|
10. Condensed Consolidating Financial Information
In December 2005, we amended the indenture for our 9-3/8% Senior
Subordinated Notes due 2012 and our 7-5/8% Senior Notes due 2011 to
reflect our new holding company organizational structure (as discussed
in Note 1). As part of this restructuring our indentures were amended so
that both Swift Energy Company and Swift Energy Operating, LLC (a wholly
owned indirect subsidiary of Swift Energy Company) became co-obligors of
these senior notes and senior subordinated debt. The co-obligations are
full and unconditional and are joint and several. Prior to this
restructure, Swift Energy Company was the sole obligor. The following is
condensed consolidating financial information for Swift Energy Company,
Swift Energy Operating, LLC, and significant subsidiaries:
Condensed Consolidating Balance Sheets
| (in thousands) |
December 31, 2005 |
|
Swift Energy Co. |
Swift Energy |
|
|
|
|
|
|
|
(Parent and
|
Operating, LLC |
Other |
|
|
|
Swift Energy Co.
|
|
Co-obligor) |
(Co-obligor) |
Subsidiaries |
|
Eliminations |
|
Consolidated |
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current assets |
$
|
--- |
|
$
|
92,788 |
|
$
|
22,267 |
|
$
|
--- |
|
$
|
115,055 |
| Property and
equipment |
|
--- |
|
|
862,717 |
|
|
216,316 |
|
|
--- |
|
|
1,079,034 |
| Investment in
subsidiaries (equity method) |
|
607,318 |
|
|
--- |
|
|
410,612 |
|
|
(1,017,930) |
|
|
--- |
| Other assets |
|
--- |
|
|
31,955 |
|
|
682 |
|
|
(22,313) |
|
|
10,324 |
|
|
---------------- |
|
|
---------------- |
|
|
---------------- |
|
|
---------------- |
|
|
---------------- |
| Total assets |
$ |
607,318 |
|
$ |
987,460 |
|
$
|
649,877 |
|
$
|
(1,040,243) |
|
$
|
1,204,413 |
|
|
========== |
|
|
========== |
|
|
========== |
|
|
========== |
|
|
========== |
| LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current
liabilities |
$
|
--- |
|
$
|
85,472 |
|
$
|
12,949 |
|
$
|
--- |
|
$
|
98,421 |
| Long-term
liabilities |
|
--- |
|
|
491,376 |
|
|
29,610 |
|
|
(22,313) |
|
|
498,674 |
| Stockholders’
Equity |
|
607,318 |
|
|
410,612 |
|
|
607,318 |
|
|
(1,017,930) |
|
|
607,318 |
|
|
---------------- |
|
|
---------------- |
|
|
---------------- |
|
|
---------------- |
|
|
---------------- |
| Total liabilities
and stockholders’ equity |
$
|
607,318 |
|
$
|
987,460 |
|
$
|
649,877 |
|
$
|
(1,040,243) |
|
$
|
1,204,413 |
|
|
========== |
|
|
========== |
|
|
========== |
|
|
========== |
|
|
========== |
| (in
thousands) |
|
December 31, 2004 |
|
Swift Energy Co. |
|
|
|
|
|
|
|
|
(Parent and
|
|
|
|
|
|
Swift Energy Co.
|
|
Issuer) |
|
Other Subsidiaries |
|
Eliminations |
|
Consolidated |
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
| Current assets |
$
|
38,713 |
|
$
|
15,673 |
|
$
|
--- |
|
$
|
54,386 |
| Property and
equipment |
|
719,209 |
|
|
204,229 |
|
|
--- |
|
|
923,438 |
| Investment in
subsidiaries (equity method) |
|
104,003 |
|
|
--- |
|
|
(104,003) |
|
|
--- |
| Other assets |
|
116,537 |
|
|
2,364 |
|
|
(106,152) |
|
|
12,749 |
|
|
---------------- |
|
|
---------------- |
|
|
---------------- |
|
|
---------------- |
| Total assets |
$ |
978,462 |
|
$
|
222,265 |
|
$
|
(210,155) |
|
$
|
990,573 |
|
|
========== |
|
|
========== |
|
|
========== |
|
|
========== |
| LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
| Current
liabilities |
$
|
60,160 |
|
$
|
8,458 |
|
$
|
--- |
|
$
|
68,618 |
| Long-term
liabilities |
|
444,130 |
|
|
109,805 |
|
|
(106,152) |
|
|
447,783 |
| Stockholders’
Equity |
|
474,172 |
|
|
104,003 |
|
|
(104,003) |
|
|
474,172 |
|
|
---------------- |
|
|
---------------- |
|
|
---------------- |
|
|
---------------- |
| Total liabilities
and stockholders’ equity |
$
|
978,462 |
|
$
|
222,265 |
|
$
|
(210,155) |
|
$
|
990,573 |
|
|
========== |
|
|
========== |
|
|
========== |
|
|
========== |
| (in
thousands) |
|
December 31, 2003 |
|
Swift Energy Co. |
|
|
|
|
|
|
|
|
(Parent and
|
|
|
|
|
|
Swift Energy Co.
|
|
Issuer) |
|
Other Subsidiaries |
|
Eliminations |
|
Consolidated |
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
| Current assets |
$
|
25,324 |
|
$
|
8,137 |
|
$
|
--- |
|
$
|
33,461 |
| Property and
equipment |
|
629,310 |
|
|
186,497 |
|
|
--- |
|
|
815,807 |
| Investment in
subsidiaries (equity method) |
|
87,780 |
|
|
--- |
|
|
(87,780) |
|
|
--- |
| Other assets |
|
109,088 |
|
|
2,534 |
|
|
(101,051) |
|
|
10,571 |
|
|
------------------- |
|
|
------------------ |
|
|
------------------- |
|
|
------------------- |
| Total assets |
$ |
851,502 |
|
$
|
197,168 |
|
$
|
(188,831) |
|
$
|
859,839 |
|
|
========== |
|
|
========== |
|
|
========== |
|
|
========== |
| LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
| Current liabilities
|
$
|
63,227 |
|
$
|
6,126 |
|
$
|
--- |
|
$
|
69,353 |
| Long-term liabilities |
|
390,884 |
|
|
103,262 |
|
|
(101,051) |
|
|
393,095 |
| Stockholders’ Equity |
|
397,391 |
|
|
87,780 |
|
|
(87,780) |
|
|
397,391 |
|
|
------------------- |
|
|
------------------- |
|
|
------------------- |
|
|
------------------- |
| Total liabilities and
stockholders’ equity |
$
|
851,502 |
|
$
|
197,168 |
|
$
|
(188,831) |
|
$
|
859,839 |
|
|
========== |
|
|
========== |
|
|
========== |
|
|
========== |
Condensed Consolidating Statements of Income
| (in
thousands) |
|
December 31, 2005 |
|
Swift Energy Co. |
|
Swift Energy |
|
|
|
|
|
|
|
(Parent and |
|
Operating, LLC |
|
Other |
|
|
|
Swift Energy Co. |
| |
Co-obligor) |
|
(Co-obligor) |
|
Subsidiaries |
|
Eliminations |
|
Consolidated |
| Revenues |
$
|
--- |
|
$ |
354,367 |
|
$
|
68,893 |
|
$
|
(34) |
|
$
|
423,226 |
| Expenses |
|
--- |
|
|
198,237 |
|
|
46,583 |
|
|
(34) |
|
|
244,787 |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Income (loss) before
the following: |
|
--- |
|
|
156,130 |
|
|
22,309 |
|
|
--- |
|
|
178,440 |
| Equity in net
earnings of subsidiaries |
|
115,778 |
|
|
--- |
|
|
97,880 |
|
|
(213,659) |
|
|
--- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Income before income
taxes |
|
115,778 |
|
|
156,130 |
|
|
120,190 |
|
|
(213,659) |
|
|
178,440 |
| Income tax provision
(benefit) |
|
--- |
|
|
58,249 |
|
|
4,412 |
|
|
--- |
|
|
62,661 |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Net income |
$
|
115,778 |
|
$ |
97,881 |
|
$
|
115,778 |
|
$
|
(213,659) |
|
$
|
115,778 |
|
|
========= |
|
|
========= |
|
|
========= |
|
|
========= |
|
|
========= |
| (in
thousands) |
|
December 31, 2004 |
|
Swift Energy Co. |
|
|
|
|
|
|
|
|
(Parent and
|
|
|
|
|
|
Swift Energy Co.
|
|
Issuer) |
|
Other Subsidiaries |
|
Eliminations |
|
Consolidated |
| |
|
|
|
|
|
|
|
|
|
|
|
| Revenues |
$
|
256,608 |
|
$
|
53,817 |
|
$
|
(147) |
|
$
|
310,277 |
| Expenses |
|
171,147 |
|
|
37,838 |
|
|
(147) |
|
|
208,837 |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Income (loss) before
the following: |
|
85,461 |
|
|
15,979 |
|
|
--- |
|
|
101,440 |
| Equity in net
earnings of subsidiaries |
|
14,733 |
|
|
--- |
|
|
(14,733) |
|
|
--- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Income before income
taxes |
|
100,194 |
|
|
15,979 |
|
|
(14,733) |
|
|
101,440 |
| Income tax provision
(benefit) |
|
31,743 |
|
|
1,247 |
|
|
--- |
|
|
32,989 |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Net income |
$
|
68,451 |
|
$
|
14,733 |
|
$
|
(14,733) |
|
$
|
68,451 |
|
|
========= |
|
|
========= |
|
|
========= |
|
|
========= |
| (in
thousands) |
|
December 31, 2003 |
|
Swift Energy Co. |
|
|
|
|
|
|
|
|
(Parent and
|
|
|
|
|
|
Swift Energy Co.
|
|
Issuer) |
|
Other Subsidiaries |
|
Eliminations |
|
Consolidated |
| |
|
|
|
|
|
|
|
|
|
|
|
| Revenues |
$
|
163,237 |
|
$
|
48,594 |
|
$
|
(2,929) |
|
$
|
208,901 |
| Expenses |
|
123,327 |
|
|
37,764 |
|
|
(2,929) |
|
|
158,162 |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Income (loss) before
the following: |
|
39,909 |
|
|
10,830 |
|
|
--- |
|
|
50,739 |
| Equity in net
earnings of subsidiaries |
|
9,421 |
|
|
--- |
|
|
(9,421) |
|
|
--- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Income before income
taxes |
|
49,330 |
|
|
10,830 |
|
|
(9,421) |
|
|
50,739 |
| Income tax provision
(benefit) |
|
15,292 |
|
|
1,177 |
|
|
--- |
|
|
16,469 |
|
|
|
|
|
|
|
|
|
|
|
|
| Income before change
in accounting principle |
|
34,038 |
|
|
9,653 |
|
|
(9,421) |
|
|
34,271 |
| Cumulative effect of
change in accounting |
|
|
|
|
|
|
|
|
|
|
|
| principle (net of
taxes) |
|
(4,144) |
|
|
(232) |
|
|
--- |
|
|
(4,377) |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Net income |
$
|
29,894 |
|
$
|
9,421 |
|
$
|
(9,421) |
|
$
|
29,894 |
|
|
========= |
|
|
========= |
|
|
========= |
|
|
========= |
Condensed Consolidating Statements of Cash Flow
| (in
thousands) |
|
December 31, 2005 |
|
Swift Energy Co. |
|
Swift Energy |
|
|
|
|
|
|
|
|
(Parent and
|
|
Operating, LLC |
|
Other |
|
|
|
Swift Energy Co.
|
|
Co-obligor) |
|
(Co-obligor) |
|
Subsidiaries |
|
Eliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flow
from operations |
$
|
--- |
|
$
|
236,790 |
|
$
|
48,543 |
|
$
|
--- |
|
$
|
285,333 |
| Cash flow
from investing activities |
|
--- |
|
|
(194,909) |
|
|
(48,837) |
|
|
(3,672) |
|
|
(240,074) |
| Cash flow
from financing activities |
|
--- |
|
|
2,825 |
|
|
3,672 |
|
|
(3,672) |
|
|
2,825 |
|
|
|
------------ |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Net
increase in cash |
$ |
--- |
|
$ |
44,706 |
|
$
|
3,379 |
|
$
|
--- |
|
$
|
48,084 |
| Cash,
beginning of period |
|
--- |
|
|
205 |
|
|
4,715 |
|
|
--- |
|
|
4,920 |
|
|
------------ |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Cash, end
of period |
$
|
--- |
|
$
|
44,911 |
|
$
|
8,094 |
|
$
|
--- |
|
$
|
53,005 |
|
|
======== |
|
|
======== |
|
|
======== |
|
|
======== |
|
|
======== |
| (in
thousands)
|
|
December 31, 2004 |
|
Swift Energy Co. |
|
|
|
|
|
|
|
|
(Parent and
|
|
|
|
|
|
Swift Energy Co.
|
|
Issuer) |
|
Other Subsidiaries |
|
Eliminations |
|
Consolidated |
| |
|
|
|
|
|
|
|
|
|
|
|
| Cash flow from
operations |
$
|
147,114 |
|
$
|
35,469 |
|
$
|
--- |
|
$
|
182,583 |
| Cash flow from
investing activities |
|
(158,308) |
|
|
(35,878) |
|
|
5,100 |
|
|
(189,086) |
| Cash flow from
financing activities |
|
10,357 |
|
|
5,100 |
|
|
(5,100) |
|
|
10,357 |
|
|
------------ |
|
|
------------ |
|
|
------------ |
|
|
------------ |
| Net increase
(decrease) in cash |
|
(837) |
|
|
4,691 |
|
|
--- |
|
|
3,854 |
| Cash, beginning of
period |
|
1,042 |
|
|
24 |
|
|
--- |
|
|
1,066 |
|
|
------------ |
|
|
------------ |
|
|
------------ |
|
|
------------ |
| Cash, end of period |
$
|
205 |
|
$
|
4,715 |
|
$
|
--- |
|
$
|
4,920 |
|
|
======== |
|
|
======== |
|
|
======== |
|
|
======== |
| (in
thousands)
|
|
December 31, 2003 |
|
Swift Energy Co. |
|
|
|
|
|
|
|
|
(Parent and
|
|
|
|
|
|
Swift Energy Co.
|
|
Issuer) |
|
Other Subsidiaries |
|
Eliminations |
|
Consolidated |
| |
|
|
|
|
|
|
|
|
|
|
|
| Cash flow from
operations |
$
|
81,376 |
|
$
|
29,451 |
|
$
|
--- |
|
$
|
110,827 |
| Cash flow from
investing activities |
|
(101,756) |
|
|
(32,454) |
|
|
3,157 |
|
|
(131,053) |
| Cash flow from
financing activities |
|
17,476 |
|
|
3,157 |
|
|
(3,157) |
|
|
17,476 |
|
|
------------ |
|
|
------------ |
|
|
------------ |
|
|
------------ |
| Net increase
(decrease) in cash |
|
(2,904) |
|
|
154 |
|
|
--- |
|
|
(2,750) |
| Cash, beginning of
period |
|
3,947 |
|
|
(131) |
|
|
--- |
|
|
3,816 |
|
|
------------ |
|
|
------------ |
|
|
------------ |
|
|
------------ |
| Cash, end of period |
$
|
1,043 |
|
$
|
23 |
|
$
|
--- |
|
$
|
1,066 |
|
|
======== |
|
|
======== |
|
|
======== |
|
|
======== |
|
