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SWIFT ENERGY COMPANY NEWSSWIFT ENERGY COMPANY EXPECTS RECORD 1994 PRODUCTION, REVENUES, AND CASH FLOWS; ACCOUNTING CHANGE WILL RESULT IN A ONE-TIME NON-CASH CHARGE AGAINST STOCKHOLDERS' EQUITYHOUSTON, February 7, 1995 - Swift Energy Company's (NYSE, PSE: SFY) Chief Executive Officer, A. Earl Swift, today announced that full year 1994 earnings from operations should exceed analysts' expectations of approximately $.50 per share; however, a one-time charge resulting from a change in accounting policy will result in a net loss for 1994. Although earnings from operations will be lower than 1993's earnings, 1994 production, revenues, and cash flow are expected to reach record levels. In addition, year-end 1994 reserves are expected to be 15% above the level reported a year earlier, representing the tenth consecutive year of growth. The Company is expected to release full year operating results on February 17th. Mr. Swift reported that, effective January 1, 1994, the Company intends to change its accounting policy for earned interests from limited partnerships and joint ventures. As a result of this change, non-cash earned interests will no longer be reported as revenues, reducing the Company's investment in oil and gas property. This accounting change will have no impact on cash flow and is not expected to have a significant impact on reported earnings from operations for 1994, although the accounting change will result in a net loss for the year. The cumulative effect of the accounting change, which will be recorded in 1994, will result in a non-cash charge against stockholders' equity of approximately $16.8 million and a corresponding reduction of oil and gas property. After the charge, year-end stockholders' equity is expected to be $42 million compared to $54 million at the end of 1993. The change in accounting policy results in a cumulative reduction in the Company's oil and gas property account and thus has reduced the Company's depreciation, depletion and amortization rate in 1994 and future years. Long-term debt to total capitalization will rise modestly to about 41% at year-end 1994 from 35% a year earlier. Swift Energy Company is an independent oil and gas company engaged primarily in the acquisition, exploration, development and operation of oil and gas properties, with an emphasis on domestic onshore operations. Swift has a record of growth that is founded on an ambitious program of reserves acquisition and enhancement, disciplined exploration, conservative financing and innovative management. 16825 Northchase Drive, Suite 400, Houston, Texas 77060
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This page was last updated on Thursday, January 06, 2005, at 11:04:09 AM. Copyright © 1994-2008 by Swift Energy Company. |
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