Second Quarter 2008



 SWIFT ENERGY COMPANY
SUMMARY FINANCIAL INFORMATION

FROM CONTINUING OPERATIONS (Unaudited)
- In Thousands Except Per Share and Price Amounts -

 

 
 

Three Months Ended

Six Months Ended

 

June 30,

June 30,

  2008 2007   Percent Change 2008 2007   Percent Change
Revenues:                
   Oil & Gas Sales

$263,184

$156,311

 

68%

$463,157

$286,533

 

62%

   Other

(503)

99

NM%

(1,516)

(44)

NM%

  ------------ --------------   ------------ ------------  
Total Revenue

$262,681

$156,410

 

68%

$461,641

$286,489

 

61%

         

 

 

 

 

Income From Continuing Operations

$83,245

$30,523

 

173%

$133,080

$56,968

 

134%

Basic EPS – Continuing Operations

$2.72

$1.02

 

167%

$4.37

$1.91

 

129%

Diluted EPS – Continuing Operations

$2.66

$1.00

 

166%

$4.27

$1.86

 

129%

Net Cash Provided By Operating Activities – Continuing Operations

$155,053

$114,808

 

35%

$294,743

$193,383

 

52%

Net Cash Provided By Operating Activities, Per Diluted Share – Continuing Operations

$4.95

$3.75

 

32%

$9.46

$6.33

 

50%

Cash Flow Before Working Capital Changes(1) (non-GAAP measure) – Continuing Operations

$184,385

$107,817

 

71%

$320,637

$192,023

 

67%

Cash Flow Before Working Capital Changes, Per Diluted Share – Continuing Operations

$5.88

$3.52

 

67%

$10.29

$6.28

 

64%

Weighted Average Shares Outstanding (Diluted)

$31,341

30,613

 

(2)%

31,149

30,554

 

(2)%

         

 

 

 

 

EBITDA(1) (non-GAAP measure)

$196,950

$100,056

 

97%

$337,430

$190,782

 

77%

         

 

 

 

 

Production (MBoe) – Continuing Operations:

2,694

2,589

 

4%

5,264

5,123

 

3%

         

 

 

 

 

Realized Price ($/Boe) – Continuing Operations:

$97.70

$60.37

 

62%

$87.98

$55.93

 

57%

 

(1) See reconciliation on page 6. Management believes that the non-GAAP measures EBITDA and cash flow before working capital changes are useful information to investors because they are widely used by professional research analysts in the valuation, comparison, rating and investment recommendations of companies within the oil and gas exploration and production industry. Many investors use the published research of these analysts in making their investment decisions.

 

 

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SWIFT ENERGY COMPANY
 SUMMARY INCOME STATEMENT INFORMATION (Unaudited)
- In Thousands Except Per BOE Amounts -

 

Three Months Ended

Six Months Ended

 

June 30, 2008

Per Boe

 

June 30, 2008

Per Boe

             
Revenues:            
  Oil & Gas Sales

$263,184

 

$97.70

 

$463,157

$87.98

  Other Revenue

(503)

 

(0.18)

 

(1,516)

(0.28)

  -----------------   -----------------   ----------------- -----------------
 

262,681

 

97.52

 

461,641

87.70

  -----------------   -----------------   ----------------- -----------------
Costs and Expenses:            
  General and Administrative, net

10,291

 

3.82

 

20,210

3.84

  Depreciation, Depletion & Amortization

57,280

 

21.26

 

109,774

20.85

  Accretion of Asset Retirement Obligation (ARO)

467

 

0.17

 

921

0.17

  Lease Operating Costs

28,584

 

10.61

 

55,009

10.45

  Severance & Other Taxes

26,856

 

9.97

 

48,992

9.31

  Interest Expense, Net

8,231

 

3.06

 

16,921

3.21

  -----------------   -----------------   ----------------- -----------------
    Total Costs & Expenses

  $131,709

 

$48.90

 

$251,827

$47.84

  -----------------   -----------------   ----------------- -----------------
             
Income from Continuing Operations Before Income Taxes

130,972

 

48.62

 

209,814

39.86

Provision for Income Taxes

47,727

 

17.72

 

76,734

14.58

  -----------------   -----------------   ----------------- -----------------
Income from Continuing Operations

  $83,245

 

$30.90

 

$133,080

$25.28

Loss from Discontinued Operations, Net of Taxes

(1,326)

 

NM

 

(2,800)

NM

  =========   =========   ========= =========
Net Income

$81,919

 

NM

 

$130,280

NM

  =========   =========   ========= =========
             
Additional Information:            
  Capital Expenditures

$142,560

     

$318,962

 
  Capitalized Geological & Geophysical

$7,350

     

$13,761

 
  Capitalized Interest Expense

$1,960

     

$3,921

 
  Deferred Income Tax

$45,302

     

$73,730

 


 

 

Note: Items may not total due to rounding.


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 SWIFT ENERGY COMPANY
 CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)
- In Thousands -

   

Six Months Ended

   

June 30, 2008

   

June 30, 2007

Cash Flows From Operating Activities:              
   Net Income    

$130,280

     

$59,098

   Plus (Income) Loss From Discontinued Operations, Net of Taxes    

2,800

     

(2,130)

   Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities -    

 

     

 

   Depreciation, Depletion, and Amortization

 

 

109,774

 

 

 

85,576

   Accretion of Asset Retirement Obligation (ARO)

 

 

921

 

 

 

690

   Deferred Income Taxes

 

 

73,730

 

 

 

33,473

   Stock Based Compensation Expense

 

 

5,965

 

 

 

5,147

   Debt Retirement Cost – Cash and Non-Cash    

---

     

12,765

   Other

 

 

(2,833)

 

 

 

(2,596)

   Change in Assets and Liabilities -    

 

     

 

      (Increase)/Decrease in Accounts Receivable

 

 

(31,948)

 

 

 

5,762

      Increase/(Decrease) in Accounts Payable and Accrued Liabilities

 

 

6,493

 

 

 

(1,531)

      Decrease in Income Taxes Payable

 

 

(79)

     

 (974)

      Decrease in Accrued Interest

 

 

(360)

 

 

 

(1,897)

      -----------------       -----------------
Cash Provided by Operating Activities – Continuing Operations    

294,743

     

193,383

Cash Provided by Operating Activities – Discontinued Operations    

6,690

     

12,672

      -----------------       -----------------
      Net Cash Provided by Operating Activities

 

 

301,433

 

 

 

206,055

     

----------------- 

     

-----------------

Cash Flows From Investing Activities:    

 

     

 

   Additions to Property and Equipment

 

 

(318,962)

 

 

 

(199,373)

   Proceeds from the Sale of Property and Equipment

 

 

113

 

 

 

215

   Net Cash Received as Operator of Partnerships and Joint Ventures

 

 

---

 

 

 

485

      -----------------       -----------------
Cash Used in Investing Activities – Continuing Operations    

(318,849)

     

(198,673)

Cash Provided by (Used) in Investing Activities – Discontinued Operations    

80,731

     

(7,536)

      -----------------       -----------------
      Net Cash Used in Investing Activities

 

 

(238,118)

 

 

 

(206,209)

      -----------------       -----------------
Cash Flows From Financing Activities:    

 

     

 

   Proceeds From Long-Term Debt    

---

     

250,000

   Payments of Long-Term Debt    

---

     

(200,000)

   Net Payments of Bank Borrowings

 

 

(62,800)

 

 

 

(31,400)

   Net Proceeds From Issuance of Common Stock

 

 

7,313

 

 

 

2,244

   Excess Tax Benefits From Stock-Based Awards

 

 

1,083

 

 

 

---

   Purchase of Treasury Shares    

(1,387)

     

(955)

   Payments of Debt Retirement Costs    

---

     

(9,376)

   Payments of Debt Issuance Costs    

---

     

(4,201)

      -----------------       -----------------
Cash Provided by (Used) in Financing Activities – Continuing Operations    

(55,791)

     

6,312

Cash Provided by Financing Activities – Discontinued Operations    

---

     

---

      -----------------       -----------------
      Net Cash Provided by Financing Activities

 

 

(55,791)

 

 

 

6,312

      -----------------       -----------------
Net Increase in Cash and Cash Equivalents

 

 

7,524

 

 

 

6,158

Cash and Cash Equivalents at the Beginning of the Period

 

 

5,623

     

1,058

-----------------       -----------------
Cash and Cash Equivalents at the End of the Period

 

 

$13,147

 

 

 

$7,216

      =========       =========

 

Note: Items may not total due to rounding.

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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.

This statement should be read in conjunction with the attached press release (also in PDF format).

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SWIFT ENERGY COMPANY
OPERATIONAL INFORMATION(1)
QUARTERLY COMPARISON -- SEQUENTIAL & YEAR-OVER-YEAR
(UNAUDITED)

 

Three Months Ended

       

Three Months Ended

 

June 31, 2008

   

Mar. 31, 2008

 

Percent
Change

   

June 30, 2007

   

Percent
Change

                         
   

 

   

 

     

 

     
Domestic Production :  

 

     

 

   

 

   

 

   

 

   Oil & Natural Gas Equivalent (MBoe)  

2,694

     

2,570

   

5%

   

2,589

   

4%

   Natural Gas (Bcf)  

5.53

     

5.01

   

10%

   

3.50

   

58%

   Crude Oil (MBbl)  

1,482

     

1,420

   

4%

   

1,872

   

(21)%

   NGL (MBbl)  

290

     

316

   

(8)%

   

134

   

116%

   

 

     

 

   

 

   

 

   

 

Domestic Average Prices:  

 

     

 

   

 

   

 

   

 

   Combined Oil & Natural Gas ($/Boe)  

$97.70

     

$77.80

   

26%

   

$60.37

   

62%

   Natural Gas ($/Mcf)  

$10.49

     

$7.97

   

32%

   

 $7.56

   

39%

   Crude Oil ($/Bbl)  

$125.20

     

$99.43

   

26%

   

$66.20

   

89%

   NGL ($/Bbl)  

$67.73

     

 $59.80

   

13%

   

$44.22

   

53%

 

(1) Does not include production and pricing information for our New Zealand activities, which have been included in discontinued operations in our financial statements.

 



SWIFT ENERGY COMPANY
 SUMMARY BALANCE SHEET INFORMATION (Unaudited)
- In Thousands -

 

As of
June 30, 2008

 

As of
December 31, 2007

       
        Assets:

Current Assets:

     
  Cash and Cash Equivalents

$13,147

 

$5,623

  Other Current Assets

133,096

 

97,778

  Current Assets Held for Sale

564

 

96,549

 

------------------

 

------------------

Total Current Assets

146,807

 

199,950

 

 

 

 

Oil and Gas Properties

3,015,882

 

2,717,112

Other Fixed Assets

35,169

 

33,064

Less-Accumulated DD&A

(1,100,632)

 

(989,981)