Bank Borrowings. At December 31, 2003, we had $15.9 million in outstanding borrowings under our $300.0 million credit facility with a syndicate of ten banks that has a borrowing base of $250.0 million and expires in October 2005. At December 31, 2002, we had no outstanding borrowings under our credit facility. The interest rate is either (a) the lead bank’s prime rate (4.00% at December 31, 2003) or (b) the adjusted London Interbank Offered Rate (“LIBOR”) plus the applicable margin depending on the level of outstanding debt. The applicable margin is based on the ratio of the outstanding balance to the last calculated borrowing base. Of the $15.9 million borrowed at December 31, 2003, $15.5 million was borrowed at the LIBOR rate plus applicable margin, which averaged 2.41%.

The terms of our credit facility include, among other restrictions, a limitation on the level of cash dividends (not to exceed $5.0 million in any fiscal year), a remaining aggregate limitation on purchases of our stock of $15.0 million, requirements as to maintenance of certain minimum financial ratios (principally pertaining to working capital, debt, and equity ratios), and limitations on incurring other debt or repurchasing our Senior Notes. Since inception, no cash dividends have been declared on our common stock. We are currently in compliance with the provisions of this agreement. The credit facility is secured by our domestic oil and gas properties. We have also pledged 65% of the stock in our two active New Zealand subsidiaries as collateral for this credit facility. The borrowing base is re-determined at least every six months and was reconfirmed by our bank group and increased to $250.0 million effective November 1, 2003, an increase of $55.0 million from the previous level of $195.0 million. We requested that the commitment amount with our bank group be reduced to $150.0 million effective May 9, 2003. Under the terms of the credit facility, we can increase this commitment amount back to the total amount of the borrowing base at our discretion, subject to the terms of the credit agreement. The next scheduled borrowing base review is in May 2004.

Interest expense on the credit facility, including commitment fees and amortization of debt issuance costs, totaled $1.6 million in 2003, $3.6 million in 2002, and $5.8 million in 2001. The amount of commitment fees included in interest expense was $0.6 million in both 2003 and 2002 and $0.3 million in 2001.

Senior Notes Due 2009. Our Senior Notes due 2009 consist of $125.0 million of 10.25% Senior Subordinated Notes due August 2009. The Senior Notes were issued at 99.236% of the principal amount on August 4, 1999, and will mature on August 1, 2009. The Senior Notes are unsecured senior subordinated obligations and are subordinated in right of payment to all our existing and future senior debt, including our bank borrowings. Interest on the Senior Notes is payable semiannually, on February 1 and August 1, and commenced with the first payment on February 1, 2000. On or after August 1, 2004, the Senior Notes are redeemable for cash at the option of Swift, with certain restrictions, at 105.125% of principal, declining to 100% in 2007. Upon certain changes in control of Swift, each holder of Senior Notes will have the right to require us to repurchase the Senior Notes at a purchase price in cash equal to 101% of the principal amount, plus accrued and unpaid interest to the date of purchase. The terms of these Senior Notes include, among other restrictions, a limit on repurchases by Swift of its common stock. We are currently in compliance with the provisions of the indenture governing the Senior Notes.

Interest expense on the Senior Notes due 2009, including amortization of debt issuance costs and discount, totaled $13.2 million in both 2003 and 2002, and $13.1 million in 2001.

Senior Notes Due 2012. Our Senior Notes due 2012 consist of $200.0 million of 9.375% Senior Subordinated Notes due May 2012. The Senior Notes were issued on April 11, 2002, and will mature on May 1, 2012. The notes are unsecured senior subordinated obligations and are subordinated in right of payment to all our existing and future senior debt, including our bank debt. Interest on the Senior Notes is payable semiannually on May 1 and November 1, with the first interest payment on November 1, 2002. On or after May 1, 2007, the Senior Notes are redeemable for cash at the option of Swift, with certain restrictions, at 104.688% of principal, declining to 100% in 2010. In addition, prior to May 1, 2005, we may redeem up to 33.33% of the Senior Notes with the proceeds of qualified offerings of our equity at 109.375% of the principal amount of the Senior Notes, together with accrued and unpaid interest. Upon certain changes in control of Swift, each holder of Senior Notes will have the right to require us to repurchase the Senior Notes at a purchase price in cash equal to 101% of the principal amount, plus accrued and unpaid interest to the date of purchase. The terms of these Senior Notes include, among other restrictions, a limit on repurchases by Swift of its common stock. We are currently in compliance with the provisions of the indenture governing the Senior Notes.

Interest expense on the Senior Notes due 2012, including amortization of debt issuance costs and discount, totaled $19.1 million in 2003 and $13.5 million in 2002.

The aggregate maturities on our long-term debt are $0, $15.9 million, $0, $0, and $0, and $325.0 million for 2004, 2005, 2006, 2007, 2008, and thereafter, respectively.

We have capitalized interest on our unproved properties in the amount of $6.8 million, $7.0 million, and $6.3 million, in 2003, 2002, and 2001, respectively.