|
FORM 10-Q FOR QUARTER ENDED SEPTEMBER 30, 2005PDF VersionUNITED STATES
|
| TEXAS | 74-2073055 |
| (State of Incorporation) | (I.R.S. Employer Identification No.) |
| 16825 Northchase Drive, Suite 400 | |
Houston, Texas 77060
(281) 874-2700
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities and Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes X No
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes X No
Indicate the number of shares outstanding of each of the
Issuer's
classes of common stock,
as of the latest practicable date.
| Common Stock | 28,707,472 Shares |
| ($.01 Par Value) | (Outstanding at October 31, 2005) |
| (Class of Stock) |
September 30, 2005 December 31, 2004
ASSETS Current Assets: Cash and cash equivalents $65,884,410 $ 4,920,118 Accounts receivable -- Oil and gas sales 26,033,786 38,021,693 Joint interest owners 620,836 960,395 Other receivables 4,364,492 61,259 Other current assets 12,711,468 10,422,531 ---------------------- ---------------------- Total Current Assets 109,614,992 54,385,996 ---------------------- ---------------------- Property and Equipment: Oil and gas, using full-cost accounting Proved properties being amortized 1,628,673,729 1,479,681,903 Unproved properties not being amortized 88,930,610 80,121,509 ---------------------- ---------------------- 1,717,604,339 1,559,803,412 Furniture, Fixtures and Other Equipment 13,937,524 12,820,622 ---------------------- ---------------------- 1,731,541,863 1,572,624,034 Less--Accumulated Depreciation, Depletion, and Amortization (724,883,856) (649,185,874) ---------------------- ---------------------- 1,006,658,007 923,438,160 ---------------------- ---------------------- Other Assets: Deferred income taxes --- 1,666,058 Debt issuance costs 8,315,219 9,148,977 Restricted assets 1,906,356 1,933,956 ---------------------- ---------------------- 10,221,575 12,748,991 ---------------------- ---------------------- $1,126,494,574 $990,573,147 =========== ===========
Liabilities and Stockholders' EquitySee accompanying notes to condensed consolidated financial statements.
| September 30, 2005 | December 31, 2004 | |
|---|---|---|
| Liabilities and Stockholders' Equity | ||
| Current Liabilities: | ||
| Accounts payable and accrued liabilities | $ 30,090,850 | $ 29,406,877 |
| Accrued capital costs | 32,993,814 | 22,489,467 |
| Accrued interest | 10,336,338 | 9,209,192 |
| Undistributed oil and gas revenues | 8,690,801 | 7,512,755 |
| ---------------------- | ---------------------- | |
| Total Current Liabilities | 82,111,803 | 68,618,291 |
| ---------------------- | ---------------------- | |
| Long-Term Debt | 350,000,000 |
357,500,000 |
| Deferred Income Taxes | 111,618,430 |
73,106,580 |
| Asset Retirement Obligation | 16,565,580 |
17,176,136 |
| Lease Incentive Obligation | 177,530 |
--- |
| Commitments and Contingencies | ||
| Stockholders' Equity: | ||
| Preferred stock $.01 par value, 5,000,000 shares authorized, | ||
| none outstanding | --- | --- |
| Common stock, $.01 par value, 85,000,000 shares authorized, | ||
| 29,155,556 and 28,570,632 shares issued, and 28,706,112 | ||
| and 28,089,764 shares outstanding, respectively | 291,556 |
285,706 |
| Additional paid-in capital | 359,240,234 |
343,536,298 |
| Treasury stock held, at cost, 449,444 and 480,868 shares, respectively | (6,445,586) |
(6,896,245) |
| Unearned Compensation | (6,527,242) | (1,728,585) |
| Retained Earnings | 219,602,010 | 138,524,301 |
| Accumulated Other Comprehensive Income (Loss), Net of Taxes | (139,741) | 450,665 |
| -------------- | ---------------------- | |
| 566,021,231 | 474,172,140 | |
| -------------- | ---------------------- | |
| $1,126,494,574 | $990,573,147 | |
| ========== | ========== |
See accompanying notes to condensed consolidated financial statements.
Three Months Ended Nine Months Ended 09/30/05
09/30/04
09/30/05
09/30/04
Revenues:
Oil and gas sales
$
101,007,524$74,653,106
$301,451,257
$212,431,665
Price-risk management and other, net (154,019) 289,645 (677,143) (1,089,449) --------------------- --------------------- --------------------- --------------------- 100,853,505
74,942,751
300,774,114
211,342,216
--------------------- --------------------- --------------------- ---------------------
Costs and Expenses:
General and administrative, net
5,803,946
4,390,432
15,674,141
12,595,665
Depreciation, depletion and amortization
23,870,287
19,845,167
76,853,296
57,649,907
Accretion of asset retirement obligation
191,529
168,135
565,531
498,870
Lease operating costs
12,221,153
9,848,949
34,835,158
29,910,742
Severance and other taxes
9,670,565
7,077,994
29,582,400
20,251,822
Interest expense, net
6,194,370
7,317,002
18,825,273
21,361,566
Debt retirement cost
--
6,822,476
--
9,513,719
--------------------- --------------------- --------------------- --------------------- 57,951,850
55,470,155
176,335,799
151,782,291
--------------------- --------------------- --------------------- --------------------- Income Before Income Taxes
42,901,655
19,472,596
124,438,315
59,559,925
Provision for Income Taxes
15,394,756
5,341,879
43,360,606
17,943,427
--------------------- --------------------- --------------------- --------------------- Net Income
$27,506,899
$14,130,717
$81,077,709
$41,616,498
===========
===========
===========
===========
Per share amounts
Basic: Net Income
$0.9
6$0.
51$
2.86$
1.50===========
===========
===========
===========
Diluted: Net Income
$0.9
2$0.
50$
2.77$
1.47===========
===========
===========
===========
Weighted Average Shares Outstanding
28,632,895
27,948,095
28,390,120
27,747,789
See accompanying notes to condensed consolidated financial statements.
Other Com- Additional Unearned prehensive Common Paid-In Treasury Compen- Retained Income Stock (1) Capital Stock sation Earnings (Loss) Total ------------- --------------- ------------ --------------- ----------------- ----------------- --------------- Balance December 31, 2003 $280,111 $334,865,204 $(7,558,093) $ -- $70,073,384 $(269,342) $397,391,264 ========= ========= ========= ========== ========== ========== ========= Stock issued for benefit plans (46,150 shares) -- 166,298 661,848 -- -- -- 828,146 Stock options exercised (509,105 shares) 5,091 4,260,882 -- -- -- -- 4,265,973 Tax benefits from exercise of stock options -- 1,956,555 -- -- -- -- 1,956,555 Employee stock purchase plan (50,418 shares) 504 502,097 -- -- -- -- 502,601 Issuance of restricted stock -- 1,785,262 -- (1,785,262) -- -- -- Amortization of restricted stock -- -- -- 56,677 -- -- 56,677 Net income -- -- -- -- 68,450,917 -- 68,450,917 Other comprehensive income -- -- -- -- -- 720,007 720,007 --------------- Total comprehensive income -- -- -- -- -- -- 69,170,924 ------------- --------------- ------------ --------------- ----------------- ----------------- --------------- Balance December 31, 2004 $ 285,706 $ 343,536,298 $(6,896,245) $(1,728,585) $138,524,301 $450,665 $ 474,172,140 ========= ========= ========= ========== ========== ========== ========= Stock issued for benefit plans (31,424 shares) -- 435,134 450,659 -- -- -- 885,793 Stock options exercised (538,488 shares) 5,386 5,810,358 -- -- -- -- 5,815,744 Tax benefits from exercise of stock options -- 2,625,563 -- -- -- -- 2,625,563 Employee stock purchase plan (31,436 shares) 314 642,354 -- -- -- -- 642,668 Issuance of restricted stock (15,000 shares) 150 6,229,557 -- (5,766,426) -- -- 463,281 Forfeitures of restricted stock -- (39,030) -- 39,030 -- -- -- Amortization of restricted stock -- -- -- 928,739 -- -- 928,739 Net income -- -- -- -- 81,077,709 -- 81,077,709 Other comprehensive loss -- -- -- -- -- (590,406) (590,406) --------------- Total comprehensive income -- -- -- -- -- -- 80,487,303 ------------- --------------- ------------ --------------- ----------------- ----------------- --------------- Balance September 30, 2005 $ 291,556 $ 359,240,234 $(6,445,586) $(6,527,242) $219,602,010 $(139,741) $ 566,021,231 ========= ========= ========= ========== ========== ========== =========
(1) $.01 Par Value
See accompanying notes to condensed consolidated financial statements.
| Period Ended September 30, | ||
|---|---|---|
| 2005 | 2004 | |
| ----------------- | ----------------- | |
| Cash Flows From Operating Activities: | ||
| Net income | $ 81,077,709 | $ 41,616,498 |
| Adjustments to reconcile net income to net cash provided | ||
| by operating activities - | ||
| Depreciation, depletion, and amortization | 76,853,296 | 57,649,907 |
| Accretion of asset retirement obligation | 565,531 | 498,870 |
| Deferred income taxes | 42,610,606 | 17,534,427 |
| Debt retirement cost | --- | 9,513,719 |
| Other | 2,324,132 | 839,048 |
| Change in assets and liabilities - | ||
| (Increase) decrease in accounts receivable | 15,162,260 | (5,940,575) |
| Increase in accounts payable and accrued liabilities | 739,152 | 2,402,826 |
| Increase in accrued interest | 1,127,146 | 2,304,843 |
| ----------------- | ----------------- | |
| Net Cash Provided by Operating Activities | 220,459,832 | 126,419,563 |
| ----------------- | ----------------- | |
| Cash Flows From Investing Activities: | ||
| Additions to property and equipment | (158,125,266) | (128,499,752) |
| Proceeds from the sale of property and equipment | 2,387,293 | 1,411,554 |
| Net cash distributed as operator of oil and gas | ||
| properties | (2,183,944) | (3,910,392) |
| Net cash received (distributed) as operator of partnerships | (467,534) | 81,254 |
| Other | 64,480 | (101,164) |
| ----------------- | ----------------- | |
| Net Cash Used in Investing Activities | (158,324,971) | (131,018,500) |
| ----------------- | ----------------- | |
| Cash Flows From Financing Activities: | ||
| Proceeds from long-term debt | --- | 150,000,000 |
| Payments of long-term dept | --- | (125,000,000) |
| Net payments of bank borrowings | (7,500,000) | (9,700,000) |
| Net proceeds from issuances of common stock | 6,329,431 | 3,559,781 |
| Payments of debt retirement costs | --- | (6,712,062) |
| Payments of debt issuance costs | --- | (4,333,535) |
| ----------------- | ----------------- | |
| Net Cash Provided by (Used in) Financing Activities | (1,170,569) | 7,814,184 |
| ----------------- | ----------------- | |
| Net Increase in Cash and Cash Equivalents | 60,964,292 | 3,215,247 |
| Cash and Cash Equivalents at Beginning of Period | 4,920,118 | 1,066,280 |
| ----------------- | ----------------- | |
| Cash and Cash Equivalents at End of Period | $65,884,410 | $4,281,527 |
| ========== | ========== | |
| Supplemental disclosures of cash flows information: | ||
| Cash paid during period for interest, net of amounts capitalized | $ 16,887,396 | $18,200,440 |
| Cash paid during period for income taxes | $ 750,000 | $ 409,000 |
See accompanying notes to condensed consolidated financial statements.
(1) GENERAL INFORMATION
The condensed consolidated financial statements included herein have been prepared by Swift Energy Company and reflect necessary adjustments, all of which were of a recurring nature, and are in the opinion of our management necessary for a fair presentation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission. We believe that the disclosures presented are adequate to allow the information presented not to be misleading. The condensed consolidated financia