SWIFT ENERGY COMPANY 2007 ANNUAL REPORT

Notes to Consolidated Financial Statements

10. Condensed Consolidating Financial Information In December 2005, we amended the indenture for our 9-3/8% Senior Subordinated Notes due 2012, which were redeemed in June 2007, 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 on our Notes due 2011 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 other subsidiaries: Condensed Consolidating Balance Sheets (in thousands)   December 31, 2007       Swift Energy Co. (Parent and Co-obligor)     Swift Energy Operating, LLC (Co-obligor)     Other Subsidiaries     Eliminations     Swift Energy Co. Consolidated                                   ASSETS                                                               Current assets   $ ---     $ 89,513     $ 110,437     $ ---     $ 199,950   Property and equipment     ---       1,760,195       ---       ---       1,760,195   Investment in subsidiaries (equity  method)     836,054       ---       760,158       (1,596,212 )     ---   Other assets     ---       28,828       ---       (19,922 )     8,906   Total assets   $ 836,054     $ 1,878,536     $ 870,595     $ (1,616,134 )   $ 1,969,051                                                                                       LIABILITIES AND STOCKHOLDERS’ EQUITY                                         Current liabilities   $ ---     $ 195,542     $ 34,541     $ (19,922 )   $ 210,161   Long-term liabilities     ---       922,836       ---       ---       922,836   Stockholders’ equity     836,054       760,158       836,054       (1,596,212 )     836,054   Total liabilities and stockholders’ equity   $ 836,054     $ 1,878,536     $ 870,595     $ (1,616,134 )   $ 1,969,051     (in thousands)   December 31, 2006       Swift Energy Co. (Parent and Co-obligor)     Swift Energy Operating, LLC (Co-obligor)     Other Subsidiaries     Eliminations     Swift Energy Co. Consolidated                                   ASSETS                                                               Current assets   $ ---     $ 75,270     $ 8,513     $ ---     $ 83,783   Property and equipment     ---       1,239,722       ---       ---       1,239,722   Investment in subsidiaries (equity  method)     797,917       ---       590,720       (1,388,637 )     ---   Other assets     ---       42,519       253,085       (33,427 )     262,177   Total assets   $ 797,917     $ 1,357,511     $ 852,318     $ (1,422,064 )   $ 1,585,682                                                                                       LIABILITIES AND STOCKHOLDERS’ EQUITY                                         Current liabilities   $ ---     $ 137,016     $ 8,455     $ ---     $ 145,471   Long-term liabilities     ---       629,775       45,946       (33,427 )     642,294   Stockholders’ equity     797,917       590,720       797,917       (1,388,637 )     797,917   Total liabilities and stockholders’ equity   $ 797,917     $ 1,357,511     $ 852,318     $ (1,422,064 )   $ 1,585,682     (in thousands)   December 31, 2005       Swift Energy Co. (Parent and Co-obligor)     Swift Energy Operating, LLC (Co-obligor)     Other Subsidiaries     Eliminations     Swift Energy Co. Consolidated                                   ASSETS                                                               Current assets   $ ---     $ 92,788