1995 ANNUAL REPORTCapital Formation
The year 1995 marked an important milestone in the Company's capital formation activities. After years of relying on its public limited partnership offering as a principal source of capital, the Company completed its move toward a greater emphasis on traditional sources of financing. In the third quarter of the year, Swift sold 5.75 million additional shares of the Company's common stock, resulting in net proceeds to the Company of approximately $46 million. The offering underwriters were Oppenheimer & Co. Inc., Morgan Keegan & Company Inc., and Southcoast Capital Corporation. This infusion of capital substantially improved the overall financial position of the Company, allowing it to retire all short-term debt. More importantly, the proceeds provided the financial resources needed to accelerate the Company's exploration and development drilling program. Together, the reduction in short-term interest payments that resulted from the debt retirement and the increase in oil and natural gas sales expected to occur as a result of the expanded drilling program should greatly enhance the Company's cash flows. This improved financial position gives Swift much more flexibility in both short-term and long-term planning. Prior to Swift's discontinuation of its public income and pension partnership offerings, SDI partnerships had provided $12.4 million during 1995 for investments in producing properties. Of this, $5.0 million was actually invested in acquisitions, with the remaining $7.4 million to be invested during 1996. During 1995, Swift continued to raise capital on a private placement basis through the offering of general and limited partner interests in drilling partnerships. Subscriptions to the three drilling partnerships closed in 1995 totaled $15.9 million.
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This page was last updated on Saturday, February 08, 2003, at 07:28:38 PM. Copyright © 1994-2008 by Swift Energy Company. |
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