Hedging Activities

SWIFT ENERGY COMPANY
2007-2008 HEDGES
Participating Collar (PC)*, Trigger Deals or Forward Sales (FS), and Floors (FL)

Updates

In its May 8, 2008, press release, Swift Energy reported it had purchased natural gas floors that cover approximately 45% to 50% of its currently expected second quarter 2008 domestic natural gas production at an average NYMEX strike price of $7.68 per MMBtu. Additionally, natural gas floors had been purchased for the third quarter 2008 covering approximately 30% to 35% of that quarter’s estimated domestic natural gas production. These third quarter floors have an average NYMEX strike price of $8.71 per MMBtu. The Company has also purchased floors at a $93.55 average NYMEX strike price covering 40% to 45% of its third quarter crude oil production.

In its February 14, 2008, press release, Swift Energy reported that it had purchased natural gas floors that cover approximately 30% to 35% of its currently expected first quarter 2008 domestic natural gas production at an average NYMEX strike price of $7.02 per MMBtu. Additionally, natural gas floors have been purchased for the second quarter 2008 covering approximately 40% to 44% of that quarter’s estimated domestic natural gas production. These second quarter floors have an average NYMEX strike price of $7.45 per MMBtu. The Company has also purchased floors at a $71.22 average NYMEX strike price covering 40% to 43% of its first quarter crude oil production.

In its November 1, 2007, press release, Swift Energy announced that it has entered into price risk management transactions and reports the following current positions. The Company has purchased floors covering 639,000 barrels for the first quarter 2008 crude oil production at an average NYMEX strike price of $71.22 per barrel and floors covering 1.33 Bcf for the first quarter 2008 natural gas production at an average NYMEX strike price of $6.90 per MMBtu.

In its August 2, 2007, press release, Swift Energy announced that it has approximately 35% to 40% of its estimated third quarter domestic natural gas production covered with floors at an average NYMEX strike price of $7.11 per MMbtu.

In a May 3, 2007, press release, Swift Energy announced that since its last price risk management update on February 23, 2007, it has continued to enter into numerous price risk management transactions. The Company now has approximately 40% to 45% of its estimated second quarter domestic natural gas production covered with floors at an average NYMEX strike price of $6.62 per MMbtu. The Company has also purchased floors that cover 750,000 MMBtu of natural gas in the third quarter at a NYMEX strike price of $7.00 per MMbtu.

In a February 8, 2007, press release, Swift Energy reported that it has continued to enter into price risk management transactions and reported the following current positions. The Company has purchased floors that cover approximately 20% to 25% of its currently expected first quarter domestic natural gas production at an average NYMEX strike price of $6.88 per MMBtu. Additionally, natural gas floors have been purchased covering approximately 22% to 27% of the estimated second quarter domestic natural gas production. These second quarter floors have an average NYMEX strike price of $6.43 per MMBtu.

In its August 3, 2006, press release, Swift Energy announced that since its last price risk management update on May 3, 2006, it has continued to enter into price risk management transactions and reports the following current positions. The Company has floors that cover 900,000 barrels, or 45% to 50% of its expected third quarter crude production in the third quarter at an average NYMEX strike price of $65.00 per barrel. The Company has also purchased floors that cover 900,000 barrels of crude production, or 40% to 45% of expected fourth quarter volumes, at an average NYMEX strike price of $63.77 per barrel. Future crude oil sales will include transportation charges or crude oil quality differentials that could result in price reductions ranging from $2.75 to $3.75 per barrel.

In its May 4, 2006, press release, Swift Energy announced that since its last price risk management update on February 23, 2006, it has continued to enter into price risk management transactions and reports the following current positions. The Company now has approximately 5% to 10% of its estimated second quarter domestic crude oil production sold at an average NYMEX strike price of $69.81 per barrel. The Company has also purchased floors that cover 675,000 barrels of crude production in the third quarter at a NYMEX strike price of $65.00 per barrel. Future crude oil sales will include transportation charges or crude oil quality differentials that could result in price reductions ranging from $3.25 to $4.25 per barrel.

In its January 18, 2006, press release, Swift Energy announced that it had entered into several price risk management transactions and reports the following initial 2006 positions. Swift Energy has purchased floors covering 400,000 MMBtu (million British thermal units) of first quarter 2006 domestic natural gas production at an average NYMEX strike price of $9.00 per MMBtu. For the second quarter 2006, the Company has 425,000 MMBtu of its domestic natural gas production covered by floors at an average NYMEX strike price of $8.00 per MMBtu.

In its August 3, 2005, press release, Swift Energy announced that since its last price risk management update on May 8, 2005, it has continued to enter into price risk management transactions and reports the following current positions. The Company now has approximately 8% to 12% of its estimated third quarter domestic crude oil production sold at an average NYMEX strike price of $56.55 per barrel. These NYMEX crude oil strike prices do not take into account transportation charges or crude oil quality differentials that could result in price reductions ranging from $2.00 to $3.00 per barrel.

Swift Energy has purchased floors covering 45% to 50% of estimated third quarter 2005 domestic natural gas production at an average NYMEX strike price of $5.60 per Mcf. For the fourth quarter 2005, Swift has 15% to 20% of its estimated domestic natural gas production covered by floors at an average NYMEX strike price of $5.91 per Mcf. 

In its May 9, 2005, press release, Swift Energy announced that since its last price risk management update on February 17, it has continued to enter into price risk management transactions and reports the following current positions. The Company now has approximately 18% to 20% of its estimated second quarter domestic crude oil production sold at an average NYMEX strike price of $51.43 per barrel. Also, Swift Energy has 4% to 6% of its estimated third quarter oil volumes sold at an average NYMEX strike price of $56.14 per barrel. These NYMEX crude oil strike prices do not take into account transportation charges or crude oil quality differentials that could result in price reductions ranging from $2.00 to $3.00 per barrel.

Swift Energy has purchased floors covering 57% to 61% of its estimated domestic natural gas production in the second quarter 2005 at an average NYMEX strike price of $5.77 per Mcf and 42% to 47% of estimated third quarter 2005 production covered by floors at an average NYMEX strike price of $5.60 per Mcf. For the fourth quarter 2005, Swift has 18% to 20% of its estimated natural gas production covered by floors at an average NYMEX strike price of $5.63 per Mcf.

In its February 17, 2005, press release, Swift Energy announced that since its last price risk management update on November 4, 2004, it has continued to enter into price risk management transactions and reports the following current positions. The Company now has approximately 30% to 35% of its currently estimated domestic crude oil barrels protected for the first quarter 2005. This protection consists of a $37.00 per barrel floor and several forward sales transactions with an average NYMEX strike price of $48.25 per barrel. The Company has approximately 4% to 8% of its second quarter domestic crude oil sold at an average NYMEX strike price of $49.95 per barrel. These NYMEX crude oil strike prices do not take into account transportation charges or crude oil quality differentials that could result in price reductions ranging from $2.00 to $3.00 per barrel.

In its November 4, 2004, press release, Swift Energy announced that since its last update on August 4, 2004, it has continued to enter into price risk management transactions and reports the following current positions. The Company had sold forward several tranches representing approximately 25% to 30% of its domestic crude oil barrels for the fourth quarter 2004, at an average NYMEX strike price of $45.06 per barrel. Also the Company bought floors for the first quarter of 2005 covering 72,000 barrels per month at a NYMEX strike price of $37.00 per barrel and sold forward 31,000 barrels of January 2005 crude oil at a NYMEX strike price of $52.85 per barrel. These NYMEX crude oil strike prices do not take into account transportation charges or crude oil quality differentials that could result in deductions ranging from $2.00 to $3.00 per barrel.

In its August 4, 2004, press release, Swift Energy announced that since its last update on July 20, 2004, it has continued to enter into price risk management transactions. The Company recently sold forward 1,500 barrels per day of crude oil for October and November 2004, each at a NYMEX strike price of $41.42 and $41.67 per barrel, respectively. 

In its July 20, 2004, press release, Swift Energy announced that it currently has between 50 to 55% of its domestic natural gas hedged for the third quarter 2004 and approximately 10 to 15% of its domestic natural gas hedged for the fourth quarter of 2004. All of the Company’s natural gas production in New Zealand is under long-term contract, which when included would effectively protect 70 to 75% of Swift’s total natural gas in the third quarter and 50 to 55% of total natural gas in the fourth quarter. Swift Energy has between 40 to 45% of its total crude oil hedged through a combination of forward sales and participating collars in the third quarter at an average forward sale price of $40.97 per barrel and an average floor strike of $31.30 per barrel. In the fourth quarter 2004, the Company recently had a forward sale of 1,500 barrels per day of crude oil for October at a NYMEX strike price of $40.51 per barrel.

In its May 5, 2004, press release, Swift Energy announced that since its last update on April 19, it has continued to enter into price risk management transactions. For June 2004, the Company executed a fixed price physical sale for crude oil of 1,500 barrels per day at an average NYMEX strike price of $37.55 per barrel. This NYMEX crude oil strike price does not take into account transportation charges or crude oil quality differentials that could result in deductions ranging from $2.00 to $3.00 per barrel. Also, the Company recently purchased additional natural gas floors that cover 285,000 million British thermal units (“MMBtu”) per month for the third quarter of 2004, all at a strike price of $5.50 per MMBtu. Details of all of Swift Energy’s price risk management activities can be found on the Company’s website.

In its April 19, 2004, press release, Swift Energy announced that since its February update it has continued to enter into additional price risk management transactions. For the second quarter, the Company executed a fixed price physical sale of crude oil for April 2004 of 4,500 barrels per day at an average NYMEX strike price of $35.07 per barrel, 3,000 barrels per day of crude oil for May 2004 at an average NYMEX strike price of $37.25 per barrel and 1,500 barrels per day of crude oil for June 2004 at average NYMEX strike price of $37.08 per barrel. These NYMEX crude oil strike prices do not take into account transportation charges or crude oil quality differentials that could result in deductions ranging from $2.00 and $3.00 per barrel. 

In its February 11, 2004, press release, Swift Energy announced that since its last update on January 26, it has continued to enter into price risk management transactions. The Company recently purchased additional natural gas floors that cover 200,000 million British thermal units (MMBtu) per month for the second quarter of 2004, all at a strike price of $5.00 per MMBtu. 

In its January 15, 2004, press release, Swift Energy announced that it has continued to enter into additional price risk management transactions. The Company recently purchased additional natural gas floors that cover 400,000 million British thermal units (MMBtu) per month for the first quarter of 2004, all at a strike price of $4.75 per MMBtu. Also for the first quarter, the Company purchased floors that cover 150,000 MMBtu per month for February and March 2004, all at a strike price of $5.00 per MMBtu. For the second quarter of 2004, the Company purchased natural gas floors that cover 400,000 MMBtu per month, all at a strike price of $4.75 per MMBtu. With regard to crude oil, the Company executed a fixed price physical sale for February 2004 of 3,700 barrels per day at an average NYMEX strike price of $34.29 per barrel and 3,000 barrels per day of crude oil for March 2004 at an average NYMEX strike price of $34.31 per barrel. These NYMEX crude oil strike prices do not take into account transportation charges or crude oil quality differentials that could result in deductions ranging from $2.00 and $3.00 per barrel. 

In its November 5, 2003, press release, Swift Energy announced that the Company recently purchased additional natural gas floors that cover 200,000 million British thermal units (MMBtu) per month for the first quarter of 2004, all at a strike price of $4.75 per MMBtu.

In its September 2, 2003, press release, Swift Energy announced that since its last update, it has continued to enter into additional price risk management transactions. The Company recently purchased additional crude oil floors, which cover 60,000 barrels in October and 30,000 barrels in November, at a strike price of $28.00 per barrel and $27.00 per barrel, respectively. The Company has also purchased natural gas floors, which cover 300,000 Million Btu (MMBtu) for November and December with a strike price of $4.75/MMBtu.

In its August 6, 2003, press release, Swift Energy announced that since its last update on July 8, it has continued to enter into additional price risk management transactions. The Company recently purchased additional crude oil floors, which cover 60,000 barrels in September and October and 30,000 barrels in November, all at a strike price of $27.50 per barrel.

In its July 8, 2003, press release, Swift Energy announced that since its last update on June 2, it has continued to enter into additional price risk management transactions. The Company recently purchased additional crude oil floors, which cover 60,000 barrels for August, at a strike price of $26.00 per barrel.

In its June 2, 2003, press release, the Company announced that it has continued to enter into additional price risk management transactions. The Company purchased participating cashless collars covering 90,000 barrels of crude oil for July 2003 with a floor price of $23.00 per barrel and a ceiling price of $28.50 per barrel and will participate in 60% of any prices received above this ceiling price. The Company also purchased crude oil floors covering 60,000 barrels for July 2003 at a strike price of $25.00 and natural gas floors covering 225,000 million Btu (MMBtu) per month from July through December 2003 at a floor price of $4.75 per MMBtu.

In its March 12, 2003, press release, the Company announced that since its last update on February 12, 2003, it has continued to enter into additional price risk management transactions. The Company purchased participating cashless collars for 30,000 barrels for May with a floor price of $26.00 per barrel and a ceiling price of $35.05 per barrel. The Company will participate in 60% of any prices received above this ceiling price. The Company also purchased natural gas floors for 100,000 million Btu (MMBtu) per month from April 2003 through and including October 2003 at a floor price of $4.75 per MMBtu.

In its February 12, 2003, press release, the Company announced that since its last update on January 21, 2003, it has continued to enter into additional price risk management transactions. The Company recently purchased a floor of $26.25 per barrel for 200,000 barrels for April 2003. Additionally, the Company purchased participating cashless collars for 30,000 barrels per month during the second quarter of 2003 with a floor price of $25.00 per barrel and a ceiling price of $32.42 per barrel. The Company will participate in 60% of any prices received above this ceiling. The Company also purchased natural gas floors for 100,000 MMBtu per month from April through and including October 2003 at a floor price of $4.50 per MMBtu.

As a result of the above mentioned and previously reported transactions, the Company has entered into hedges covering approximately 65-70 % of the Company’s expected total crude oil production in the first quarter and 45-50 % of expected total crude oil production in the second quarter. Similarly, in regards to domestic natural gas, the Company has now protected approximately 40-45 % of its expected natural gas production in the first quarter, 55-60 % in the second quarter, 35-40 % in the third quarter, and 10-15% in the fourth quarter.

In its January 21, 2003, press release, the Company announced that it has recently entered into a series of participating costless collars and floors for the majority of 2003. The Company has purchased floors for the first quarter that cover 425,000 barrels of crude oil at an average strike price of $26.45. For the first quarter, the Company also has 180,000 barrels of crude oil that are protected with participating costless collars with a floor of $21.00 and an average ceiling of $31.65, where the Company participates in 60% of the upside when the crude oil price received exceeds the ceiling price. In the second quarter, the Company also has 180,000 barrels protected using participating costless collars (with 60% upside participation) with a floor of $21.00 and a ceiling of $29.04. These hedges cover approximately 65-70% of the Company’s currently expected crude oil production in the first quarter and 15-20% of expected crude oil production in the second quarter.

Copyright © 1994-2008 by Swift Energy Company.
Click here to go to our home page or search page.
Please note the terms of use for the Swift Energy web site.
If you have comments or questions, see our feedback or requests pages.
Contact Swift Energy Company Stockholder Relations through e-mail info@swiftenergy.com or telephone (281) 874-2700.