Swift Energy Reports Record Production for 1998 Fourth Quarter and Full Year
HOUSTON, Feb. 11 /PRNewswire/ -- Swift Energy Company (NYSE: SFY; PCX)
today announced financial and operating results for the fourth quarter and
full year of 1998. Equivalent crude oil and natural gas production surged
82% for the fourth quarter and 54% for the full year when compared to the same
periods of 1997. These increases were driven primarily by the Company's major
producing property purchases in Texas and Louisiana completed in the third
quarter of 1998. The Company's year-end crude oil and natural gas reserves
also grew to a record level of 436 billion cubic feet of natural gas
equivalent, 21% higher than at year-end 1997. The increase in reserves comes
from both property acquisitions and successful exploratory and development
drilling during the year.
Fourth Quarter Results
For the fourth quarter of 1998, Swift Energy produced 12.5 billion cubic
feet of natural gas equivalent, generating operating cash flow of
$16.2 million (up 33% over the fourth quarter of 1997) and earnings of $3.1
million, or $.19 per share, on revenues of $25.1 million. Significantly
offsetting the production increase for the period were price declines in both
natural gas (down 33%) and crude oil (down 30%). Operating cash flow and
earnings for the comparable quarter last year were $12.2 million and $6.7
million ($.37 per share), respectively.
Full Year Results
For 1998, the Company produced 39.0 billion cubic feet of natural gas
equivalent, which generated operating cash flow of $54.2 million and earnings
from continuing operations of $11.7 million ($.71 per share) on revenues of
$82.5 million. This compares to operating cash flow of $55.3 million and
earnings of $22.3 million ($1.26 per share) on revenues of $74.7 million for
all of 1997. Again, precipitous declines in both crude oil and natural gas
prices realized during the year were responsible for the unfavorable
comparisons with the previous year. Oil prices received averaged $11.86 per
barrel and gas prices averaged $2.08 per thousand cubic feet for 1998, down
33% and 22%, respectively, from 1997. Due to a non-cash charge to third
quarter earnings necessitated by the very low oil and gas prices, the Company
reported a net loss of $48.2 million ($2.93 per share) for 1998. The third
quarter charge was largely the result of a ceiling test write-down, which
became necessary solely because of a downward fluctuation in product prices
and accounting rules that required end-of-period pricing to be applied to
long-term production projections.
Year-end Reserves at Record Level
At year-end 1998, Swift Energy's proved crude oil and natural gas reserves
were estimated by independent engineers to be 14.0 million barrels of oil and
352.4 billion cubic feet of gas for an equivalent volume of 436 billion cubic
feet of gas. The 1998 reserve replacements, which came from acquisitions as
well as extensions and discoveries related to drilling activity, were
approximately three times the Company's record 1998 production. During the
past five years, the Company's proved oil and gas reserves have grown at an
average compounded annual rate of 37%.
Commenting on the results, Mr. A. Earl Swift, the Company's Chairman and
Chief Executive Officer, said, "Despite the decline in gas prices and the
persistence of the lowest crude oil prices in over a decade, we had
significant accomplishments in building our Company during 1998. Cash flow,
production and reserves all showed strong growth. At the same time, the
Company has accumulated a large inventory of developmental and exploratory
acreage for future growth. Our Company has continued to implement its
strategic plan of building shareholder value by achieving sustained growth in
these areas. We are confident we are on the right track and remain highly
confident in our ability to continue to prosper."
Swift Energy Company is an independent oil and gas company engaged in the
exploration, development, acquisition and operation of oil and gas properties,
with a focus on U.S. onshore natural gas reserves. Founded in 1979 with
headquarters in Houston, Texas, the Company has achieved outstanding growth
rates in proved oil and gas reserves, production, and cash flow over the last
five years through a disciplined program of low to medium risk acquisition 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 or other statements, other than statements of historical fact, are
forward-looking statements. 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.
SWIFT ENERGY COMPANY
SUMMARY FINANCIAL INFORMATION
In Thousands Except Per Share and Price Amounts
Three Months Year Ended
Ended December 31, December 31,
Percent Percent
1998 1997 Change 1998 1997 Change
Revenues
Oil & Gas Sales $24,726 $20,162 23% $80,068 $69,015 16%
Other 370 1,004 (63)% 2,401 5,697 (58)%
25,096 $21,166 19% $82,469 $74,712 10%
Net Income Before
Non-Cash Charge $3,080 $6,742 (54)% $11,685 $22,310 (48)%
Net Income (Loss) $3,080 $6,742 (54)%$(48,225) $22,310 (316)%
Per Share Amounts
Basic $0.19 $0.41 (54)% $(2.93) $1.35 (317)%
Diluted $0.19 $0.37 (49)% $(2.93) $1.26 (333)%
Net Cash Provided By
Operating
Activities $16,176 $12,176 33% $54,249 $55,256 (2)%
Net Cash Provided By
Operating
Activities, Per
Share $0.99 $0.74 34% $3.30 $3.35 (1)%
Weighted Average
Shares Outstanding 16,304 16,448 (1)% 16,437 16,493 ---%
EBITDA 19,962 17,966 11% 65,476 62,410 5%
Production
Oil & Natural
Gas Equivalent
(Mcfe) 12,451 6,846 82% 39,030 25,394 54%
Natural Gas (Mcf) 8,131 5,753 41% 28,226 21,359 32%
Oil & Condensate
(Bbls) 720 182 295% 1,801 672 168%
Average Prices
Received Combined
Oil & Natural Gas
($/Mcfe) $1.99 $2.95 (33)% $2.05 $2.72 (25)%
Natural Gas ($/Mcf) $2.00 $2.98 (33)% $2.08 $2.68 (22)%
Oil & Condensate
($/Bbl) $11.74 $16.69 (30)% $11.86 $17.59 (33)%
SOURCE Swift Energy Company
CO: Swift Energy Company
ST: Texas
IN: OIL
SU: ERN
02/11/99 08:05 EST prnewswire.com
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