SWIFT ENERGY REPORTS:
- ---------------------
RECORD 2003 REVENUES OF $209 MILLION;
------------------------------------
RECORD 2003 PRODUCTION OF 53.2 Bcfe;
-----------------------------------
EARNINGS PER SHARE FOR 2003 OF $1.24; and
-------------------------------------
9.5% INCREASE IN PROVED RESERVES TO 820 Bcfe
--------------------------------------------
HOUSTON--(BUSINESS WIRE)--Feb. 11, 2004--Swift Energy Company
(NYSE:SFY) announced today that its net income for the fourth quarter
of 2003 increased 182% to $9.5 million, or $0.34 per diluted share,
compared to $3.4 million, or $0.12 per diluted share, in the fourth
quarter of 2002. Net income before accounting change (excluding the
effect of SFAS 143 implemented January 1, 2003) for the full year 2003
increased 187% to $34.3 million, or $1.24 per diluted share, compared
to $11.9 million, or $0.45 per diluted share, for the full year 2002.
Included in these results is a reduction in the consolidated income
tax expense of approximately $1.3 million ($0.05 per diluted share)
from the U.S. statutory rate, primarily the result of the currency
exchange rate effect on the deferred New Zealand tax, partially
offset by higher deferred state taxes and other items.
Production for 2003 increased to an annual record of 53.2 billion
cubic feet equivalent ("Bcfe"), an increase of 7% from 2002 production
of 49.8 Bcfe. Production for the fourth quarter of 2003 was 13.4 Bcfe,
which was a 6% increase from the 12.6 Bcfe produced in the fourth
quarter of 2002, and a 2% decrease from the 13.6 Bcfe produced in the
third quarter of 2003. The quarter-to-quarter decrease was primarily
due to reduced throughput at Lake Washington resulting from downtime
to install new infrastructure and from reduced nominations for natural
gas in New Zealand. Fourth quarter 2003 production included 8.8 Bcfe
of domestic production and 4.6 Bcfe produced in New Zealand.
Terry Swift, President and CEO, noted that "Swift Energy has just
completed one of its best yearly financial performances in the history
of the Company. While we celebrate the Company's 25th anniversary in
2004, we believe our operational performance will again be record
setting. In the Lake Washington Field, for instance, we produced more
than 12,000 gross barrels of oil equivalent per day (10,000 net
barrels of oil equivalent per day) in January 2004, which compares to
approximately 5,000 gross barrels of oil equivalent per day
(approximately 4,100 net barrels of oil equivalent per day) in January
2003. The diversification in our reserve and production base over the
past two years provides Swift Energy with a strong foundation for
additional growth into the coming years."
Revenues and Expenses
Total revenues for the fourth quarter of 2003 increased 31% to
$53.1 million from the $40.5 million of revenues received in the
fourth quarter of 2002. Total revenues for the full year 2003 were
$208.9 million, up 39% from $150.0 million in 2002. Swift Energy's
increased revenues for the fourth quarter and full year 2003 are
attributable to higher commodity prices and increased levels of
production.
Lease operating expenses, before severance and ad valorem taxes,
were $0.63 per thousand cubic feet equivalent ("Mcfe") in 2003, an
increase of 7% compared to $0.59 per Mcfe in 2002. The increase was
predominately due to some of the facility enhancement costs in Lake
Washington and also due to currency exchange rates in New Zealand.
General and administrative expenses increased to $0.27 per Mcfe during
2003 from $0.21 per Mcfe in 2002. This increase was mainly
attributable to front-end costs associated with increased activity
levels at Lake Washington and corporate governance expenses.
Depreciation, depletion and amortization expense was $1.19 per Mcfe in
2003 compared to $1.13 per Mcfe in 2002, and interest expense was
$0.51 per Mcfe compared to $0.47 per Mcfe for the same periods. Also,
severance and ad valorem taxes were up appreciably to $0.36 per Mcfe
from $0.24 per Mcfe due to higher commodity prices and the higher
severance tax rates on crude oil from our increased crude oil
production in Louisiana.
Reserves
Swift Energy again made significant strides in 2003 in improving
the quality and the quantity of its reserves. Year-end 2003 proved
reserves of 820 Bcfe were 47% crude oil, 41% natural gas and 12%
natural gas liquids ("NGLs"), compared to year-end 2002 proved
reserves of 749 Bcfe, which were 44% natural gas, 42% crude oil and
14% NGLs. Proved developed reserves remained essentially the same at
59% of total reserves at year-end 2003, compared to 60% in the
previous year. The majority of proved undeveloped reserves at year-end
2003 were located in the Lake Washington area (13% of total reserves)
and in the AWP Olmos area (9% of total reserves), both of which are
characterized as long reserve life fields.
Domestic proved reserves increased at year-end 2003 to 644 Bcfe,
driven mainly by the reserves increase in the Lake Washington Field,
which increased 37% to 261 Bcfe (43.5 million barrels of oil
equivalent) up from 190 Bcfe (31.7 million barrels of oil equivalent)
at year-end 2002. Domestic proved reserves at year-end were 49% crude
oil, 38% natural gas and 13% NGLs. Domestic proved reserves, making up
79% of total proved reserves at year-end 2003, are located in the Lake
Washington area (32% of total reserves), AWP Olmos area (26% of total
reserves), Masters Creek area (8% of total reserves), Brookeland area
(5% of total reserves) and other domestic properties (7% of total
reserves).
In New Zealand, 2003 year-end proved reserves increased 13% to 176
Bcfe, 64% of which are categorized as proved developed reserves. New
Zealand reserves constitute 21% of the Company's total proved reserves
with 15% of total reserves attributable to the Rimu/Kauri area and 6%
to the TAWN area. New Zealand proved reserves consist of 53% of
natural gas, 38% of crude oil and 9% of NGLs. The 2003 increase in
reserves was primarily attributable to drilling additions in the Kauri
and Manutahi Sands.
Production & Pricing
For 2003, total production increased 7% to 53.2 Bcfe from 49.8
Bcfe in 2002. Domestically, 2003 total production decreased by 1% to
33.8 Bcfe compared with 34.3 Bcfe from 2002 levels but quarterly
production increased throughout 2003 as the Company continued to focus
its efforts and capital towards the development of longer life oil
reserves in the Lake Washington area. During 2003, the Company also
began allocating capital to natural gas development in its three other
domestic core areas. New Zealand accounted for 36% of corporate
production with 19.4 Bcfe produced in 2003, an increase of 25% from
the 15.5 Bcfe produced there in 2002.
Total fourth quarter 2003 production of 13.4 Bcfe increased 6%
from the 12.6 Bcfe produced in the same quarter of 2002 and decreased
2% from third quarter 2003 production. Fourth quarter 2003 domestic
production of 8.8 Bcfe increased 16% from the 7.6 Bcfe produced in the
same quarter in 2002. Fourth quarter 2003 New Zealand production of
4.6 Bcfe decreased 8% from 5.0 Bcfe produced in the same quarter in
2002, due to lower nominations of natural gas in the TAWN area because
of reduced demand.
In 2003, Swift Energy realized substantially higher average
domestic natural gas prices of $5.07 per thousand cubic feet ("Mcf"),
an increase of 69% from the $3.01 per Mcf domestic average in 2002.
Meanwhile, average domestic crude oil prices increased 22% to $29.95
per barrel from $24.57 per barrel realized in 2002. Prices for NGLs
domestically averaged $19.75 per barrel in 2003, a 50% increase over
the 2002 NGL prices.
In New Zealand, Swift Energy received an average natural gas price
of $1.83 per Mcf for 2003 under its long-term contracts, a 38%
increase over the $1.32 per Mcf received in 2002. Also in New Zealand,
the Company's McKee blend crude oil averaged $29.58 per barrel and the
Company's NGL contracts yielded an average price of $13.50 per barrel
for the year 2003. New Zealand natural gas and the NGL price contracts
are denominated in New Zealand dollars, which has significantly
strengthened during 2003 against the U.S. dollar. The currency
exchange rate increased to approximately $0.66 U.S. dollars per $1.00
New Zealand dollar at the end of 2003 compared to approximately
US$0.52 to NZ$1.00 at the end of 2002 (a 25% increase).
In the fourth quarter of 2003, Swift Energy realized an aggregate
global average price of $3.97 per Mcfe, an increase of 26% from fourth
quarter 2002 price levels, when the price averaged $3.15 per Mcfe.
Domestically, the Company realized an aggregate average price of $4.59
per Mcfe, an increase of 17% over the $3.93 received in the fourth
quarter of 2002. In New Zealand, the Company received an aggregate
average price of $2.78 per Mcfe for the fourth quarter in 2003, an
increase of 41% over the $1.97 per Mcfe realized in 2002.
Domestic Operations
Swift Energy completed 13 of 16 wells domestically in the fourth
quarter of 2003. Of these 16 wells, 15 were development wells and one
was an exploration well. In Lake Washington, the Company completed
eight of 10 development wells, but was unsuccessful with an
exploration well. In other operated areas, Swift Energy completed a
development well in the Austin Chalk in the Brookeland area and
completed four wells in the AWP Olmos area. For the full year 2003,
the Company completed 53 out of 63 domestic development wells and five
of eight exploration wells. Currently, the Company has one rig
operating in Lake Washington and one rig in the AWP Olmos area as well
as the Masters Creek area.
New Zealand Operations
Swift Energy completed three of four wells in New Zealand during
2003. Two of these wells successfully targeted the Kauri Sand, the
third was completed in the Manutahi Sand, and the fourth well was an
unsuccessful exploration test. The Company also fracture stimulated
three Kauri Sand wells in 2003. The Company recently drilled the
Kauri-E3 well, which is waiting on a fracture stimulation, and also is
in the process of drilling the Kauri-E4 well.
Price Risk Management
Swift Energy also announced that since its last update on January
26, it has continued to enter into price risk management transactions.
The Company recently purchased additional natural gas floors that
cover 200,000 million British thermal units ("MMBtu") per month for
the second quarter of 2004, all at a strike price of $5.00 per MMBtu.
Guidance
Due to the January 2004 production levels recorded in the Lake
Washington area and expected production levels for the first quarter
2004, Swift Energy is increasing its domestic production guidance
range for the first quarter 2004 to 10.0 to 10.5 Bcfe from the 9.7 to
10.2 range disclosed at its Analyst/Investor meetings in January 2004.
Total production for the first quarter of 2004 is expected to be 13.5
Bcfe to 14.5 Bcfe. Except for changes in the domestic product mixes,
all other guidance estimates remain the same.
Earnings Release
Swift Energy will conduct a conference call to discuss fourth
quarter and full year 2003 financial results on Wednesday, February 11
with a live webcast, at 9:00 a.m. CST. 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 11 through February 17, by dialing
973-341-3080 and using pin #4430167. Additionally, the conference call
will be available over the Internet by accessing the Company's website
at www.swiftenergy.com and clicking on the event hyperlink. This
webcast will be available online at the Company's website through
February 26, 2004.
Celebrating its 25th Anniversary this year, Swift Energy Company
was founded in 1979 with its headquarters in Houston, Texas. Swift
Energy engages in developing, exploring, acquiring and operating oil
and gas properties, with a focus on onshore and inland waters oil and
natural gas reserves in Texas and Louisiana and onshore oil and
natural gas reserves in New Zealand. The Company has consistently
shown long-term growth in its proved oil and gas reserves, production
and cash flow through a disciplined program of acquisitions and
drilling, while maintaining a strong financial position.
This material includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. The
opinions, forecasts, projections, guidance or other statements other
than statements of historical fact, are forward-looking statements.
These statements are based upon assumptions that are subject to change
and to risks, especially volatility in oil or gas prices, and lately
availability of services and supplies. Although the Company believes
that the expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove
to have been correct. Certain risks and uncertainties inherent in the
Company's business are set forth in the filings of the Company with
the Securities and Exchange Commission. Estimates of future financial
or operating performance provided by the Company are based on existing
market conditions and engineering and geologic information available
at this time. Actual financial and operating performance may be higher
or lower. Future performance is dependent upon oil and gas prices,
exploratory and development drilling results, engineering and geologic
information and changes in market conditions.
SWIFT ENERGY COMPANY
SUMMARY FINANCIAL INFORMATION
(UNAUDITED)
In Thousands Except Per Share and Price Amounts
Three Months Ended Years Ended
December 31, December 31,
------------------------- ---------------------------
Percent Percent
2003 2002 Change 2003 2002 Change
-------- -------- ------- --------- --------- -------
Revenues
Oil & Gas Sales $53,186 $39,659 34% $211,033 $141,196 49%
Other (55) 815 NM (2,132) 8,774 NM
-------- -------- --------- ---------
Total Revenue $53,131 $40,475 31% $208,901 $149,970 39%
Net Income
Before
Accounting
Change(1) $9,502 $3,372 182% $34,271 $11,923 187%
Basic EPS,
Before Accounting
Change $0.35 $0.12 192% $1.25 $0.45 178%
Diluted EPS,
Before Accounting
Change $0.34 $0.12 183% $1.24 $0.45 176%
SFAS 143
Accounting
Change --- --- --- $(4,377) --- NM
Per Share --- --- --- $(0.16) --- NM
Net Income $9,502 $3,372 182% $29,894 $11,923 151%
Basic EPS $0.35 $0.12 192% $1.09 $0.45 142%
Diluted EPS $0.34 $0.12 183% $1.08 $0.45 140%
Net Cash
Provided By
Operating
Activities $26,805 $15,932 68% $110,827 $71,626 55%
Net Cash
Provided By
Operating
Activities,
Per Diluted
Share $0.96 $0.59 64% $4.02 $2.68 50%
Cash Flow
Before Working
Capital
Changes(2)
(non-GAAP
measure) $29,384 $19,277 52% $115,441 $67,568 71%
Cash Flow
Before Working
Capital Changes,
Per Diluted
Share $1.06 $0.71 49% $4.19 $2.53 66%
Weighted Average
Shares Outstanding
(WASO) 27,452 27,194 1% 27,358 26,383 4%
EBITDA (2)(non-
GAAP measure) $36,125 $26,384 37% $141,937 $97,908 45%
Production
(Bcfe): 13.4 12.6 6% 53.2 49.8 7%
Domestic 8.8 7.6 16% 33.8 34.3 (1%)
New Zealand 4.6 5.0 (8%) 19.4 15.5 25%
Realized Price
($/Mcfe): $3.97 $3.15 26% $3.97 $2.84 40%
Domestic $4.59 $3.93 17% $4.86 $3.27 49%
New Zealand $2.78 $1.97 41% $2.42 $1.88 29%
(1) SFAS 143 - Statement of Financial Accounting Standards No. 143
(SFAS No. 143), "Accounting for Asset Retirement Obligations,"
which requires companies to record the present value of
estimated future abandonment obligations as a liability, with
a corresponding entry to oil and gas assets.
(2) See reconciliation on page 9. Management believes that the
non-GAAP measures EBITDA and cash flow before working capital
changes are useful information to investors because they are
widely used by professional research analysts in the
valuation, comparison, rating and investment recommendations
of companies within the oil and gas exploration and production
industry. Many investors use the published research of these
analysts in making their investment decisions. EBITDA and cash
flow before working capital changes are widely accepted as
financial indicators of an oil and gas company's ability to
generate cash which is used to internally fund exploration and
development activities and to service debt. EBITDA and cash
flow before working capital changes are not measures of
financial performance under GAAP and should not be considered
as an alternative to cash flows from operating, investing, or
financing activities, as an indicator of cash flows, or as a
measure of liquidity.
SWIFT ENERGY COMPANY
SUMMARY BALANCE SHEET INFORMATION
In Thousands
As of As of
December December
31, 2003 31, 2002
----------- ----------
(Unaudited)
-----------
Assets:
Current Assets:
Cash and Cash Equivalents $1,066 $3,816
Other Current Assets 33,608 25,952
----------- ----------
Total Current Assets 34,674 29,768
Oil and Gas Properties 1,373,321 1,220,237
Other Fixed Assets 10,602 9,596
Less-Accumulated DD&A (567,464) (504,324)
----------- ----------
816,460 725,509
Other Assets 9,921 11,729
----------- ----------
$861,055 $767,006
=========== ==========
Liabilities:
Current Liabilities $69,773 $46,884
Long-Term Debt 340,255 324,272
Deferred Income Taxes 43,499 30,777
Asset Retirement Obligation 10,137 ---
Stockholders' Equity 397,391 365,073
----------- ----------
$861,055 $767,006
=========== ==========
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, Per Dec. 31, Per
2003 Mcfe 2003 Mcfe
-------- ------- --------- -------
Revenues:
Oil & Gas Sales $53,186 $ 3.97 $211,033 $ 3.97
Other Revenue (55) (0.00) (2,132) (0.04)
------- ------ -------- ------
53,131 3.97 208,901 3.93
------- ------ -------- ------
Costs and Expenses:
General and administrative, net 3,532 0.26 14,097 0.27
Depreciation, Depletion &
Amortization 16,441 1.23 63,072 1.19
Accretion of asset retirement
obligation (ARO) 234 0.02 857 0.02
Oil & Gas Production Costs 8,684 0.65 33,833 0.64
Severance & Ad Valorem
Taxes/Royalty 4,790 0.36 19,034 0.35
Interest Expense, Net 7,161 0.54 27,269 0.51
------- ------ -------- ------
Total Costs & Expenses 40,843 3.05 158,162 2.98
------- ------ -------- ------
Income before Income Taxes & Change
in Accounting Principle 12,288 0.92 50,739 0.95
Provision for Income Taxes 2,787 0.21 16,469 0.31
------- ------ -------- ------
Income Before Changes in
Accounting Principle $ 9,502 $ 0.71 $ 34,271 $ 0.64
Cumulative Effect of Change in
Accounting Principle (SFAS 143) --- --- 4,377 0.08
------- ------ -------- ------
Net Income $ 9,502 $ 0.71 $ 29,894 $ 0.56
======= ====== ======== ======
Additional Information:
Capital Expenditures $42,992 $144,503
Capitalized General & Geological $ 2,359 $ 9,569
Capitalized Interest Expense $ 1,679 $ 6,836
Deferred Income Tax $ 2,956 $ 16,332
Note: Items may not total due to rounding
SWIFT ENERGY COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOW
(UNAUDITED)
In Thousands
Years Ended
December December
31, 2003 31, 2002
--------- ---------
Cash Flows From Operating Activities:
Net Income $29,894 $11,923
Adjustments to reconcile net income to net cash
provided by operating activities -
Cumulative effect of changes in accounting
principle 4,377 ---
Depreciation, depletion, and amortization 63,072 56,224
Accretion of asset retirement obligation (ARO) 857 ---
Deferred income taxes 16,332 6,483
Gain on asset disposition --- (7,333)
Other 909 271
Change in assets and liabilities -
(Increase) decrease in accounts receivable,
excluding income taxes (7,163) 283
Increase in accounts payable and accrued
liabilities 2,543 3,174
Decrease in income taxes 6 600
--------- ---------
Net Cash Provided by Operating Activities 110,827 71,626
--------- ---------
Cash Flows From Investing Activities:
Additions to property and equipment (144,503) (155,234)
Proceeds from the sale of property and equipment 10,187 13,257
Net cash received as operator of oil & gas
properties 3,074 4,153
Net cash received (distributed) as operator of
partnerships and joint ventures 261 (23,242)
Other (71) (40)
--------- ---------
Net Cash Used in Investing Activities (131,053) (161,106)
--------- ---------
Cash Flows From Financing Activities:
Proceeds from long-term debt --- 200,000
Net proceeds from (payments of) bank borrowings 15,900 (134,000)
Net proceeds from issuance of common stock 1,576 31,409
Payments of debt issuance costs --- (6,262)
--------- ---------
Net Cash Provided by Financing Activities 17,476 91,147
--------- ---------
Net Increase (Decrease) in Cash and Cash
Equivalents (2,750) 1,667
Cash and Cash Equivalents at the Beginning of the
Period 3,816 2,149
--------- ---------
Cash and Cash Equivalents at the End of the Period $1,066 $3,816
========= =========
Note: Items may not total due to rounding
SWIFT ENERGY COMPANY
Reconciliation of GAAP to non-GAAP Measures (a)
(UNAUDITED)
In Thousands
Below is a reconciliation of (1) EBITDA to (2) Net Income and Cash
Flow Before Working Capital Changes to Net Cash Provided by Operating
Activities.
Three Months
Ended
-----------------
Dec. 31, Dec. 31,
2003 2002
NET INCOME TO EBITDA RECONCILIATIONS:
Net Income $9,502 $3,372 182%
Provision for Income taxes 2,787 1,910
Cumulative Effect of Accounting Change --- ---
Interest Expense, Net 7,161 6,667
Depreciation, Depletion & Amortization & ARO 16,675 14,435
-------- --------
EBITDA $36,125 $26,384 37%
======== ========
Years Ended
------------------
Dec. 31, Dec. 31,
2003 2002
Net Income $29,894 $11,923 151%
Provision for Income taxes 16,469 6,485
Cumulative Effect of Accounting Change 4,377 ---
Interest Expense, Net 27,269 23,275
Depreciation, Depletion & Amortization & ARO 63,929 56,224
--------- --------
EBITDA $141,937 $97,908 45%
========= ========
Three Months
Ended,
Dec. 31, Dec. 31,
2003 2002
NET CASH FLOW RECONCILIATIONS:
Net Cash Provided by Operating Activities $26,805 $15,932 68%
Increases and Decreases In:
Accounts Receivable, net of taxes 3,268 980
Accounts Payable and Accrued Liabilities (683) 2,365
Income Taxes (6) ---
-------- --------
Cash Flow Before Working Capital Changes $29,384 $19,277 52%
======== ========
Years Ended
------------------
Dec. 31, Dec. 31,
2003 2002
Net Cash Provided by Operating Activities $110,827 $71,626 55%
Increases and Decreases In:
Accounts Receivable, net of taxes 7,163 (283)
Accounts Payable and Accrued Liabilities (2,543) (3,175)
Income Taxes (6) (600)
--------- --------
Cash Flow Before Working Capital Changes $115,441 $67,568 71%
========= ========
(a) GAAP--Generally Accepted Accounting Principles
Note: Items may not total due to rounding
SWIFT ENERGY COMPANY
OPERATIONAL INFORMATION
QUARTERLY COMPARISON -- SEQUENTIAL & YEAR-OVER-YEAR
(UNAUDITED)
Three Months Three Months
Ended Ended
----------------- ----------------
Percent Percent
Dec.31, Sept.30, Change Dec.31, Change
2003 2003 2002
------- -------- ------- ------- -------
Total Company Production:
Oil & Natural Gas
Equivalent (Bcfe) 13.38 13.64 (2%) 12.58 6%
Natural Gas (Bcf) 6.59 6.65 (1%) 7.08 (7%)
Crude Oil (MBbl) 941 917 3% 647 45%
NGLs (MBbl) 191 247 (23%) 269 (29%)
Domestic Production:
Oil & Natural Gas
Equivalent (Bcfe) 8.81 8.76 1% 7.60 16%
Natural Gas (Bcf) 3.37 3.14 7% 3.36 0%
Crude Oil (MBbl) 787 756 4% 505 56%
NGLs (MBbl) 121 179 (33%) 202 (40%)
New Zealand Production:
Oil & Natural Gas
Equivalent (Bcfe) 4.57 4.88 (6%) 4.98 (8%)
Natural Gas (Bcf) 3.22 3.51 (8%) 3.73 (14%)
Crude Oil (MBbl) 154 160 (4%) 142 9%
NGLs (MBbl) 70 68 4% 67 5%
Total Company Average Prices:
Combined Oil & Natural
Gas ($/Mcfe) $3.97 $3.82 4% $3.15 26%
Natural Gas ($/Mcf) $3.29 $3.17 4% $2.55 29%
Crude Oil ($/Bbl) $30.10 $29.24 3% $27.00 11%
NGLs ($/Bbl) $16.71 $16.81 (1%) $15.25 10%
Domestic Average Prices:
Combined Oil & Natural
Gas ($/Mcfe) $4.59 $4.56 1% $3.93 17%
Natural Gas ($/Mcf) $4.37 $4.63 (6%) $3.84 14%
Crude Oil ($/Bbl) $29.91 $29.33 2% $27.06 11%
NGLs ($/Bbl) $18.28 $17.96 2% $16.42 11%
New Zealand Average Prices:
Combined Oil & Natural
Gas ($/Mcfe) $2.78 $2.48 12% $1.97 41%
Natural Gas ($/Mcf) $2.15 $1.87 15% $1.40 54%
Crude Oil ($/Bbl) $31.09 $28.83 8% $26.79 16%
NGLs ($/Bbl) $14.02 $13.76 2% $11.71 20%
SWIFT ENERGY COMPANY
FIRST QUARTER AND FULL YEAR 2004
GUIDANCE ESTIMATES
Actual Guidance Guidance
For Fourth For First For Full
Description Quarter 2003 Quarter 2004 Year 2004
Production Volumes (Bcfe) 13.4 13.5 - 14.5 59.0 - 62.0
Domestic Volumes (Bcfe) 8.8 10.0 - 10.5 40.0 - 44.0
New Zealand Volumes
(Bcfe) 4.6 3.5 - 4.0 17.0 - 20.0
Production Mix:
Domestic
Natural Gas (Bcfe) 3.4 2.95 - 3.10 12.0 - 13.0
Crude Oil (MBbl) 787 1,085 - 1,140 4,250 - 4,740
Natural Gas Liquids
(MBbl) 121 90 - 94 420 - 440
New Zealand
Natural Gas (Bcfe) 3.2 2.7 - 3.0 12.5 - 15.0
Crude Oil (MBbl) 154 98 - 108 550 - 610
Natural Gas Liquids
(MBbl) 70 35 - 60 200 - 225
Product Pricing (Note 1):
Domestic Pricing:
Natural Gas (per Mcf)
NYMEX differential
(Note 2) ($0.21) -$0.25 to -$0.35 -$0.25 to -$0.35
Crude Oil (per Bbl)
NYMEX differential
(Note 3) ($1.25) -$1.00 to -$2.00 -$1.00 to -$2.00
NGLs (per Bbl)
Percent of NYMEX Crude 61% 45% - 55% 45% - 55%
New Zealand Pricing:
Natural Gas (per Mcf)
(Note 4) $2.15 $2.15 to $2.35 $2.20 to $2.40
Crude Oil (per Bbl)
NYMEX differential
(Note 3 & 5) ($0.07) -$1.50 to -$3.00 -$1.50 to -$3.00
NGLs (per Bbl)
Contract Price
(Note 6) $14.02 $12.00 to $14.00 $12.00 to $14.00
Oil & Gas Production
Costs:
Domestic
Lease Operating Costs
(per Mcfe) $0.67 $0.72 - $0.77 $0.63 - $0.73
Severance & Ad Valorem
Taxes (as % of Revenue
dollars) 9.6% 10.0% - 11.0% 10.0% - 11.0%
New Zealand
Lease Operating Costs
(per Mcfe) $0.61 $0.60 - $0.65 $0.58 - $0.68
Government Royalty
(as % of Revenue
dollars) 7.1% 8.5% - 9.5% 8.5% - 9.5%
SWIFT ENERGY COMPANY
FIRST QUARTER AND FULL YEAR
2004 GUIDANCE ESTIMATES
(In Thousands Except Per Production Unit Amounts)
Actual Guidance Guidance
For Fourth For First For Full
Quarter 2003 Quarter 2004 Year 2004
Description
- ------------
Other Costs:
G&A per Mcfe $0.26 $0.25 - $0.29 $0.24 - $0.28
Interest Expense
per Mcfe $0.54 $0.50 - $0.54 $0.47 - $0.52
DD&A per Mcfe $1.23 $1.26 - $1.31 $1.27 - $1.32
Supplemental
Information:
Capital
Expenditures
Operations 38,954 $35,000 - $40,000 $117,400 - $144,600
Acquisition/
Dispositions,
net (6,347) ($0,000) - ($1,000) ($3,000) - ($13,000)
Capitalized G&G
(Note 7) 2,359 $2,300 - $2,800 $9,200 - $11,200
Capitalized
Interest 1,679 $1,600 - $1,800 $6,400 - $7,200
Total Capital
Expenditures $38,900 - $43,600 $130,000 - $150,000
Basic Weighted
Average Shares 27,452 27,500 - 27,900 27,400 - 28,200
Diluted
Computation:
Weighted Average
Shares 27,848 27,700 - 28,500 27,700 - 28,700
Effective Tax
Rate (Note 8) 22.7% 35.5% - 36.5% 35.5% - 36.5%
Deferred Tax
Percentage 94% 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: Capitalized acquisition costs incorporated in acquisitions
when occurred. Note 8: Effective Tax rate guidance does not
include any New Zealand currency exchange fluctuations.
This material includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. The
opinions, forecasts, projections, guidance or other statements other
than statements of historical fact, are forward-looking statements.
These statements are based upon assumptions that are subject to change
and to risks, especially volatility in oil or gas prices, and
availability of services and supplies. Although the Company believes
that the expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove
to have been correct. Certain risks and uncertainties inherent in the
Company's business are set forth in the filings of the Company with
the Securities and Exchange Commission. Estimates of future financial
or operating performance provided by the Company are based on existing
market conditions and engineering and geologic information available
at this time. Actual financial and operating performance may be higher
or lower. Future performance is dependent upon oil and gas prices,
exploratory and development drilling results, engineering and geologic
information and changes in market conditions.
CONTACT: Swift Energy Company, Houston
Scott A. Espenshade, 281-874-2700 or 800-777-2412
www.swiftenergy.com