($10.50 per diluted share) from $203.3 million ($6.94 per diluted
share) in the same period in 2005. Net cash provided by operating activities for
the first nine months of 2006 increased 41% to $310.7 million ($10.33 per
diluted share) from $220.5 million ($7.53 per diluted share) in the 2005 period.
Increased revenues, net income and cash flow in 2006 are primarily the result of
our overall increased levels of production and higher crude oil and natural gas
liquids prices.
Revenues and Expenses
Total revenues for the third quarter of 2006 increased 72% to $173.5 million
from the $100.9 million of revenues generated in the third quarter of 2005. This
increase is attributable to higher commodity prices and increased levels of
domestic crude oil production.
Lease operating expenses, before severance and ad valorem taxes, were $0.69 per
thousand cubic feet equivalent ("Mcfe") in the third quarter of 2006, a decrease
of 24% compared to $0.91 per Mcfe for these expenses in the third quarter of
2005. The decrease in lease operating expenses was primarily due to the $2.8
million, or $0.15 per Mcfe, resulting from the difference between the final
confidential settlement amount of all of our property damage insurance claims
related to Hurricanes Katrina and Rita and our lease operating expense related
insurance receivable previously recorded.
General and administrative expenses remained essentially flat at $0.43 per Mcfe
produced during the third quarter of 2006 compared to the same period in 2005,
which were negatively impacted during this quarter last year on a per Mcfe basis
primarily because of deferred production from the hurricanes. Depreciation,
depletion and amortization expense of $2.45 per Mcfe in the third quarter of
2006 increased from $1.77 per Mcfe in the comparable period in 2005, primarily
as a result of increased production, increased estimates for future development
costs and additional capital expenditures during the preceding twelve months.
Interest expense per unit of production decreased 33% to $0.31 per Mcfe in the
third quarter 2006 compared to $0.46 per Mcfe for the same period in 2005. Also,
severance and ad valorem taxes in the third quarter of 2006 were up appreciably
to $0.99 per Mcfe from $0.72 per Mcfe in the comparable period in 2005 due to
higher commodity prices and increased crude oil production in Louisiana.
Production & Pricing
Swift Energy's record production during the third quarter of 2006 totaled 18.8
Bcfe, an increase of 39% from the 13.5 Bcfe produced in the same quarter of 2005
and an increase of 15% when compared to production in the second quarter of
2006. Third quarter 2006 domestic production increased 67% to a record 15.2 Bcfe
from the 9.1 Bcfe produced in the hurricane-affected third quarter in 2005,
primarily due to increased production from the South Louisiana region. Due to
the hurricanes, approximately 2.9 Bcfe to 3.1 Bcfe of domestic production was
deferred from the third quarter of 2005. Third quarter domestic production was
also 16% higher than comparable production in the second quarter 2006
principally due to higher levels of production primarily from the Newport area
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SWIFT/3
in the Lake Washington field. Third quarter 2006 New Zealand production of 3.5
Bcfe decreased 19% from production in the same quarter in 2005 but increased 12%
from levels in the prior quarter due to additional crude oil liftings occurring
in the third quarter 2006. As a result of our domestic production increases, 71%
of Swift Energy's third quarter 2006 production was liquid hydrocarbons,
consisting of 64% crude oil and 7% natural gas liquids.
In the third quarter of 2006, Swift Energy realized an aggregate global average
price of $9.24 per Mcfe, an increase of 24% from third quarter 2005 price levels
when the global price averaged $7.48 per Mcfe. Domestically, the Company
realized an aggregate average price of $10.10 per Mcfe, an increase of 13% over
the $8.96 received in the third quarter of 2005. Average domestic crude oil
prices during the third quarter of 2006 increased 17% to $69.54 per barrel from
$59.44 per barrel realized in the same period in 2005. For the same periods,
average domestic natural gas prices declined 21% to $6.07 per thousand cubic
feet ("Mcf") from $7.68 during the same period in 2005. Prices for natural gas
liquids ("NGL") domestically averaged $42.37 per barrel in the third quarter of
2006, a 4% increase over third quarter 2005 NGL prices.
In New Zealand, Swift Energy realized an average price of $5.54 per Mcfe in the
third quarter of 2006, a 26% increase over the $4.41 average received in the
third quarter 2005. The Company's New Zealand based McKee blend crude oil sold
for an average $70.49 per barrel during the third quarter of 2006 compared to
$61.23 per barrel in the same period in 2005. Meanwhile, the Company had an
average realized price of $3.04 per Mcf for its New Zealand natural gas in the
third quarter of 2006, a 1% decrease from the $3.08 per Mcf received in the
comparable 2005 period, and its NGL contracts yielded an average price of $20.09
per barrel for the third quarter 2006 compared to $19.50 per barrel in the third
quarter of 2005, or a 3% increase.
Operations Update
Swift Energy successfully completed 11 of 14 wells in the third quarter of 2006.
Domestically, the Company completed 9 of 11 development wells, for a success
rate of 82% for the third quarter of 2006. In the Company's South Louisiana
region, Swift Energy successfully completed 5 of 7 development wells. Swift
Energy successfully completed 4 of 5 development wells in the Lake Washington
area, including one successful non-operated well. Swift Energy also completed 2
of 2 development wells in Cote Blanche Island and had 1 unsuccessful well in Bay
de Chene. Additionally, the Company successfully completed 3 development wells
targeting the Olmos sand in its AWP area in McMullen County, Texas.
The fourth well at the Newport prospect (SL 17990 #8 well) was completed and
tested in three separate zones and is undergoing production testing for
reservoir engineering data in each of these three zones to obtain additional
production and pressure data. A fifth well at the Newport prospect (SL 17990 #9)
was drilled and completed in the third quarter of 2006. The SL 17990 #9 well
encountered 5 sands with 327 feet of net pay (TVD) with 52 feet of net pay in a
newly encountered sand and had a maximum production test rate of 7,989 barrels
of oil equivalent per day ("Boe/d") on a 48/64-inch choke with a flowing tubing
pressure of 1,969 psi from this sand. This newly encountered sand is located
just below the set of four other sands previously seen in the Newport prospect.
The Company is currently drilling the SL 18907 #2 well in the Newport prospect
and plans to drill one more operated Newport well in 2006. Additionally, a
non-operated well (SL 17990 #1), which Swift Energy has a 50% working interest
in the completed horizon, was successfully drilled and completed in a recently
formed unit in the Newport area and is producing greater than 1,000 Boe/d. Swift
Energy also has a 50% working interest in another non-operated well currently
being drilled in the unitized horizons at Newport with at least one more
non-operated well expected to be drilled this year.
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SWIFT/4
Swift Energy has 1 barge rig currently operating in the Lake Washington Field,
which is scheduled for routine maintenance in the fourth quarter of 2006. The
Company has 3 barge rigs operating in the Bay de Chene Field, one of which will
move to Lake Washington following its current well. Swift Energy has contracted
for a fifth barge rig for 4 months and it is expected to commence drilling in
the Bay de Chene area late in the fourth quarter of 2006. Additionally, the
Company has 2 rigs operating in South Bearhead Creek.
In New Zealand, Swift Energy drilled 3 wells and was successful on 1 well and
suspended operations on another. The Company drilled 2 wells targeting the
Tikorangi limestone formation in the TAWN area and completed the Waihapa H-1
well, which is currently on production. The Waihapa 4ST well was suspended for
mechanical reasons until 2007. The Kowhai A-1 exploration well was drilled on
PEP 38742 in the northern Taranaki basin and was unsuccessful. The Trapper A-1
well, which had previously been plugged back from non-commercial deeper
horizons, was planned to be completed in the Tikorangi formation but is now
being plugged and abandoned due to mechanical reasons. Plans are underway to
complete the Goss well in the Tikorangi formation for testing and evaluation.
Acquisition Updates
Swift Energy has closed on the acquisition of certain additional interests (for
approximately $9.5 million) of several wells outstanding from the previously
announced acquisition of properties from BP America Production Company, the
majority of which closed on October 2, 2006. To date, the Company has closed on
approximately $169 million worth of properties related to this acquisition. A
few wells remain outstanding in this transaction.
Additionally, the Company has acquired the virtually all of the outstanding
interest in the South Bearhead Creek field, located in Beauregard Parish,
Louisiana from undisclosed sellers. Approximately 5.2 Bcfe of reserves were
acquired for $4.5 million effective November 1, 2006. Swift Energy now has
nearly 100% of the working interest in South Bearhead Creek Field.
Earnings Conference Call
Swift Energy will conduct a live conference call today, November 2, at 9:00 a.m.
CST to discuss third quarter 2006 financial results. To participate in this
conference call, dial 973-339-3086 five to ten minutes before the scheduled
start time and indicate your intention to participate in the Swift Energy
conference call. A digital replay of the call will be available later on
November 2 through November 9, by dialing 973-341-3080 and using pin #7762714.
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.
The United States Securities and Exchange Commission permits oil and gas
companies, in their filings with the SEC, to disclose only proved reserves that
a company has demonstrated by actual production or conclusive formation tests to
be economically and legally producible under existing economic and operating
conditions. We use certain terms in this press release, such as "probable and
possible reserves," that the SEC's guidelines strictly prohibit us from
including in filings with the SEC.
This press release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The opinions, forecasts,
projections, guidance or other statements other than statements of historical
fact, are forward-looking statements. These statements are based upon
assumptions that are subject to change and to risks, especially the uncertainty
of finding, replacing, developing or acquiring reserves; adequate availability
of skilled personnel, services and supplies; inherent risks in oil and gas
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SWIFT/5
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, hurricanes or tropical storms,
engineering and geologic information and changes in market conditions.
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SWIFT/6
SWIFT ENERGY COMPANY
SUMMARY FINANCIAL INFORMATION
(Unaudited)
(In Thousands Except Production, Per Share, and Price Amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
---- ---- Percent ---- ---- Percent
Change Change
------- -------
Revenues:
Oil & Gas Sales $ 173,369 $ 101,008 72% $ 453,316 $ 301,451 50%
Other 90 (154) NM 3,490 (677) NM
--------- --------- --------- ----------
Total Revenue $ 173,459 $ 100,854 72% $ 456,805 $ 300,774 52%
Net Income $ 50,812 $ 27,507 85% $ 126,295 $ 81,078 56%
Basic EPS $ 1.74 $ 0.96 81% $ 4.33 $ 2.86 52%
Diluted EPS $ 1.68 $ 0.92 82% $ 4.20 $ 2.77 52%
Net Cash Provided By
Operating Activities $ 126,927 $ 91,176 39% $ 310,683 $ 220,460 41%
Net Cash Provided By
Operating Activities, Per Diluted Share $ 4.21 $ 3.06 37% $ 10.33 $ 7.53 37%
Cash Flow Before Working Capital
Changes(1) (non-GAAP measure) $ 123,877 $ 68,821 80% $ 315,660 $ 203,344 55%
Cash Flow Before Working
Capital Changes, Per Diluted Share $ 4.10 $ 2.31 78% $ 10.50 $ 6.94 51%
Weighted Average
Shares Outstanding (Diluted) 30,184 29,786 1% 30,063 29,294 3%
EBITDA(1) (non-GAAP measure) $134,025 $ 73,158 83% $ 338,427 $ 220,682 53%
Production (Bcfe): 18.8 13.5 39% 51.6 44.9 15%
Domestic 15.2 9.1 67% 41.1 32.0 28%
New Zealand 3.5 4.4 (19%) 10.5 12.9 (18%)
Realized Price ($/Mcfe): $9.24 $7.48 24% $8.78 $6.71 31%
Domestic $10.10 $8.96 13% $9.81 $7.75 27%
New Zealand $5.54 $4.41 26% $4.76 $4.13 15%
<FN>
(1) See reconciliation on page 6. Management believes that the non-GAAP measures
EBITDA and cash flow before working capital changes are useful information to
investors because they are widely used by professional research analysts in the
valuation, comparison, rating and investment recommendations of companies within
the oil and gas exploration and production industry. Many investors use the
published research of these analysts in making their investment decisions.
</FN>
Note: Items may not total due to rounding
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SWIFT/7
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
September 30, 2006 September 30, 2005
------------------ ------------------
NET INCOME TO EBITDA RECONCILIATIONS:
Net Income $ 50,812 $ 27,507 85%
Provision for Income taxes 31,398 15,395
Interest Expense, Net 5,776 6,194
Depreciation, Depletion & Amortization(b) 46,039 24,062
--------- --------
EBITDA $ 134,025 $ 73,158 83%
========== =========
Nine Months Ended
September 30, 2006 September 30, 2005
------------------ ------------------
Net Income $126,295 $ 81,078 56%
Provision for Income taxes 73,879 43,361
Interest Expense, Net 17,436 18,825
Depreciation, Depletion & Amortization & ARO (b) 120,817 77,419
-------- --------
EBITDA $ 338,427 $ 220,682 53%
========= =========
Three Months Ended
September 30, 2006 September 30, 2005
------------------ ------------------
NET CASH FLOW RECONCILIATIONS:
Net Cash Provided by Operating Activities $126,927 $ 91,176 39%
Changes in Assets and Liabilities:
Increase/(Decrease) in Accounts Receivable 5,456 (19,901)
Increase in Accounts Payable and Accrued Liabilities (6,888) (626)
Decrease in Income Taxes Payable 211 --
Increase in Accrued Interest (1,830) (1,830)
------- ----------
Cash Flow Before Working Capital Changes $123,877 $ 68,821 80%
======== ===========
Nine Months Ended
September 30, 2006 September 30, 2005
------------------ ------------------
Net Cash Provided by Operating Activities $ 310,683 $ 220,460 41%
Changes in Assets and Liabilities:
Increase/(Decrease) in Accounts Receivable 14,548 (15,162)
Increase in Accounts Payable and Accrued Liabilities (7,404) (739)
Increase in Income Taxes Payable (338) (88)
Increase in Accrued Interest (1,828) (1,127)
----------- ----------
Cash Flow Before Working Capital Changes $ 315,660 $ 203,344 55%
============ ===========
<FN>
(a) GAAP--Generally Accepted Accounting Principles
(b) Includes accretion of asset retirement obligation
</FN>
Note: Items may not total due to rounding
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SWIFT/8
SWIFT ENERGY COMPANY
SUMMARY BALANCE SHEET INFORMATION
(Unaudited)
(In Thousands)
As of As of
September 30, 2006 December 31, 2005
------------------ -----------------
Assets:
Current Assets:
Cash and Cash Equivalents $ 95,118 $ 53,005
Other Current Assets 117,244 62,050
------- ------
Total Current Assets 212,362 115,055
Oil and Gas Properties 2,063,835 1,819,420
Other Fixed Assets 26,702 15,313
Less-Accumulated DD&A (875,820) (755,699)
--------- ---------
1,214,717 1,079,034
Other Assets 9,424 10,324
--------- ------
$1,436,503 $1,204,413
========== ==========
Liabilities:
Current Liabilities $ 117,553 $ 98,421
Long-Term Debt 350,000 350,000
Deferred Income Taxes 196,798 129,307
Asset Retirement Obligation 20,089 19,095
Lease Incentive Obligation 1,788 271
Stockholders' Equity 750,275 607,318
---------- -----------
$ 1,436,503 $ 1,204,413
=========== ===========
Note: Items may not total due to rounding
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SWIFT/9
SWIFT ENERGY COMPANY
SUMMARY INCOME STATEMENT INFORMATION
(Unaudited)
In Thousands Except Per Mcfe Amounts
Three Months Ended Nine Months Ended
Sept. 30, 2006 Per Mcfe Sept. 30, 2006 Per Mcfe
-------------------- ------------ ------------------- -------------
Revenues:
Oil & Gas Sales $ 173,369 $ 9.24 $ 453,316 $ 8.78
Other Revenue 90 0.01 3,490 0.07
-- ---- ------- ----
173,459 9.25 456,805 8.85
------- ---- ------- ----
Costs and Expenses:
General and administrative, net 8,018 0.43 23,323 0.45
Depreciation, Depletion & Amortization 45,868 2.45 120,151 2.33
Accretion of asset retirement obligation
(ARO) 172 0.01 666 0.01
Lease Operating Costs 12,926 0.69 45,844 0.89
Severance & Other Taxes 18,490 0.99 49,211 0.95
Interest Expense, Net 5,776 0.31 17,436 0.34
----- ---- ------ ----
Total Costs & Expenses 91,250 4.86 256,631 4.97
------ ---- ------- ----
Income before Income Taxes 82,209 4.38 200,174 3.88
Provision for Income Taxes 31,398 1.67 73,879 1.43
------ ---- ------ ----
Net Income $ 50,812 $ 2.71 $ 126,295 $ 2.45
====== ==== ======= ====
Additional Information:
Capital Expenditures $ 107,452 $ 291,308
Capitalized Geological & Geophysical $ 7,102 $ 18,472
Capitalized Interest Expense $ 2,231 $ 6,559
Deferred Income Tax $ 26,071 $ 67,169
Note: Items may not total due to rounding
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SWIFT/10
SWIFT ENERGY COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
(In Thousands)
Nine Months Ended,
Sept. 30, 2006 Sept. 30, 2005
-------------- --------------
Cash Flows From Operating Activities:
Net Income $ 126,295 $ 81,078
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities -
Depreciation, Depletion, and Amortization 120,151 76,853
Accretion of Asset Retirement Obligation (ARO) 666 566
Deferred Income Taxes 67,169 42,611
Stock-based Compensation 5,057 1,006
Other (3,678) 1,231
Change in Assets and Liabilities -
(Increase)/Decrease in Accounts Receivable (14,548) 15,162
Increase in Accounts Payable and Accrued 7,404 739
Liabilities
Increase in Income Taxes Payable 338 88
Increase in Accrued Interest 1,828 1,127
--------------- --------------
Net Cash Provided by Operating Activities 310,683 220,460
--------------- --------------
Cash Flows From Investing Activities:
Additions to Property and Equipment (291,308) (158,125)
Proceeds from the Sale of Property and Equipment 20,336 2,387
Net Cash Distributed as Operator of Oil & Gas Properties (4,194) (2,184)
Net Cash Received/(Distributed) as
Operator of Partnerships and Joint Ventures 855 (468)
Other (31) 64
---------------- --------------
Net Cash Used in Investing Activities (274,342) (158,325)
---------------- --------------
Cash Flows From Financing Activities:
Net Payments of Bank Borrowings --- (7,500)
Net Proceeds from Issuance of Common Stock 4,289 6,329
Excess Tax Benefits from stock-based Awards 1,484 ---
--------------- --------------
Net Cash (used in) Provided by Financing Activities 5,773 (1,171)
--------------- --------------
Net Increase in Cash and Cash Equivalents 42,113 60,964
Cash and Cash Equivalents at the Beginning of the Period 53,005 4,920
--------------- --------------
Cash and Cash Equivalents at the End of the Period $ 95,118 $ 65,884
============== ================
Note: Items may not total due to rounding
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SWIFT/11
SWIFT ENERGY COMPANY
OPERATIONAL INFORMATION
QUARTERLY COMPARISON -- SEQUENTIAL & YEAR-OVER-YEAR
(Unaudited)
Three Months Ended Three Months Ended
Percent Percent
Sept. 30, June 30, Change Sept. 30, Change
--------- -------- ------- --------- ------
2006 2006 2005
---- ---- ----
Total Company Production:
Oil & Natural Gas Equivalent (Bcfe) 18.76 16.28 15% 13.50 39%
Natural Gas (Bcf) 5.49 5.63 (3%) 5.92 (7%)
Crude Oil (MBbl) 1,992 1,636 22% 1,059 88%
NGL (MBbl) 220 138 59% 204 8%
Domestic Production:
Oil & Natural Gas Equivalent (Bcfe) 15.22 13.10 16% 9.11 67%
Natural Gas (Bcf) 3.32 3.36 (1%) 2.85 17%
Crude Oil (MBbl) 1,825 1,554 17% 925 97%
NGL (MBbl) 159 70 125% 119 33%
New Zealand Production:
Oil & Natural Gas Equivalent (Bcfe) 3.54 3.17 12% 4.38 (19%)
Natural Gas (Bcf) 2.17 2.27 (5%) 3.07 (30%)
Crude Oil (MBbl) 168 82 105% 134 25%
NGL (MBbl) 61 68 (10%) 84 (28%)
Total Company Average Prices:
Combined Oil & Natural Gas ($/Mcfe) $ 9.24 $ 8.91 4% $ 7.48 24%
Natural Gas ($/Mcf) $ 4.87 $ 4.79 2% $ 5.29 (8%)
Crude Oil ($/Bbl) $ 69.62 $ 69.63 -- $ 59.66 17%
NGL ($/Bbl) $ 36.18 $ 29.72 22% $ 31.84 14%
Domestic Average Prices:
Combined Oil & Natural Gas ($/Mcfe) $ 10.10 $ 10.02 1% $ 8.96 13%
Natural Gas ($/Mcf) $ 6.07 $ 6.12 (1%) $ 7.68 (21%)
Crude Oil ($/Bbl) $ 69.54 $ 69.40 -- $ 59.44 17%
NGL ($/Bbl) $ 42.37 $ 40.85 4% $ 40.58 4%
New Zealand Average Prices:
Combined Oil & Natural Gas ($/Mcfe) $ 5.54 $ 4.32 28% $ 4.41 26%
Natural Gas ($/Mcf) $ 3.04 $ 2.83 7% $ 3.08 (1%)
Crude Oil ($/Bbl) $ 70.49 $ 73.90 (5%) $ 61.23 15%
NGL ($/Bbl) $ 20.09 $ 18.14 11% $ 19.50 3%
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SWIFT/12
SWIFT ENERGY COMPANY
FOURTH QUARTER AND FULL YEAR 2006
GUIDANCE ESTIMATES
Actual Guidance Guidance
For Third For Fourth For Full
Quarter 2006 Quarter 2006 Year 2006
Production Volumes (Bcfe) 18.8 18.5 - 19.3 70.0 - 71.0
Domestic Volumes (Bcfe) 15.2 15.8 - 16.3 56.7 - 57.4
New Zealand Volumes (Bcfe) 3.5 2.75 - 3.00 13.3 - 13.6
Production Mix:
Domestic
Natural Gas (Bcf) 3.3 3.75 - 4.00 13.7 - 14.0
Crude Oil (MBbl) 1,825 1,840 - 1,870 6,705 - 6,735
Natural Gas Liquids (MBbl) 159 170 - 180 489 - 499
New Zealand
Natural Gas (Bcf) 2.2 1.75 - 1.85 8.9 - 9.0
Crude Oil (MBbl) 168 114 - 125 487 - 498
Natural Gas Liquids (MBbl) 61 52 - 65 242 - 255
Product Pricing (Note 1):
Domestic Pricing:
Natural Gas (per Mcf)
NYMEX differential (Note 2) ($0.51) ($0.75) - ($1.25) ($1.25) - ($2.00)
Crude Oil (per Bbl)
NYMEX differential (Note 3) ($1.06) ($2.75) - ($3.75) ($3.00) - ($4.00)
NGL (per Bbl)
Percent of NYMEX Crude 60% 45% - 55% 50% - 60%
New Zealand Pricing:
Natural Gas (per Mcf) (Note 4) $3.04 $2.75 - $3.00 $2.75 - $3.00
Crude Oil (per Bbl)
NYMEX differential (Note 3 & 5) ($0.11) ($2.50) - $0.00 ($2.50) - $0.00
NGL (per Bbl)
Contract Price (Note 6) $20.09 $17.00 - $19.00 $17.00 - $19.00
Oil & Gas Production Costs:
Domestic
Lease Operating Costs (per Mcfe) $0.63 $0.90 - $1.00 $0.90 - $0.95
Severance & Ad Valorem Taxes
(as % of Revenue dollars) 11.2% 11.5% - 12.5% 10.5% - 12.0%
New Zealand
Lease Operating Costs (per Mcfe) $0.93 $1.00 - $1.05 $0.91 - $0.96
Government Royalty
(as % of Revenue dollars) 6.3% 8.0% - 9.0% 7.0% - 9.0%
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SWIFT/13
SWIFT ENERGY COMPANY
FOURTH QUARTER AND FULL YEAR 2006
GUIDANCE ESTIMATES
(In Thousands Except Per Production Unit Amounts)
Actual Guidance Guidance
For Third For Fourth For Full
Quarter 2006 Quarter 2006 Year 2006
Other Costs:
G&A per Mcfe (Note 7) $0.43 $0.45 - $0.50 $0.45 - $0.50
Interest Expense per Mcfe $0.31 $0.37 - $0.41 $0.34 - $0.38
DD&A per Mcfe $2.45 $2.60 - $2.70 $2.45 - $2.50
Supplemental Information:
Capital Expenditures
Operations $ 79,631 $ 99,500 - $124,400 $390,500 - $415,000
Acquisition/(Dispositions), net $ 18,488 $174,000 - $179,000 $155,000 - $160,500
Capitalized G&G (Note 8) $ 7,102 $ 6,500 - $ 8,000 $ 23,000 - $ 25,500
Capitalized Interest $ 2,231 $ 2,000 - $ 2,400 $ 8,500 - $ 9,000
Total Capital Expenditures $107,452 $282,000 - $313,800 $577,000 - $610,000
Basic Weighted Average Shares 29,252 29,400 - 29,800 29,200 - 29,700
Diluted Computation:
Weighted Average Shares 30,184 30,300 - 30,80 0 30,100 - 30,700
Effective Tax Rate (Note 9) 38.2% 37.0% - 39.0% 37.0% - 38.0%
Deferred Tax Percentage 91% 70% - 85% 90% - 98%
<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: 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.
</FN>
This press release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The opinions, forecasts,
projections, guidance or other statements other than statements of historical
fact, are forward-looking statements. These statements are based upon
assumptions that are subject to change and to risks, especially the uncertainty
of finding, replacing, developing or acquiring reserves; adequate availability
of skilled personnel, services and supplies, inherent risks in oil and gas
operations, and volatility in oil or gas prices. Although the Company believes
that the expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove to have
been correct. Certain risks and uncertainties inherent in the Company's business
are set forth in the filings of the Company with the Securities and Exchange
Commission. Estimates of future financial or operating performance provided by
the Company are based on many factors, including existing market conditions and
engineering and geologic information available at this time. Actual financial
and operating performance may be higher or lower. Future performance is
dependent upon oil and gas prices, exploratory and development drilling results,
hurricanes and tropical storms, engineering and geologic information and changes
in market conditions.
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