Reconciliation of Non-GAAP Financial Measures

Note: Swift Energy now maintains all its price risk management instruments (Hedge positions) on a separate page (click here to see).

 

 
SWIFT ENERGY COMPANY
 THIRD QUARTER AND FULL YEAR 2008
 GUIDANCE ESTIMATES
 

Actual
For Second
Quarter 2008

Guidance
For Third
Quarter 2008

Guidance
For Full
Year 2008
                 

Production Volumes (MMBoe)

2.69

2.66

-

 2.81  

10.80

-

 11.20
                 

Production Mix:

               

   Natural Gas (Bcf)

5.53

5.6

-

 5.9  

22.8

-

 23.6

   Crude Oil (MMBbl)

1.48

1.42

-

 1.51  

5.76

-

 5.97

   Natural Gas Liquids (MMBbl)

0.29

0.30

-

 0.32  

1.24

-

 1.28

Product Pricing (Note 1):

                

   Natural Gas (per Mcf)

               

      NYMEX Differential (Note 2)

$(0.44)

($0.60)

-

 ($1.00)  

($0.50)

-

 ($1.25)

   Crude Oil (per Bbl)

                

      NYMEX differential (Note 3)

$1.40

($1.25)

-

 ($2.25)  

($1.00)

-

 ($3.00)

   NGL (per Bbl)

               

      Percent of NYMEX Crude

55%

50%

-

 65%  

50%

-

 65%

Oil & Gas Production Costs:

                

   Lease Operating Costs (per Boe)

$10.61

$9.15

-

 $10.00  

$9.70

-

 $10.20
   Severance & Ad Valorem Taxes (as % of Revenue dollars)

10.2%

10.7%

-

 11.0%  

10.5%

-

 10.6%
Other Costs:                

   G&A per Boe

$3.82

$3.90

-

 $4.25  

$3.75

-

 $4.00

   nterest Expense per Boe

$3.06

$2.50

-

 $2.70  

$2.75

-

 $2.90

   DD&A per Boe

$21.26

$21.00

-

 $21.95  

$21.00

-

 $21.75
Supplemental Information:                
Capital Expenditures                

   Operations

$133,249

$135,000

-

 $150,000  

$493,500

-

 $544,500

   Acquisition/Dispositions, net

$---

$0

-

 ($1,000)  

($5,000)

-

 ($10,000)
Capitalized G&G (Note 4)

$7,350

$7,100

-

 $7,500  

$28,000

-

 $30,500
Capitalized Interest

$1,960

$2,000

-

 $2,300  

$8,500

-

 $10,000
Total Capital Expenditures

$142,560

$144,100

-

 $158,800  

$525,000

-

 $575,000
                 
Basic Weighted Average Shares

30,608

30,700

-

 31,000  

30,400

-

 30,900
Diluted Computation:                

   Weighted Average Shares

31,341

31,400

-

 32,500  

30,900

-

 32,000
                 
Effective Tax Rate (Note 5)

36.4%

36.0%

-

 37.0%  

36.0%

-

 37.0%
Deferred Tax Percentage

96.0%

85%

-

 95%  

80%

-

 90%
                 
Note 1: Swift Energy now maintains all its current price risk management instruments (hedge positions) on its Hedge Activity page on the Swift Energy website (www.swiftenergy.com).
Note 2: Average of monthly closing Henry Hub NYMEX futures price for the respective contract months, included in the period, which best benchmarks the 30-day price received for domestic natural gas sales.
Note 3: Average of daily WTI NYMEX futures price during the calendar period reflected which best benchmarks the daily price received for the majority of crude oil sales.
Note 4: Does not include capitalized acquisition costs, incorporated in acquisitions when occurred.
Note 5: Effective Tax rate guidance is based off of NYMEX strip pricing

 

EBITDA represents income before interest expense, income tax, and depreciation, depletion and amortization (including the write-down of oil and gas properties). We have reported EBITDA because we believe EBITDA is a measure commonly reported and widely used by investors as an indicator of a company's operating performance and ability to incur and service debt. We believe EBITDA assists such investors in comparing a company's performance on a consistent basis without regard to depreciation, depletion and amortization, which can vary significantly depending upon accounting methods or nonoperating factors such as historical cost. EBITDA is not a calculation based on GAAP and should not be considered an alternative to net income in measuring our performance or used as an exclusive measure of cash flow because it does not consider the impact of working capital growth, capital expenditures, debt principal reductions and other sources and uses of cash which are disclosed in our Consolidated Statements of Cash flows. Investors should carefully consider the specific items included in our computation of EBITDA. While EBITDA has been disclosed on this website to permit a more complete comparative analysis of our operating performance and debt servicing ability relative to other companies, investors should be cautioned that EBITDA as reported by us may not be comparable in all instances to EBITDA as reported by other companies. EBITDA amounts may not be fully available for management's discretionary use, due to certain requirements to conserve funds for capital expenditures, debt service and other commitments.

SWIFT ENERGY COMPANY
Reconciliation of GAAP(a) to non-GAAP Measures
(UNAUDITED)
In Thousands

 

 

 

Three Months Ended

  
 

 

June 30, 2008

  

 

June 30, 2007

  
INCOME TO EBITDA RECONCILIATIONS:            
             
   Income from Continuing Operations

 

  

$83,245

  

 

  

$30,523

  

173%
   Provision for Income Taxes

 

  

47,727

  

 

  

18,034

  

 
   Interest Expense, Net

 

  

8,231

  

 

  

7,296

  

 
   Depreciation, Depletion & Amortization & ARO (b)    

57,747

      

44,203

    
      ------------------       ------------------    
EBITDA    

$196,950

      

$100,056

  

97%
      =========       =========    
 

 

Six Months Ended

  
 

 

June 30, 2008

  

 

June 30, 2007

  
             
   Income from Continuing Operations

 

  

$133,080

  

 

  

$56,968

  

134%
   Provision for Income Taxes

 

  

76,734

  

 

  

33,506

  

 
   Interest Expense, Net

 

  

16,921

  

 

  

14,042

  

 
   Depreciation, Depletion & Amortization & ARO (b)    

110,695

      

86,266

    
      ------------------       ------------------    
EBITDA    

$337,430

      

$190,782

  

77%
      =========       =========    
 

 

Three Months Ended

  
 

 

June 30, 2008

  

 

June 30, 2007

  
CASH FLOW RECONCILIATIONS:            
             
Net Cash Provided by Operating Activities – Continuing Operations

 

  

$155,053

  

 

  

$114,808

  

35%
   Increases and Decreases In:

 

  

 

  

 

  

 

  

 
      Accounts Receivable

 

  

34,220

  

 

  

(5,176)

  

 
      Accounts Payable and Accrued Liabilities    

(7,443)

      

(5,730)

    
      Income Taxes Payable    

658

      

90

  

 
      Accrued Interest    

1,897

      

3,825

    
      ------------------       ------------------    
Cash Flow Before Working Capital Changes – Continuing Operations    

$184,385

      

107,817

   71%
      =========       =========    
                   
 

 

Six Months Ended

  
 

 

June 30, 2008

  

 

June 30, 2007

  
             
Net Cash Provided by Operating Activities – Continuing Operations

 

  

$294,743

  

 

  

$193,383

  

52%
   Increases and Decreases In:

 

  

 

  

 

  

 

  

 
      Accounts Receivable

 

  

31,948

  

 

  

(5,762)

  

 
      Accounts Payable and Accrued Liabilities    

(6,493)

      

1,531

    
      Income Taxes Payable    

79

      

974

  

 
      Accrued Interest    

360

      

1,897

    
      ------------------       ------------------    
Cash Flow Before Working Capital Changes – Continuing Operations    

$320,637

      

$192,023

   67%
      =========       =========    

(a)GAAP—Generally Accepted Accounting Principles
(b)Includes accretion of asset retirement obligation

Note: Items may not total due to rounding

 

Below is a reconciliation of EBITDA to Net Income (in thousands) for the years 1998-2002.

Year Ended December 31,

2002 2001 2000 1999 1998
EBITDA Data:
   Net Income (Loss) $11,923 $(22,348) $59,184 $19,287 $(48,225)
   Provision (Benefit) for Income Taxes 6,485 (12,237) 33,265 10,450 (25,166)
   Cumulative Effect of Accounting Change -- 393 --

--

--

   Extraordinary Loss -- -- 630 --

--

   Interest Expense, Net 23,275 12,627 15,968

14,443

8,752
   Depreciation, Depletion, Amortization & ARO Accretion 56,224 59,502 47,771 42,349 39,343
   Write-down of Oil and Gas Properties -- 98,862 -- -- 90,773
---------- ---------- ---------- ---------- ----------
EBITDA $97,907 $136,799 $156,818 $86,529 $65,477

 

This press release 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, guidance or other statements other than statements of historical fact, are forward-looking statements. These statements are based upon assumptions that are subject to change and to risks, especially the uncertainty of finding, replacing, developing or acquiring reserves, availability of labor, services and supplies, hurricanes or tropical storms disrupting operations, and volatility in oil or gas prices. 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 filings of the Company with the Securities and Exchange Commission. Estimates of future financial or operating performance provided by the Company are based on existing market conditions and engineering and geologic information available at this time. Actual financial and operating performance may be higher or lower. Future performance is dependent upon oil and gas prices, exploratory and development drilling results, engineering and geologic information and changes in market conditions.

 

Click here to see Hedging Activity.

 

 
Historical Guidance:

 

 

This page was last updated on Thursday, August 07, 2008, at 02:27:34 AM.

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