|
|
|
|
FORM 10-K FOR FISCAL YEAR ENDED DECEMBER 31, 2006
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 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 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, 2006 |
|
Swift Energy Co. |
Swift Energy |
|
|
|
|
|
|
|
(Parent and |
Operating, LLC |
Other |
|
|
|
Swift Energy Co. |
|
Co-obligor) |
(Co-obligor) |
Subsidiaries |
|
Eliminations |
|
Consolidated |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets |
|
$--- |
|
|
$75,270 |
|
|
$17,303 |
|
|
$--- |
|
|
$92,573 |
|
Property and equipment |
|
--- |
|
|
1,239,722 |
|
|
243,590 |
|
|
--- |
|
|
1,483,312 |
|
Investment in subsidiaries (equity method) |
|
797,917 |
|
|
--- |
|
|
590,720 |
|
|
(1,388,637) |
|
|
--- |
|
Other
assets |
|
--- |
|
|
42,519 |
|
|
705 |
|
|
(33,427) |
|
|
9,797 |
|
|
------------ |
|
|
------------ |
|
|
------------ |
|
|
------------ |
|
|
------------ |
|
Total assets |
|
$797,917 |
|
|
$1,357,511 |
|
|
$852,318 |
|
|
$(1,422,064) |
|
|
$1,585,682 |
|
|
|
====== |
|
|
====== |
|
|
====== |
|
|
====== |
|
|
====== |
|
LIABILITIES AND STOCKHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
$--- |
|
|
$137,016 |
|
|
$8,959 |
|
|
$--- |
|
|
$145,975 |
|
Long-term liabilities |
|
--- |
|
|
629,775 |
|
|
45,442 |
|
|
(33,427) |
|
|
641,789 |
|
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, 200 5 |
|
Swift Energy Co. |
Swift Energy |
|
|
|
|
|
|
|
(Parent and |
Operating, LLC |
Other |
|
|
|
Swift Energy Co. |
|
Co-obligor) |
(Co-obligor) |
Subsidiaries |
|
Eliminations |
|
Consolidated |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets |
|
$--- |
|
|
$92,788 |
|
|
$22,267 |
|
|
$--- |
|
|
$115,055 |
|
Property and equipment |
|
--- |
|
|
862,717 |
|
|
216,316 |
|
|
--- |
|
|
1,079,034 |
|
Investment in subsidiaries (equity method) |
|
607,318 |
|
|
--- |
|
|
410,612 |
|
|
(1,017,930) |
|
|
--- |
|
Other
assets |
|
--- |
|
|
31,955 |
|
|
682 |
|
|
(22,313) |
|
|
10,324 |
|
|
------------ |
|
|
------------ |
|
|
------------ |
|
|
------------ |
|
|
------------ |
|
Total assets |
|
$607,318 |
|
|
$987,460 |
|
|
$649,877 |
|
|
$(1,040,243) |
|
|
$1,204,413 |
|
|
|
====== |
|
|
====== |
|
|
====== |
|
|
====== |
|
|
====== |
|
LIABILITIES AND STOCKHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
$--- |
|
|
$85,472 |
|
|
$12,949 |
|
|
$--- |
|
|
$98,421 |
|
Long-term liabilities |
|
--- |
|
|
491,376 |
|
|
29,610 |
|
|
(22,313) |
|
|
498,674 |
|
Stockholders’ equity |
|
607,318 |
|
|
410,612 |
|
|
607,318 |
|
|
(1,017,930) |
|
|
607,318 |
|
|
------------ |
|
|
------------ |
|
|
------------ |
|
|
------------ |
|
|
------------ |
|
Total liabilities and stockholders’ equity |
|
$607,318 |
|
|
$987,460 |
|
|
$649,877 |
|
|
$(1,040,243) |
|
|
$1,204,413 |
|
|
====== |
|
|
====== |
|
|
====== |
|
|
====== |
|
|
====== |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
December 31, 2004 |
|
|
Swift Energy Co. |
|
|
|
|
|
|
|
|
|
|
|
(Parent and |
|
|
Other |
|
|
|
|
|
Swift Energy Co. |
|
|
Co-obligor) |
|
|
Subsidiaries |
|
|
Eliminations |
|
|
Consolidated |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets |
|
$38,713 |
|
|
$15,673 |
|
|
$--- |
|
|
$54,386 |
|
Property and equipment |
|
719,209 |
|
|
204,229 |
|
|
--- |
|
|
923,438 |
|
Investment in subsidiaries (equity method) |
|
104,003 |
|
|
--- |
|
|
(104,003) |
|
|
--- |
|
Other
assets |
|
116,537 |
|
|
2,364 |
|
|
(106,152) |
|
|
12,749 |
|
|
------------ |
|
|
------------ |
|
|
------------ |
|
|
------------ |
|
Total assets |
|
$978,462 |
|
|
$222,265 |
|
|
$(210,155) |
|
|
$990,573 |
|
|
|
====== |
|
|
====== |
|
|
====== |
|
|
====== |
|
LIABILITIES AND STOCKHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
$60,160 |
|
|
$8,458 |
|
|
$--- |
|
|
$68,618 |
|
Long-term liabilities |
|
444,130 |
|
|
109,805 |
|
|
(106,152) |
|
|
447,783 |
|
Stockholders’ equity |
|
474,172 |
|
|
104,003 |
|
|
(104,003) |
|
|
474,172 |
|
|
------------ |
|
|
------------ |
|
|
------------ |
|
|
------------ |
|
Total liabilities and stockholders’ equity |
|
$978,462 |
|
|
$222,265 |
|
|
$(210,155) |
|
|
$990,573 |
|
|
====== |
|
|
====== |
|
|
====== |
|
|
====== |
Condensed Consolidating Statements of Income
| (in thousands) |
|
December 31, 2006 |
|
Swift Energy Co. |
|
Swift Energy |
|
|
|
|
|
|
|
(Parent and |
|
Operating, LLC |
|
Other |
|
|
|
Swift Energy Co. |
| |
Co-obligor) |
|
(Co-obligor) |
|
Subsidiaries |
|
Eliminations |
|
Consolidated |
| Revenues |
$
|
--- |
|
$ |
550,540 |
|
$
|
64,901 |
|
$
|
--- |
|
$
|
615,441 |
| Expenses |
|
--- |
|
|
302,232 |
|
|
50,923 |
|
|
--- |
|
|
353,155 |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Income (loss) before
the following: |
|
--- |
|
|
248,308 |
|
|
13,978 |
|
|
--- |
|
|
262,286 |
| Equity in net
earnings of subsidiaries |
|
161,565 |
|
|
--- |
|
|
151,075 |
|
|
(312,640) |
|
|
--- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Income before income
taxes |
|
161,565 |
|
|
248,308 |
|
|
165,052 |
|
|
(312,640) |
|
|
262,286 |
| Income tax provision
(benefit) |
|
--- |
|
|
97,234 |
|
|
3,487 |
|
|
--- |
|
|
100,721 |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Net income |
$
|
161,565 |
|
$ |
151,074 |
|
$
|
161,565 |
|
$
|
(312,640) |
|
$
|
161,565 |
|
|
========= |
|
|
========= |
|
|
========= |
|
|
========= |
|
|
========= |
| (in
thousands) |
|
December 31, 2005 |
|
Swift Energy Co. |
|
Swift Energy |
|
|
|
|
|
|
|
(Parent and |
|
Operating, LLC |
|
Other |
|
|
|
Swift Energy Co. |
| |
Co-obligor) |
|
(Co-obligor) |
|
Subsidiaries |
|
Eliminations |
|
Consolidated |
| Revenues |
$
|
--- |
|
$ |
354,367 |
|
$
|
68,893 |
|
$
|
(34) |
|
$
|
423,226 |
| Expenses |
|
--- |
|
|
198,237 |
|
|
46,583 |
|
|
(34) |
|
|
244,787 |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Income (loss) before
the following: |
|
--- |
|
|
156,130 |
|
|
22,309 |
|
|
--- |
|
|
178,440 |
| Equity in net
earnings of subsidiaries |
|
115,778 |
|
|
--- |
|
|
97,880 |
|
|
(213,659) |
|
|
--- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Income before income
taxes |
|
115,778 |
|
|
156,130 |
|
|
120,190 |
|
|
(213,659) |
|
|
178,440 |
| Income tax provision
(benefit) |
|
--- |
|
|
58,249 |
|
|
4,412 |
|
|
--- |
|
|
62,661 |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Net income |
$
|
115,778 |
|
$ |
97,881 |
|
$
|
115,778 |
|
$
|
(213,659) |
|
$
|
115,778 |
|
|
========= |
|
|
========= |
|
|
========= |
|
|
========= |
|
|
========= |
| (in
thousands) |
|
Year Ended December 31, 2004 |
|
Swift Energy Co. |
|
|
|
|
|
|
|
|
(Parent and
|
|
|
|
|
|
Swift Energy Co.
|
|
Issuer) |
|
Other Subsidiaries |
|
Eliminations |
|
Consolidated |
| |
|
|
|
|
|
|
|
|
|
|
|
| Revenues |
$
|
256,608 |
|
$
|
53,817 |
|
$
|
(147) |
|
$
|
310,277 |
| Expenses |
|
171,147 |
|
|
37,838 |
|
|
(147) |
|
|
208,837 |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Income (loss) before
the following: |
|
85,461 |
|
|
15,979 |
|
|
--- |
|
|
101,440 |
| Equity in net
earnings of subsidiaries |
|
14,733 |
|
|
--- |
|
|
(14,733) |
|
|
--- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Income before income
taxes |
|
100,194 |
|
|
15,979 |
|
|
(14,733) |
|
|
101,440 |
| Income tax provision
(benefit) |
|
31,743 |
|
|
1,247 |
|
|
--- |
|
|
32,989 |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Net income |
$
|
68,451 |
|
$
|
14,733 |
|
$
|
(14,733) |
|
$
|
68,451 |
|
|
========= |
|
|
========= |
|
|
========= |
|
|
========= |
Condensed Consolidating Statements of Cash Flow
| (in
thousands) |
|
December 31, 2006 |
|
Swift Energy Co. |
|
Swift Energy |
|
|
|
|
|
|
|
|
(Parent and
|
|
Operating, LLC |
|
Other |
|
|
|
Swift Energy Co.
|
|
Co-obligor) |
|
(Co-obligor) |
|
Subsidiaries |
|
Eliminations |
|
Consol. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flow
from operations |
$
|
--- |
|
$
|
383,241 |
|
$
|
41,680 |
|
$
|
--- |
|
$
|
424,921 |
| Cash flow
from investing activities |
|
--- |
|
|
(474,781) |
|
|
(59,881) |
|
|
11,115 |
|
|
(523,546) |
| Cash flow
from financing activities |
|
--- |
|
|
46,679 |
|
|
11,115 |
|
|
(11,115) |
|
|
46,679 |
|
|
|
------------ |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Net
decrease in cash |
$ |
--- |
|
$ |
(44,861) |
|
$
|
(7,086) |
|
$
|
--- |
|
$
|
(51,947) |
| Cash,
beginning of period |
|
--- |
|
|
44,911 |
|
|
8,094 |
|
|
--- |
|
|
53,005 |
|
|
------------ |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
|
|
--------------- |
| Cash, end
of period |
$
|
--- |
|
$
|
50 |
|
$
|
1,008 |
|
$
|
--- |
|
$
|
1,058 |
|
|
======== |
|
|
======== |
|
|
======== |
|
|
======== |
|
|
======== |
| (in
thousands) |
|
December 31, 2005 |
|
Swift Energy Co. |
|
Swift Energy |
|
|
|
|
|
|
|
|
(Parent and
|
|
Operating, LLC |
|
Other |
|
|
|
Swift Energy Co.
|
|
Co-obligor) |
|
(Co-obligor) |
|
Subsidiaries |
|
Eliminations |
|
Consol. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flow
from operations |
$
|
--- |
|
$
|
236,790 |
|
$
|
48,543 |
|
$
|
--- |
|
$
|
285,333 |
| Cash flow
from investing activities |
|
--- |
|
|
(194,909) |
|
|
(48,837) |
|
|
3,672 |
|
|
(240,074) |
| Cash flow
from financing activities |
|
--- |
|
|
2,825 |
|
|
3,672 |
|
|
