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SWIFT ENERGY COMPANY NEWSSWIFT ENERGY REPORTS CONVERSION OF $100 MILLION OF DEBT AND S&P UPGRADEHOUSTON, January 2, 2001 - Swift Energy Company (NYSE, PCX: SFY) announced the conversion into common stock of approximately $100 million of its $115 million issue of 6¼% Convertible Subordinated Notes due 2006 (the “Notes”) effective December 22, 2000. Additionally, the Company reported that Standard & Poor’s (“S&P”) has upgraded its ratings for Swift Energy Company, as to both its corporate credit and remaining outstanding debt. Holders of $99.8 million of the original $115 million in Notes issued in late 1996 were converted into approximately 3.165 million shares of common stock of the Company, bringing the total outstanding shares of the Company to approximately 24.6 million common shares. Swift’s earnings per share on a diluted basis historically have included 3.65 million shares available on conversion. The remaining Notes were redeemed on December 26th at an aggregate redemption price, including required premium and accrued interest, of approximately $15.9 million. This redemption will result in a small, one-time charge for early retirement of debt by the Company during the fourth quarter of 2000. Additionally, S&P has raised their ratings on the Company with a stable outlook. S&P indicated that the ratings upgrade reflects material improvement in credit quality stemming from three events: (1) the improvement in capital structure by eliminating about 42% of its debt due to the conversion of most of these Notes; (2) good domestic and international drilling results that should enable Swift to post significant reserve additions in 2000 and increased production in 2001; and (3) an increase in Swift’s borrowing base to $200 million, which should provide the Company with ample liquidity, should oil and gas prices decline. The Company’s corporate credit rating has been upgraded from B+ to BB-. Terry Swift, President of Swift Energy Company, stated, “We are particularly pleased to end the year with the conversion of these Notes into shares of common stock. The elimination of a considerable portion of the Company’s debt through conversion into equity strengthens our balance sheet significantly as we move forward into 2001. This enables the Company to aggressively pursue its growth goals and completes a year in which the Company has had many successes. We believe that with our strong balance sheet, our many opportunities in our core areas of the United States and in New Zealand as well as our adept management team, Swift Energy is positioned to make some noteworthy strides in the coming years.” 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 as well as onshore oil and natural gas reserves in New Zealand. Founded in 1979 with headquarters in Houston, Texas, the Company has achieved outstanding growth rates in proved oil and gas reserves, production, and cash flow over the last five years through a disciplined program of acquisitions and drilling, while maintaining a strong financial position. 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 contained herein 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 Company’s filings with the Securities and Exchange Commission. Future performance is dependent upon oil and gas prices, exploratory and development drilling results, engineering and geologic information and changes in market conditions. 16825 Northchase Drive, Suite 400, Houston, Texas 77060
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This page was last updated on Monday, January 10, 2005, at 08:19:05 AM. Copyright © 1994-2008 by Swift Energy Company. |
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