|
|
January 1, 1997 Company Profile |
||
|
|
|||
|
Swift Energy Company is an independent oil and natural gas company located in Houston, Texas--is engaged in the exploration, development, operation, and acquisition of oil and gas properties, with a focus on U.S. onshore natural gas reserves. Since its founding in 1979, the Company has achieved sustained growth in proved oil and gas reserves, with increases of approximately 40% per year during the last five years and an increase of 47% in 1996.
|
|||
|
|||
|
Company Mission As a natural resource company, Swift Energy’s mission has always been to achieve growth in the volume and net present value of its proved reserves. The Company’s mission is based upon the premise that reserves growth leads to increases in oil and gas production and sales, which in turn lead to higher cash flows and earnings, and ultimately, to increases in shareholder value. Swift’s success in exceeding its reserves growth targets during the last five years has enabled it to achieve five-year compounded annual growth rates of 45% in oil and gas sales, 44% in cash flows from operating activities, and 50% in net income. To continue this success, Swift’s primary strategic goal for the next several years is to increase its oil and gas reserves at a rate of 40% or more per year.
|
|||
|
|||
|
Common Stock Performance Swift’s policy is to reinvest earnings in order to promote growth in proved reserves, which over time promotes growth in the value of the Company's common stock. In 1996, the year-end price of Swift Energy’s common stock increased over its 1995 year-end price by 149%, compared to 21% for an index of peer companies (the U.S. Dow Jones Oil Secondary Index) and 23% for the S&P 500.
Business Strategy Swift’s mission of reserves growth is primarily accomplished through a focused exploration and development drilling program utilizing an array of advanced technologies--such as horizontal drilling, three-dimensional seismic analysis, and technologies for enhancing production from tight sands. Current focus areas include the South Texas AWP field and the Texas Austin Chalk trend. The Company more than doubled its inventory of leasehold acreage in these core areas during 1996. In addition, Swift is pursuing drilling opportunities in other parts of Texas, as well as in Arkansas, Louisiana, and Wyoming. During 1996, Swift Energy drilled 153 wells. Resulting success rates of 64% for exploratory wells and 94% for development wells exceeded industry averages for the sixth year in a row. Over the last three years, Swift’s exploration and development program has added approximately 214 Bcfe to the Company’s proved reserves. In addition to implementing its aggressive drilling program, the Company continuously reviews acquisition opportunities for strategic producing properties where performance can be enhanced through development drilling or improved operating efficiencies. Swift is also pursuing several long-term international initiatives in New Zealand, Venezuela, and Russia.
|
|||
|
|||
|
The Natural Gas Industry Because of Swift’s focus on natural gas reserves, approximately 87% of its year-end reserves were gas. Natural gas prices can therefore have a significant impact on sales revenues. During 1996, a 45% increase in gas prices contributed to higher sales--along with a 27% increase in oil and condensate prices, a 98% increase in gas production, and a 14% increase in oil and condensate production. Demand for clean-burning natural gas continues to rise in the U.S., increasing in 1996 to record levels. Increases in U.S. production and Canadian imports have failed to keep pace with demand, leading to price appreciation. Although market fundamentals suggest a continuation of strong prices in the future, Swift Energy does not assume high price levels in establishing its strategy. The Company believes it must remain positioned to respond to price volatility. Investor Information Swift Energy’s common stock is traded on the New York Stock Exchange (NYSE) and the Pacific Stock Exchange (PSE) under the symbol "SFY." Swift Energy’s convertible subordinated notes are listed on the NYSE under the symbol "SFY 06." (For an archive of company profiles, click here.)
|
|||
|
|
|||
|
|
|||
| This page was last updated on Saturday, February 08, 2003
, at 07:49:38 PM
.
Copyright © 1994-2008 by Swift Energy Company.
|
|||
|
|
|||
