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Swift Energy Reports Production Increase of 65% and First Quarter Net Income of $.08 Per Share
HOUSTON, May 4 /PRNewswire/ -- Swift Energy Company (NYSE: SFY - news)
reported today that net income for the first quarter ended March 31, 1999, was $1.3 million
or $.08 per share, fueled by a 65% increase in oil and gas production compared to a year
earlier. Although the composite price received for oil and gas sales decreased 19%
compared to that of last year's first quarter, oil and gas revenues increased 34% to $21.1
million. Net cash provided by operating activities increased 14% to $14.8 million or $.92
per share.
For the quarter, crude oil production more than tripled to 728,000 barrels, and natural gas
production rose 23% to 7.2 billion cubic feet. The year-to-year production gains were
primarily due to the acquisition of the Toledo Bend producing properties in Texas and
Louisiana, which the Company completed last August.
Prices received during the quarter averaged $10.87 per barrel for crude oil and $1.82 per
thousand cubic feet (Mcf) for natural gas, down 14% and 20%, respectively, from the same
quarter last year.
Commenting on the Company's first quarter results, A. Earl Swift, Chairman and Chief
Executive Officer, said, ''Swift Energy's resilience during one of the most difficult periods
for our industry is a testimonial to our planning and conservative business philosophy. The
precipitous decline in crude oil prices during the quarter and weak natural gas prices were
more than offset by the Company's strong increases in both oil and gas production. We
scaled back our capital expenditures and other cash outflows in response to this lower price
environment and decreased general administrative costs through cost- saving efforts,
including a reduction in staff. As the result of these actions, we were able to reduce our
bank debt by $4.4 million as cash flow from operating activities increased approximately
14%. We are pleased with our progress during the quarter.
''Looking ahead to the remainder of this year, we are encouraged by the recent
improvement in commodity prices and believe price recovery is founded on fundamental
supply and demand imbalances, especially with respect to natural gas. We plan to use
excess cash flow resulting from higher prices to further reduce the Company's bank debt.
By further increasing our financial flexibility, we will be well positioned for future expansion
as opportunities become available for additional producing property acquisitions and
increased drilling.''
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 an average compounded growth rate in proved oil and gas reserves
of approximately 37% per year during the last five years, with reserves additions in 1998
replacing the Company's production by 296%.
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 Amounts
Three Months
Ended March 31,
Percent
1999 1998 Change
Revenues:
Oil & Gas Sales $21,096 $15,802 34%
Other 392 673 (42)%
$21,488 $16,475 30%
Net Income $1,282 $3,230 (60)%
Per Share Amounts
Basic $0.08 $0.20 (60)%
Diluted $0.08 $0.20 (60)%
Net Cash Provided By
Operating Activities $14,837 $13,020 14%
Net Cash Provided By
Operating Activities,
Per Share $0.92 $0.79 16%
Weighted Average Shares
Outstanding 16,156 16,500 (2)%
EBITDA 15,958 12,955 23%
Production
Oil & Natural Gas Equivalent
(Mcfe) 11,591 7,029 65%
Natural Gas (Mcf) 7,224 5,859 23%
Oil & Condensate (Bbls) 728 195 273%
Average Prices
Combined Oil & Natural Gas
($/Mcfe) $1.82 $2.25 (19)%
Natural Gas ($/Mcf) $1.82 $2.28 (20)%
Oil & Condensate ($/Bbl) $10.87 $12.61 (14)%
SOURCE: Swift Energy Company |
