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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Bucky Katt who wrote (27574)	8/12/1998 11:53:00 AM
From: The Ox	Read Replies (1) \| Respond to of 95453

While I don't expect a quick pop in this stock, I think if you feel compelled to nibble in this sector, one should take a good look at SFY. This is an old news release, but I think it shows the merit of owning a this company: Swift Energy Stock Repurchase Program HOUSTON, July 24 /PRNewswire/ -- Swift Energy Company (NYSE: SFY; PCX) reported today that its Board of Directors has authorized open market purchases of up to $10 million of the common stock of the Company. If $10 million of stock is repurchased at the closing price on July 23, 1998, the repurchase would equate to approximately five percent of the current shares outstanding. Purchases may be made at times and prices deemed appropriate by the Company considering its stock price, the price of oil and gas as commodities, and other factors. Earl Swift, Chairman and CEO of Swift Energy Company, stated, "Since calendar year 1992, the Company has increased net cash provided by operations from $0.94/share to $3.35/share during 1997. This represents a compounded increase per year of approximately 30 percent for the five-year period 1992 -- 1997. We expect to exceed this rate of growth of net cash provided by operations in 1998. During this same period, earnings per share have increased from $0.61 per share to $1.35 per share. This represents a 17 percent compounded annual rate of growth. "Although the Company recently completed a stock repurchase program on June 30, 1998, the recent significant downturn in the price of Swift Energy Company common stock in an environment of improving performance as measured by earnings per share and cash flow persuaded the Board of Directors that we should undertake a new stock purchase program. The decision was based in part on the view of the Company that the current market value of its stock is below the true value of its net assets, making the assets represented by the shares a good acquisition. "We have reacted to lower oil and gas prices by delaying drilling of most high cost wells and temporarily concentrating on growth through acquisitions of economic merit. The recently announced purchase of reserves and production facilities from Sonat, Inc. (NYSE: SNT), at what we believe is an excellent rate of return even with the current weakness in commodity prices, would not have been possible a few months ago. This strategy places us in an excellent position to sustain our 20-year history of growth, not only for this year but for many years in the future. "Certain investors and the general public at large have questioned our reported oil and gas reserve numbers. We believe these questions have more to do with trying to relate other company's experience to our circumstances. We have recently made a complete review of all our reserves and the reserves applicable to our Sonat purchase. After exhaustive review, we are confident that our reserves are and have been correctly represented. During the audit of reserves by independent engineers, complete data was available to them with maps, historical production, and other pertinent data. The independent engineer has reviewed each property and determined the estimated reserves for each property. In every case if the reserves determined by the independent engineer was lower than that determined by the Company, such property's estimated reserves has been reduced. The audit is an extensive review of the basic data of all the properties. The Company anticipates no write-down of its capitalized cost even in the current low product price environment." 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 40% per year during the last five years, with reserves additions in 1997 replacing the Company's production by more than 500%. 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. SOURCE Swift Energy Company CO: Swift Energy Company; Sonat, Inc. ST: Texas IN: OIL SU: 07/24/98 13:01 EDT prnewswire.com